A 'definite-term' refers to a specific, fixed period during which an agreement, contract, or obligation is intended to be in effect. This term is commonly used in legal contexts and can pertain to various types of agreements, including leases, employment, and loans. Unlike indefinite or at-will terms, a definite-term clearly outlines the start and end date, providing certainty to all parties involved.
Definite-term meaning with examples
- The rental agreement was structured as a definite-term lease, lasting for one year. This arrangement provided both the tenant and landlord with stability and clarity regarding their rights and responsibilities during that timeframe, ensuring peace of mind throughout the lease's duration.
- In employment contracts, a definite-term clause specifies the length of employment and may include provisions for renewal or termination. This type of agreement allows employees to understand the duration of their commitment while giving employers the ability to plan for future staffing needs.
- When securing a loan, banks typically provide borrowers with a definite-term in which they must repay the amount borrowed, including interest. This clear timeline enables borrowers to manage their finances effectively while fulfilling their obligations to the lender.
- The school district entered into a definite-term contract with a new contractor for the renovation of the gymnasium. The timeline was clearly defined, helping all parties involved to remain accountable and meet deadlines without ambiguity.
- In real estate, purchase agreements often stipulate a definite-term deadline by which the buyer must secure financing or complete due diligence. Such timeframes are crucial in keeping the transaction process smooth and preventing unnecessary delays.