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Contract Glossary

Term

Definition

The term is how long your contract lasts — start date to end date. A 12-month term starting January 1 means you're committed until December 31. But some obligations (like confidentiality and non-competes) often survive long after the term expires.

In Practice

Your consulting agreement has a 6-month term with auto-renewal for successive 6-month periods. The confidentiality obligation survives for 3 years after termination. The non-solicitation clause survives for 18 months. So even after the 6-month term ends, you're still bound by those surviving provisions. The 'term' tells you when the active work ends; the 'survival' clauses tell you when your obligations actually end.

Frequently asked questions about term

It varies by contract type. Employment agreements are often indefinite (at-will). Service contracts run 6–12 months. Commercial leases run 3–10 years. Software licenses can be annual or perpetual. The 'right' term depends on how much commitment both parties want — longer terms provide stability but less flexibility.

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This content is for informational purposes only and does not constitute legal advice. For contracts with significant financial or legal implications, review by a qualified attorney is recommended.