Agreement Term

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An Agreement Term is a provision that forms part of an Agreement.

An Agreement Term expresses part of the negotiated understanding among the Parties. It may establish, describe, qualify, or modify:

• A Right
• An Obligation
• A Permission
• A Prohibition
• A Condition
• A Commitment
• A Contractual Representation
• A Responsibility
• A procedure, calculation, definition, remedy, limitation, or other agreed provision

An Agreement Term may be stated directly in an Agreement Document, incorporated by reference from another source, or otherwise established under the applicable legal and contractual framework.

An Agreement Term is distinct from the Agreement as a whole. The Agreement represents the complete negotiated understanding. An Agreement Term represents one provision forming part of that understanding.

The word term may also refer to a period of duration. An Agreement Term, as defined here, means a provision of an Agreement and not the duration of the Agreement. Duration is represented using an Effective Period or another applicable temporal concept.

provision that forms part of an agreement

Adapted from:

• Cornell Law School Legal Information Institute: Term

  • Relevant meaning: a clause, provision, stipulation, or condition agreed among Parties
• Financial Industry Business Ontology, Contracts Ontology

  • Relevant concepts include Contractual Element, Contractual Commitment, Contractual Definition, and Non-Binding Term
• Financial Industry Business Ontology, Agreements Ontology

The expression Agreement Term is used by this corpus because it applies to Agreements generally and is not limited to legally binding Contracts.

• An Agreement Term forms part of an Agreement
• An Agreement may contain one or more Agreement Terms
• An Agreement Term may apply to one Party, multiple Parties, or the Agreement as a whole
• An Agreement Term may be binding or non-binding
• An Agreement Term may be express, implied, or incorporated by reference
• An Agreement Term may be conditional
• An Agreement Term may have its own Effective Date and Effective Period
• Different Agreement Terms within the same Agreement may have different Effective Periods
• An Agreement Term may establish more than one Right, Obligation, Permission, Prohibition, Commitment, or Responsibility
• A Right, Obligation, Permission, Prohibition, Commitment, or Responsibility may be established by more than one Agreement Term
• An Agreement Term is distinct from the Agreement Document in which it is recorded
• An Agreement Term is distinct from a section number, paragraph number, heading, or other document-navigation element
• An Agreement Term is distinct from the duration of an Agreement
• An Amendment may add, change, or remove an Agreement Term
• Changes to an Agreement Term must preserve the earlier term and its applicable period when required for traceability

An Agreement provides that Party A must deliver USD 1,000,000 to Party B on a specified Settlement Date.

The provision requiring delivery is an Agreement Term.

The Agreement Term establishes an Obligation for Party A and a corresponding Right for Party B.

The paragraph containing the Agreement Term is part of an Agreement Document. The paragraph and document provide a location and Evidence for the Agreement Term but remain distinct from the modeled term.