How to Write a Terms and Conditions Agreement

It's essentially a contract between you and your customers. ... Think of a Terms and Conditions agreement as a "one stop shop" for all the key ... PrivacyPolicies.com Blog HowtoWriteaTermsandConditionsAgreement HowtoWriteaTermsandConditionsAgreement Lastupdatedon17May2022 byJenniferLaird (PrivacyPolicies.comLegalwriter) EveryonewhooffersgoodsandservicesonlineshouldhaveaTermsandConditionsagreementontheirwebsite. TermsandConditionsagreements(T&C)setoutexactlywhatyou'llofferyourcustomersandwhatyouexpectfromtheminreturn. Putsimply,TermsandConditionsmakeyourwebsitemoreprofessional. BeforewelookatdraftingaTermsandConditionsAgreement,let'sbeclearonhowoneworks.We'llalsolookathowtomakeyourT&Clegallyenforceable. NeedTermsandConditionsforyourbusiness?WecanhelpyougenerateacustomizedTermsandConditionsagreementinaroundtwo-threeminutesforfree.TryourTermsandConditionsGeneratorandjustfollowthesesteps: Clickonthe"CreateyourTermsandConditionstoday"button. AtStep1,selectthewherewillyouuseyourTerms&Conditionsandclick"Nextstep": Addinformationaboutyourbusiness: Selectthecountryandcontinuetothe"Nextstep": Answerthequestionsaboutyourbusinesspracticesandclick"Nextstep"whenfinished: Enteryouremailaddresswhereyou'dlikeyouragreementsentandclick"Generate." You'redone!Nowyou'llbeabletoinstantlyaccessanddownloadyournewagreement. 1.WhatisaTermsandConditionsAgreement?2.AreTermsandConditionsBindingUndertheLaw?3.AmILegallyRequiredtoHaveaTermsandConditionsAgreement?4.AGuidetoWritingYourTermsandConditionsAgreement5.9CommonClausesforAllTermsandConditionsAgreements5.1.Introduction5.2.EffectiveDate5.3.Jurisdiction/GoverningLaw5.4.ALinktoYourPrivacyPolicy5.5.ContactDetails5.6.LimitationofLiabilityandWarrantyDisclaimers5.7.RulesofConduct5.8.UserRestrictions5.9.RighttoTerminateAccounts6.DisplayingYourTermsandConditionsAgreement6.1.WebsiteFooter6.2.LinksWithinOtherAgreements6.3.CheckoutScreen6.4.LoginorSignupScreen7.TermsandConditions:GettingConsent7.1.ImpliedConsent7.2.ExpressConsent8.Conclusion WhatisaTermsandConditionsAgreement? It'sessentiallyacontractbetweenyouandyourcustomers. Youmakeservicesavailabletoyourcustomers. Inreturnforusingtheseservices,yourcustomerspromisethey'llfollowtherulesyousetoutinyourTermsandConditions. ThinkofaTermsandConditionsagreementasa"onestopshop"forallthekeyinformationthatcustomersneedbeforetheyuseyourservicesormakeapurchase. ATermsandConditionsagreementallowsyouto: Withdrawandcancelservices Disableuseraccounts Managecustomerexpectations Setrulesforuserbehavior So,nowwe'reclearonwhataTermsandConditionsAgreementis,let'sbrieflyanswersomecommonquestionsbeforewelookataTermsandConditionsagreementtemplate. AreTermsandConditionsBindingUndertheLaw? TermsandConditionsarelegallyenforceable,yes. Althoughyoucan'tcontrolwhethercustomersactuallyreadyourTermsandConditionsagreementinfull,youcanrelyonitifthere'severalegaldisputebetweenyouandacustomer. Thatsaid,likeanyothercontract,aTermsandConditionsAgreementneedsafewthingstoensureit'sfullyenforceableundercontractlaw. YourTermsandConditionsagreementmustbe: Lawful:Noonecanlegallysignacontracttocommitfraud,forexample Fair:Youcan'tputunreasonableorunfairdemandsoneitherparty Clear:Itmustbeobviouswhatthecontractisfor Agreedto:Thepartiesinvolvedmustconsenttothecontractbeforeit'senforceable ButdoeseverywebsiteneedaTermsandConditionsagreement,andisitreallythatbigadealifyoudon'thaveone? AmILegallyRequiredtoHaveaTermsandConditionsAgreement? No.However,it'sstillsmarttohaveaTermsandConditionsagreementinplace. Here'swhy: YoucanuseyourTermsandConditionstolimityourliabilityundercontract. TermsandConditionsletyouregulateuserbehaviorandconduct. It'seasiertoprovedeliberatecopyrightortrademarkinfringementifthere'sanintellectualproperty(IP)clauseinyourcontract. Youcaneasilyterminatesomeone'saccountwithoutexplanation,orwithholdaccesstoaservice,ifyou'vereservedthisrightinyourTermsandConditions. Thinkaboutitthisway.Ifyou'reaconsumer,whichbusinesswouldyoutrustmore:ThecompanywithaTermsandConditionsAgreement,ortheonewithout? AGuidetoWritingYourTermsandConditionsAgreement There'snoruleforhowlongyourTermsandConditionsagreementshouldbe.Italldependsonyourbusinessneeds. However,everyTermsandConditionsagreementshouldhave,atminimum,thefollowingclauses: Abriefintroduction Theeffectivedate Jurisdiction/governinglaw LinktoyourPrivacyPolicy Contactinformation Limitationofliabilityanddisclaimerofwarranties Rulesofconduct Userrestrictions Accountterminationinformation Dependingontheservicesyouoffer,youmightalsoincludeclauseson: Returnsandexchanges Thirdpartytermsandconditions Subscriptioninformation Paymentinformation Deliveryandshippingdetails 9CommonClausesforAllTermsandConditionsAgreements Let'stakealookatthe9clausescommontoallTermsandConditionsAgreements,startingwiththeintroductoryclause. Introduction Yourintroductionletspeopleknowthatthey'rereadingaTermsandConditionsagreement.It'swhereyoushouldemphasisethatanyoneusingyourwebsiteorplatformneedstoadheretotheterms. Here'sanexampleofafairlystandardintroductionclausefromUPS. There'snoneedtousecapitalletters,butsomecompanieswritetheirintroductionincapitalstodrawattentiontoit. EffectiveDate TherelevantdatetoincludeisthedatethatyourTermsandConditionsAgreementcameintoeffect. IfyouamendyourAgreement,youshouldchangethedatetothemostrecentdate.Or,youcankeeptheolddateandexplainthatsomechangescameintoeffectonthenewdate. Here'sanexamplefromHollister.IfthisisyourfirstTermsandConditionsAgreementforyourwebsite,simplychange"updated"to"effectivefrom." Jurisdiction/GoverningLaw Beclearaboutwhichcountryorstatelawsgoverntheagreementbetweenyouandyourcustomers.Usually,thisisthecountryorstatewhereyou'veregisteredyourbusiness. Forexample,customersshoppingwithH&MagreethatNewYorklawsgoverntheiragreementwiththecompany: ALinktoYourPrivacyPolicy Ifyoucollectpersonaldataofanykind,youlegallyneedtohaveandpostaPrivacyPolicy.Sincemostcompaniescaptureatleastsomepersonaldata,chancesarethisrequirementappliestoyou. It'simportantthatyoulinkyourPrivacyPolicysomewhereintheTermsandConditionsagreement.Thatway,you'reincorporatingthetermsofyourPrivacyPolicyintoyourlargerTermsandConditionsagreement. So,ifsomeoneconsentstoyourTermsandConditions,thismeanstheyalsoconsenttoyourPrivacyPolicy. Adidasdoesthiswell.ItlinksitsPrivacyPolicywithintheintroduction,whichmakesitreallysimpleforcustomerstofind: AdidasmakesitclearthattheTermsandConditionsandPrivacyPolicyshouldbereadtogetheraspartofalargerbindingagreementwiththecompany. ContactDetails Includeatleast2waysforcustomerstocontactyouiftheyhaveanyquestionsaboutyourTermsandConditions.Youcanchoosefrom: Emailaddress Onlinechatservice Telephonenumber Postaladdress Faxnumber It'sagoodideatoensureatleastonemethodofcontactisfreetouse,suchasatoll-freetelephonenumber.Levi's,forexample,includesapostaladdressandatoll-freenumber: It'sastandardpracticetoputthisclauseneartheendofaTermsandConditionsagreement.Youshoulddothis,sincecustomersareawarethattheycantypicallyscrolltothebottomofaT&Candfindcontactinformation. LimitationofLiabilityandWarrantyDisclaimers Whileyoucan'tlegallycontractoutofallliability,youwanttolimitwhatcustomerscanholdyouliablefor. Typically,youshouldrestrictliabilityfor: Viruses,spyware,anddevicedamage Inaccuraciesanderrors Damagecausedbythirdparties Furthermore,youshouldn'tmakepromisesyoucan'tkeep.Inotherwords,youneedadisclaimerwarrantingthatyou'renotresponsiblefor: Userenjoyment Productorwebsitedowntime Ensuringthatgoodsorserviceschosenbytheconsumerarefitforaspecificpurpose Finally,sinceyoucan'tcontractoutofallliability,youshouldsethowmuchapersoncansueyoufor. Gooddisclaimerclauseshandleallthesepointsclearlyandconcisely.TakethisclausefromRogueFitness,forexample. Injustafewsentences,thecompanyexplainsthat: Itprovidesservices"asis" Itdoesn'tpromisethatthegoodsorserviceswillalwaysmeetacustomer'sexpectations Itdoesn'ttakeresponsibilityfortyposanddescriptioninaccuracies Damagesarecappedathowevermuchacustomerspentonthepurchaseimmediatelybeforetheallegeddamageoccurred Thisclauseisspecificenoughtobeclear,butbroadenoughtoapplyinmostcircumstances. RulesofConduct You'llwanttosetoutrulesofconductforyourwebsite. Makeitclearthatcustomerscanonlyuseyourwebsite,goods,andservicesfortheintendedpurpose Setrulesforwhocanaccessyourservices Specifywhat'llhappenifsomeonebreachesyourterms Instagram,forexample,specifiesthatonlypeopleaged13andovercansignupfortheservice: TwitterreservestherighttosuspendordeleteuserswhobreachitsTerms: UserRestrictions Beclearaboutwhatuserscan'tdoonyourplatform.Keepthisclauseasbroadaspossiblesoyoucanquicklytakeactionagainstillegal,violent,orotherwiseharmfulbehavior. Here'sasimpleclausefromFacebook.It'sagreattemplatetofollowbecauseitcoversmostofthecommonbehaviorsthatbusinessesdeeminappropriate,includingfraudulentandmaliciousconduct: Theclauseisuser-friendly,jargon-free,andmostimportantly,clear. RighttoTerminateAccounts Reservetherighttodeletesomeone'saccountiftheyviolateyourTermsandConditions. IfyoumakeitclearinyourTermsthatyoucandeleteaperson'saccount,withoutnotice,forbreachingyourTerms,youreducethechancesofthemdisputingtheissue. Instagram,forexample,reservestherighttodeletesomeone'saccountiftheybreaktheplatform'srules,orifthepersonviolatessomeoneelse'sIPrights: Instagramalsosetsouthowuserscandeletetheirownaccounts. Nowthatwe'velookedatallthemainclausesyourTermsandConditionsagreementwillneed,let'stalkaboutwheretodisplayandandhowtomakeitenforceableonceyouragreementiscreated. DisplayingYourTermsandConditionsAgreement Youcan'tenforcetheTermsandConditionsAgreementifyourcustomersdon'tknowitexists.So,displaytheAgreementsomewhereobvioussothateveryonecanreadit. Thereare4commonplacestodisplayTermsandConditionsAgreement.Let'stakealook. WebsiteFooter MostwebsitesincludealinktotheirTermsandConditionsagreementintheirwebsitefooter.Normally,you'llfinditbesidevariousotherlegalagreementssuchasthePrivacyPolicy: ThisisagreatplacetoaddalinksinceyourusersknowtolookheretofindyourTermsandConditionsatanytime. LinksWithinOtherAgreements YoushouldmakeitaseasyaspossibleforcustomerstoreadyourTermsandConditions.ThatmeansincludingalinktoyourTermsandConditionsAgreementwithinyourotherkeypolicies. Ifyoucollectpersonaldata,theonepolicyyoumusthavebylawisaPrivacyPolicy.ManybusinesseswillputalinktotheTermsandConditionsAgreementswithinthePrivacyPolicysothatcustomerscanquicklynavigatebetweenbothimportantagreements. Here'showAmazondedicatesaclauseofitsPrivacyNoticetoitsTermsandConditions,orConditionsofUse: CheckoutScreen It'sagoodideatodrawattentiontoyourTermsandConditionsagreementbeforecustomerscompleteapurchase.Thatway,youcanassumetheyunderstandyourTermsandagreetothembeforecheckingout. Here'sanexamplefromGymshark.Byplacinganorder,customersareconsentingtotheTermsandConditions.Notethere'salsoalinktotheAgreementinthewebsitefooteroneverypage: LoginorSignupScreen YoushouldhighlightyourTermsandConditionsagreementbeforesomeonesignsupforanaccountonyourplatformorwebsite. NARSCosmeticsdrawsattentiontoallitskeypolicies,includingtheTermsandConditions,inashortblurbonthesignupscreen: It'salsoagoodideatoremindusersofyourTermsandConditionsbeforetheylogin.AllyouneedisasimplenoteexplainingthattheTermsandConditionsorTermsofUseapply. Here'sanexamplefromWaterstones: So,isitenoughjusttohighlightyourTermsandConditions,orisitbesttogetexplicitconsent? TermsandConditions:GettingConsent Themainwaysyoucanobtainconsentare: Impliedconsent("browsewrap") Expressconsent("clickwrap") ImpliedConsent Impliedconsentisoftensufficientifyou: PublishaTermsandConditionsagreement ClearlystatethatusingyourservicesmeansusersagreetoyourTermsandConditions,and PostlinkstoyourTermsandConditionsagreement Thecompanieswelookedatearlierrelyonimpliedconsent.However,ifyou'resellinggoodsorservicestoEU-basedcustomers,youneedexpressorexplicitconsent. Why?BecausetheGeneralDataProtectionRegulation(GDPR),thelawthatprotectsEUcitizens,doesn'talwaysrecognizeimpliedconsent.ExpressconsentisthenewEUlegalstandardandistheonlyformofconsentwerecommendyouuse. ExpressConsent Expressconsentmeansgettingcustomerstotakepositive,affirmativeactiontoshowthey'veacceptedyourTermsandConditionsagreement.Theeasiestwaytodothisisbyusingaconsentcheckbox. Here'saGDPR-compliantcheckboxfromHolland&Barrett'sUKwebsite: AndanotherexamplefromUrbanDecay'sUKwebsite: Conclusion EverywebsiteprovidinggoodsorservicesshouldincludeaTermsandConditionsagreement.Thislegallyenforceableagreementprotectsbusinessesbygivingthemcontroloverwhousestheirplatform,andhowit'sused. ATermsandConditionsagreementshouldincludethefollowing: Anintroductiontotheagreement Theeffectivedateoftheagreement Whichcountryorstatelawsapply Whotocontactformoreinformation,andhow Whatuserscanandcan'tdoonyourplatform Whenyoucanshutdownuseraccounts Disclaimersofwarrantiesandlimitationsofliabilities AlinktoyourPrivacyPolicy,andalinkbacktoyourTermsandConditionswithinyourPrivacyPolicy Putalinktotheagreementinyourwebsitefooter.Ifyouallowuserstocreateaccounts,linkyourT&Ctotheregistrationform.Ifyoutakepayments,includealinkonthecheckoutpage. UseacheckboxtogetconsenttoyourTermsandConditionsagreement. JenniferLaird PrivacyPolicies.comLegalwriter Lastupdatedon17May2022 Legalinformation,legaltemplatesandlegalpoliciesarenotlegaladvice.Pleasereadthedisclaimer. 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