Also known as: term clauses · contract term · contract clause
Written by attorneys · grounded in primary & secondary sources — see below
A provision stating the duration, conditions, or obligations governing performance under a deed or contract.
Tundra Resources and Titan Industries signed a supply contract containing a clause that prohibited assignment of the contract. When Tundra attempted to delegate its duty to deliver goods to a third party, Titan invoked the clause. The court held that the clause barred only the delegation of performance duties and did not prevent assignment of rights to payment.
Travis Tate held a mortgage on property owned by Topaz Mining. During an economic emergency, state legislation imposed a temporary moratorium on foreclosures that affected the mortgage. The court upheld the law because it served an important public purpose and was narrowly tailored to the emergency.
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Tabitha Taylor sued a corporation and posted a bond under a state statute requiring security in shareholder derivative actions. The clause in the corporate charter was at issue. The court analyzed whether the bond requirement created an unconstitutional barrier to the suit.
Thomas Thompson contracted with Shell Oil for asphalt supply. The clause set prices but was silent on protection against increases. Evidence of trade usage showed that Shell had previously protected buyers from price spikes. The court interpreted the clause in light of that usage.
Taliah Tang purchased a phone from AT&T Mobility under a contract containing a clause requiring arbitration and banning class actions. When a dispute arose, Tang sought to litigate as a class. The court enforced the clause under the Federal Arbitration Act.
Tonya Takahashi sued American Express under a merchant agreement whose clause included an arbitration provision with a class-action waiver. Takahashi argued the waiver prevented effective vindication of rights. The court enforced the clause because the waiver was valid under the Federal Arbitration Act.
A term clause specifies the duration and type of estate conveyed to the grantee. It follows the granting clause and states whether the estate is in fee simple, for life, or for a term of years.
The term clause is another name for the habendum clause. Both serve to define the quantity and duration of the estate granted in the deed.
A clause prohibiting assignment of the contract typically bars only delegation of duties unless the parties manifest a contrary intention.
A statement forms a term when it is part of the legal relations arising from the parties' promises and relates to a particular matter.
…. . . jurists held that the constitution protected possession only, and not value." Siegel, Understanding the Nineteenth Century Contract Clause: The Role of the Property-Privilege Distinction and "Takings" Clause Jurisprudence, 60 S. Cal. L. Rev. 1, 76 (1986); Bosselman 106. Even indirect and consequential injuries to property…