Some papers have terms requirements, detailing minimum levels of attendance or experience required before a final examination can be sat or a final grade awarded. If you have not met terms requirements for a paper you will not be able to sit the final examination. The department will notify you of this prior to the exam period and you will receive an eventual final result of Failed Terms.
Failed Terms as a final result, by definition only applies to papers that have a final examination. Papers without a final exam should not use Failed Terms as a result.