Some papers have "terms" requirements, which are the minimum levels of attendance or experience required before a final examination can be sat or a final grade awarded. You will be informed of these at the start of each paper. 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.