A 'fixed-term' refers to an agreement, contract, position, or arrangement that is established for a specific, predetermined duration. It implies a defined start and end date, differing from open-ended or permanent arrangements. This term is common in various contexts, including employment contracts, financial investments, political mandates, and legal agreements like leases. The key characteristic is the limited lifespan, after which the agreement either concludes automatically, or requires renewal, extension, or renegotiation to continue. The duration can range from short periods, like a few months, to longer spans, covering several years. The fixed term provides both certainty and limitations to the involved parties concerning the scope of their obligations or benefits. Breaching the term can lead to penalties or legal consequences.
Fixed-term meaning with examples
- The company offered Sarah a fixed-term contract of two years, outlining her responsibilities and salary. This provided both the company and Sarah with a clear understanding of the employment period, ending without automatic renewal. This contrasted with a permanent position with a potentially longer duration and differing benefits packages. The end of the contract could bring a change in circumstance for both.
- The university president's role had a fixed-term mandate of five years. The university's governing board would evaluate their performance throughout, and a reappointment could be possible after. This helped to ensure accountability and provided an opportunity for potential leadership change. The term provided continuity while also preventing excessive influence in the future.
- The couple signed a fixed-term lease for their apartment, which was for one year. This ensured the landlord had a guaranteed tenancy length, whilst ensuring that the renters had housing for a guaranteed period. The expiration date was clearly stated in the contract and specified rules, and after the lease expires they would need to consider if they are to renew it.
- The investment fund had a fixed-term maturity of 10 years, providing a specific period. This allowed for a consistent plan, which meant investors understood when the principal and interest would be returned. This contrasted with perpetual funds. Investment plans can bring risk, but the investor must be aware of the risk and return.
- The parliament voted to establish a fixed-term of four years, defining the duration. This would set the period that the Government could function without facing early elections. This was done to ensure that there was political stability, and it contrasted with a system that would include votes of no confidence, or earlier elections.