The terms of a contract are basic to and go to the heart of the contract. For a written contract the terms are express provisions in writing. However, many contracts are both in writing and oral. A term of a contract is either a condition or warranty. A conflicting oral representation cannot upset an express written term in the contract. However, the written term may be unclear or not cover an oral representation. For example, oral representations made by an agent about the property being purchased. A term or representation is determined by the intention of the parties and this is ascertained objectively with the reasonable person test.

The court will not make or improve a contract for the parties. However, if the terms are unclear and not necessary to the contract they can be severed. The reasonable person test is used to determine the meaning of minor terms in the contract that are not expressly stated, or the terms may be interpreted on the basis of business efficacy.