Of the three things that provide direction to developers, the T&C have the highest legal precedence, and can over-ride all other considerations. The T&C are found directly in the contract. The term is sometimes completed with “…of the contract” in order to be explicit and precise.
It may be sad, but after all is said and done the lawyers really are in charge.
Contrast with Statements of Work and Specifications, both of which are of lower precedence.