Definition: Legend. The term legend can be defined as a story passed from person to person usually orally by a storyteller and is about a heroic person or a fantastic place; the story often has some basis in truth about some historical event. . Legend Examples. King Arthur with his Knights of the Roundtable has long been a source of legend, such as the story about the Quest for the Holy Grail (the cup from which Jesus drank at the Last Supper)..