The xterm program is the standard terminal emulator for the X Window System. It provides DEC VT102/VT220 and Tektronix 4014 compatible terminals for programs that can't use the window system directly. If the underlying operating system supports terminal resizing capabilities (for example, the SIGWINCH signal in systems derived from 4.3bsd), xterm will use the facilities to notify programs running in the window whenever it is resized.
Luit is a filter that can be run between an arbitrary application and a UTF-8 terminal emulator. It will convert application output from the locale's encoding into UTF-8, and convert terminal input from UTF-8 into the locale's encoding. It is mainly used to support xterm.