A more thorough explanation:

A defined term is a word or phrase that has a specific meaning for a particular document or contract. This meaning is usually different from the common or ordinary meaning of the word or phrase.

For example, in a lease agreement, the term "rent" may be defined as the amount of money paid by the tenant to the landlord for the use of the property. This definition may be different from the common understanding of the word "rent," which could refer to any payment made for the use of property.

Another example is the term "confidential information" in a non-disclosure agreement. The document may define this term as any information that is not publicly available and is disclosed by one party to the other. This definition helps to clarify what information is considered confidential and what is not.

Defined terms are important in legal drafting because they help to avoid confusion and ensure that all parties understand the meaning of the terms used in the document. By providing a specific definition for a term, the document becomes more precise and less open to interpretation.