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Every discipline/profession has terms associated with it. They are called professional jargon/register/lexicon. Thus, we have words associated with Government and Politics, Religion, Teaching, Cooking etc. As such, there are terms associated with Literature. These are Literary Terms. Literary Terms therefore, are words, terms, registers, lexical items or jargon used in Literature: prose, drama and poetry.
That is why in religion, we talk about SERMON but in Literature it becomes THEME. In science we propound theory but in Literature we talk make critical analysis.
Literary Terms are classified according to their genres: elements of prose, dramatic elements, poetic devices, figurative languages etc.