Business Glossary

1. period of time during which the conditions of a contract will be carried out. This may refer to the time in which loan payments must be made, or the time when interest payments will be made on a certificate of deposit or a bond. It also may refer to the length of time a life insurance policy is in force.See also term life insurance .
2. provision specifying the nature of an agreement or contract, as in terms and conditions.
3. period of time an official or board member is elected or appointed to serve. For example, Federal Reserve governors are appointed for 14-year terms.

1. maturity of a loan or deposit , expressed in months. Short-term obligations or investments generally are less than a year; long-term instruments may have maturities from 1 year to 30 or 40 years.
2. any condition specifying how a loan is to be repaid, for example, the Annual Percentage Rate finance charge, monthly payment, number of payments, balloon payment , and so on.

1. duration of a subscription, continuity, membership, or other agreement, usually expressed in terms of a number of months, issues, cycles, or years. Long-term agreements are valued by sellers, because these agreements postpone the costs and risks associated with renewing or replacing a customer. Buyers prefer long-term agreements in an inflationary market, because they prevent the seller from raising the price for the term of the agreement. In a market with declining prices, buyers prefer short-term agreements, which enable them to renew or replace the product or service at a lower price at the end of the term.
2. condition of an agreement, such as a payment term specifying that all invoices are payable within 30 days.
3. word or phrase that defines a thing, concept, or process, such as the terms in this dictionary.

period of time of insurance coverage. If a loss occurs during this time, insurance benefits are paid. If a loss occurs after this time period has expired, no insurance benefits are paid.

1. the period of time during which something is in effect.
   Example: Fowler leases an apartment for a term of 1 year.

2. same as maturity .
   Example: At the end of the year, Fowler moved from the apartment and bought a house. To finance the purchase, Fowler got a mortgage with a term of 30 years. At the end of 30 years, the loan will be paid off.

1. period of time during which the conditions of a contract will be carried out. This may refer to the time in which loan payments must be made, or the time when interest payments will be made on a certificate of deposit or a bond. It also may refer to the length of time a life insurance policy is in force. See also term life insurance .
2. provision specifying the nature of an agreement or contract, as in terms and conditions.