16:22
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LSDefine
Simple English definitions for legal terms
fundamental term
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A quick definition of fundamental term:
A fundamental term is a very important part of a contract that must be included for the contract to be valid. It is a rule that both parties must follow, and if one party doesn't follow it, the contract is broken. An implied term is a rule that is not written down but is still important. A material term is a rule that deals with important things like the price or quality of something. A nonfundamental term is a rule that is not as important. A term of years is a fixed period of time, like a lease on a house. A term of court is a period of time when a court is in session.A more thorough explanation:
Definition: A fundamental term is a contractual provision that must be included for a contract to exist. It specifies an essential purpose of the contract, so that a breach of the provision through inadequate performance makes the performance not only defective but essentially different from what had been promised.
Examples: A fundamental term in a contract for the sale of a car would be the delivery date. If the seller fails to deliver the car on the agreed-upon date, it would be considered a breach of the fundamental term and the buyer could cancel the contract. Another example would be the price of a product in a sales contract. If the seller charges a different price than what was agreed upon, it would be a breach of the fundamental term and the buyer could take legal action.
Explanation: Fundamental terms are essential to the existence of a contract and are necessary for the parties to have a clear understanding of their obligations. Breaching a fundamental term can have serious consequences, such as canceling the contract or taking legal action. It is important for parties to clearly define and agree upon fundamental terms before entering into a contract.