1. Fixed period for which a loan, insurance policy, or bond is issued, a time or fixed deposit is made, or a contract lasts.
2. Clause or provision that constitutes a substantive part of a contract and may create a contractual obligation breach of which could be cause for legal action. Depending upon its importance, a term may either be a condition (essence of a contract) or a warranty (material part of a contract). A term may either be an express term (clearly and directly stated) or an implied term (inserted by the courts or a statute).