Conspicuous Term Law and Legal Definition

Conspicuous term is a term/terms in an agreement that is written in such a way that a reasonable man against whom the term/terms apply ought to have noticed. Main features of a conspicuous term are:

1. they are easy to notice; and

2. they attract attention.

The term is codified and defined at U.C.C. § 1-201(10) of Uniform Commercial code. The provision of the code reads:

“Conspicuous, with reference to a term, means so written, displayed, or presented that a reasonable person against which it is to operate ought to have noticed it. Whether a term is "conspicuous" or not is a decision for the court. Conspicuous terms include the following:

(A) a heading in capitals equal to or greater in size than the surrounding text, or in contrasting type, font, or color to the surrounding text of the same or lesser size; and

(B) language in the body of a record or display in larger type than the surrounding text, or in contrasting type, font, or color to the surrounding text of the same size, or set off from surrounding text of the same size by symbols or other marks that call attention to the language.