A term contract is a type of agreement where both parties involved commit to fulfilling their obligations for an extended period, usually lasting from several months to several years. This type of arrangement can be used in various industries and situations, such as employment or service provision. In the context of employment, it refers to a fixed-term contract that outlines the terms and conditions of work for a specific duration. The term contract is often used when an organization needs additional staff for a short period of time, or if there's a temporary increase in demand for certain services. It provides both parties with flexibility as well as security since it clearly defines the expectations and obligations during the agreed upon period.