Want to protect your business by setting your Terms of Use? Looking for a template? You’re in the right place. A Terms of Use Agreement defines guidelines and rules your users must agree to follow in order to use your service/product. It can save you a lot of trouble!
In this guide, we explain all you need to know about this legal document – from what it is, why it is important, what it should include, and how to enforce it. We provide a free Terms of Use Template for Website to get you started, and also cover great alternatives to consider like using a Terms of Use Generator.
Basic templates are usually not enough to protect your business.
As a legally-binding document, your Terms of Use must be professional and customized to your unique situation.
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Terms of Use are the guidelines and rules set by a website or service provider that users must agree to follow in order to use the service. These terms outline specific aspects like acceptable behavior, disclaimers, or limitations of liability, ensuring users understand their rights and responsibilities while using the website or service.
In practice, you can outline rules regarding the use of your content, the suspension of online accounts, or the age limit for purchasing your products.
You may have heard about Terms of Use under other names like “Terms and Conditions”, “Terms of Service” or “End User License Agreement” (EULA).
Yes, Terms of Use are a contract between you, the provider of a service, and your users. When users agree to the terms, typically when using the website, buying your products or clicking an “Accept” button, they enter into a contractual agreement with you. This contract binds the user to the terms specified, and violations can lead to termination of service or legal consequences.
This contract is formed within applicable law. Some specific requirements are set by consumer laws of different regions in the world, and you should comply with them. As an example, under EU consumer law, consumers have an unconditional right to withdraw (called “cooling-off period”) of 14 days.
A Terms of Use Agreement is not a legal necessity, unlike the privacy policy, which is often mandated by law. However, its importance cannot be overstated.
Terms of Use serve as a protective shield for you and your company:
For these reasons, Terms of Use are considered standard practice and remain an essential document for every business, from individual blog owners to large-scale e-commerce companies.
👋 E-commerce businesses? Listen up! Having a Terms of Use document is a no-brainer for this type of business. In fact, it contains legally-required disclosures regarding conditions of sale, payment methods, shipping, delivery, returns, withdrawals, and more. Learn more here.
You generally put a Terms of Use Agreement on your website, usually in a clearly accessible area. They are often linked at the bottom of the homepage or in the website’s footer. The latter is the recommended practice, since it ensures the document is easy to find and always visible from any page of the site in case users need to refer to it.
You can also find the document linked in a menu (that’s usually the case for mobile apps, under sections like “About” or “Legal”), or in the account creation/checkout forms.
Terms of Use vs. Terms and Conditions are basically the same thing and refer to the same document. They are used interchangeably, along with other names used to define this type of agreement, like “Terms of Service” or “User Agreement”. They can be used in different contexts but serve the same purpose.
A Terms of Use Agreement and a Privacy Policy have very different purposes. Terms of Use outline the rules and conditions for using your website or service, whereas the Privacy Policy describes how personal data is collected, used, and stored. Both are typically linked in the footer of a website, but they refer to unrelated matters.
Also, unlike Terms of Use, a Privacy Policy is a legal requirement under many data privacy laws like the EU’s General Data Protection Regulation (GDPR).
💡 Check out our Privacy Policy Template!
This section should succinctly introduce the purpose of the terms, providing a clear overview of what the document entails. This includes specifying what the terms apply to, as well as the effective date of the document.
The introduction might also give a brief insight into the nature of the company or service provider.
💡 The aim here is to orient the reader to the document and its relevance to their interaction with the service or product.
Here, you should emphasize that by accessing or using the service or product, users are agreeing to the terms outlined in the document. This section forms a contractual basis between the user and the service provider.
It often includes a statement that if the user does not agree to these terms, they should refrain from using the service. This part may also mention the legal implications of agreeing to the terms and might advise users to read the document thoroughly before consenting.
Here, you should reference to other legal agreements and policies that your company has. For example, your Privacy and Cookie Policy, directing users to review how their personal data is managed.
💡 The section should encourage users to review important documents like your Privacy Policy in detail.
Explain the process and requirements for users to create and maintain an account with the service. It should include guidelines on choosing secure passwords, maintaining account confidentiality, and updating account information.
Additionally, this part addresses the circumstances under which a user’s account may be suspended or deleted, such as violation of terms, fraudulent activity, or extended inactivity. The section can also explain the process of account termination, both voluntary (by the user) and involuntary (by the service provider).
This segment clarifies the ownership and use rights of all content and intellectual property (trademarks, copyrighted material) associated with the service or product. It can state that you retain all rights to their content, including text, graphics, logos, and software, with phrases like “All Rights Reserved.”
In this part you should outline the guidelines and rules for any content that users create, upload, or share on the platform. You should detail what is considered acceptable content and what is prohibited (e.g., offensive, illegal content in comments). You might also reserve the right to remove or modify user content that violates these guidelines.
The section may also include stipulations about how the service can use or redistribute user-generated content.
Here, it’s important to specify acceptable and unacceptable behaviors and activities on the service and website. It includes rules against misconduct such as scraping data from the service, unauthorized copying and pasting of content, and other forms of misuse.
The document should clearly articulate the consequences of such misconduct, which could range from warning to legal action.
💡 This part is crucial in setting the behavioral standards on the platform and ensuring a safe and respectful environment for all users. It acts as a deterrent against abuse and misuse of the service, safeguarding both the users and your company.
This section should detail the pricing structure, including any taxes or additional fees. It should clearly state any available offers or discounts, and the conditions under which they apply. It must outline accepted methods of payment, and any security measures in place to protect financial information. It should also address billing errors, and the process for disputing charges.
This part should specify the expected timeframe for delivery and any shipping costs. It should include any terms related to the condition of goods upon delivery, for example the “as is” clause, which indicates that items are accepted by the user in their current state without warranty. It must also outline the carrier’s responsibilities and any limitations of liability for delayed or damaged goods.
This section must clearly define the procedure for returning a product, including time limits and condition requirements. It should specify who bears the cost of returns and the method of refund or credit. The process for canceling orders should be detailed, including any applicable time frame and charges or penalties for cancellation.
💡Take a look at our No Return No Refund Policy Template & Guide!
Here you should articulate the rights of the user, particularly the right of withdrawal, which allows them to cancel a service or return a product within a specific period. It must be compliant with applicable consumer laws, detailing the process for exercising these rights.
This section should specify the guarantees or exclusions of implied warranties provided, particularly regarding conformity with advertised features, quality standards, and functionality. It can disclaim certain warranties, indicating that the service or product is provided “as is” and without warranties regarding its performance, reliability, or suitability for a particular purpose.
It must detail the remedies like indemnification or compensation against claims, damages, losses, liabilities, or expenses arising from the user’s misuse of the service or violation of the terms.
In this crucial section, you should explain the limits to your liability in cases of issues like damages or losses incurred by the user in connection with the service. It typically includes limitations on the type of recoverable damages and may cap the amount of compensation.
💡 The two sections above are essential for limiting your liability in case of issues arising from using your products, services or website.
Here, detail the specific process for resolving disputes between the user and your company. It may include mandatory arbitration clauses, specify the applicable law, and identify the jurisdiction under which disputes will be settled. Online, you can use the Online Dispute Resolution (ODR) platform provided by the European Commisson.
Describe the procedure for modifying these terms, including how changes will be communicated to users, and whether users have the option to terminate their agreement if they do not accept the new terms.
Provides your main contact details, including physical address, email, and phone number. It helps users to make inquiries, lodge complaints, or seek support.
Here’s an example of a basic Terms of Use template to get started. Its purpose is to provide a structure for your document, but it cannot serve as a comprehensive document, adapted to your specific case.
⭐ Want something better? Like a lawyer-crafted detailed Terms of Use Agreement fit to your business? We strongly recommend opting for a professional solution: jump to this section to learn more about our Terms of Use Generator.
The sections highlighted in yellow are instructions including examples that should be customized with relevant details tailored to your unique business situation.
Here’s the template:
These Terms of Use (“Terms”) are entered into by and between [Your Business], (“Company,” “we,” “our,” or “us”) and the user (“you” or “user”) of the [Service/Website/Product] (collectively, the “Service”). These Terms are effective as of [Effective Date].
By accessing or using the Service, you agree to be bound by these Terms. If you do not agree to these Terms, please refrain from using the Service. These Terms constitute a legally binding contract between you and the Company.
By accessing or using the Service, you acknowledge that you have read, understood, and agree to be bound by these Terms. If you do not agree to these Terms, you are not authorized to use the Service. These Terms govern your use of the Service and establish a contractual relationship between you and the Company.
Please review our Privacy Policy and Cookie Policy for information on how we collect, use, and protect your personal data.
To access certain features of the Service, you may be required to register for an account. You are responsible for maintaining the confidentiality of your account credentials and for any activity that occurs under your account.
We may, at our discretion, terminate or suspend your account if you engage in any of the following actions: [Here you should list all the reasons for account termination, such as engaging in fraudulent or unauthorized activities, creating multiple accounts for abusive purposes, providing false info during account registration, etc.]
In case of termination, you may lose access to your account and any associated data. We reserve the right to take legal action against individuals engaged in illegal or malicious activities on the Service.
All content and intellectual property associated with the Service, including text, graphics, logos, and software, are owned by the Company. All rights are reserved. You may not use, reproduce, distribute, or modify any content without our express written consent.
You may contribute content to the Service, subject to our guidelines. We reserve the right to remove or modify user-generated content that violates these guidelines.
Please adhere to the following guidelines: [Here, you need to list the guidelines users must adhere to in terms of: 1. posting prohibited content that could be considered offensive, discriminatory, hateful, or harassing, 2. respecting the privacy and rights of users, 3. engaging in false, misleading information, deceptive practices, 4. engaging in spamming, phishing, or any form of malicious activity.]
By submitting content, you grant the Company a worldwide, non-exclusive, royalty-free license to use, reproduce, and distribute your content.
You agree not to engage in any unauthorized activities, including [scraping data, copying content without authorization, or any other form of misuse]. We may take action against users who violate these Terms, including legal action if necessary.
Pricing information, shipping costs, including any taxes or additional fees, is detailed on our [dedicated page].
Customers must meet the minimum age requirement of [age limit] to make a purchase. We retain the discretion to decline service to anyone at any time. Our services are unavailable in locations where they are legally prohibited.
After an order is made, a confirmation email will be sent to the customer, outlining the items purchased and the total cost. [Your Business] holds the right to cancel any order before it is sent out, especially in cases of unexpected situations.
We accept various payment methods, including [Visa, MasterCard, American Express, and PayPal].
Please note that prices are subject to change without prior notice and do not include any applicable taxes.
[Still in this section, add all information related to delivery, cancellation, and returns. Outline that purchased products or services will be delivered within X business days, and specify in which regions delivery services are available. Clarify that order cancellations are allowed within X hours of order placement, provided the order hasn’t been dispatched.
State that products can be returned within X days from the date of delivery if they are in their original condition and packaging, and how to request a return. Specify that refunds will be processed using the original payment method within X days of receiving the returned item. Highlight that certain products might be exempt from this return policy, and this exemption will be clearly stated at the time of purchase.]
Users may have the right to withdraw from services or return products as permitted by applicable laws.
[Here you can state that your services are provided “as is” and “as available,” indicating no guarantees about performance and quality. Explicitly disclaim all implied warranties and highlight that your company does not guarantee things like the accuracy, completeness, or reliability of content, nor uninterrupted or error-free operation of services. Encourage users to use the services at their own discretion and risk.]
Unless otherwise explicitly stated and without prejudice to applicable law, no event shall our company (or any natural or legal person acting on its behalf be liable for any indirect, incidental, special, consequential or punitive damages, including without limitation, loss of profits, data, use, goodwill, or other intangible losses, resulting from [your use of or inability to use/access the service].
The European Commission has established an online platform for alternative dispute resolutions that facilitates solving disputes related to and stemming from online sale and service contracts.
As a result, any European Consumer or Consumer based in Norway, Iceland, or Liechtenstein can use such platform for resolving disputes stemming from contracts which have been entered into online. The platform is available at the following link.
We may modify these Terms at any time. We will notify users of changes, and continued use of the Service constitutes acceptance of the modified Terms. If you do not agree to the changes, you may terminate your agreement with us.
If you have any questions or concerns about these Terms, please contact us at: [Your Business] [Physical Address] [Email Address]
This is a general and basic Terms of Use template and must be customized to fit your specific circumstances and requirements. As mentioned, because these are legally-binding documents, we highly recommend consulting with legal experts or using a generator created by legal professionals to ensure compliance with applicable laws and regulations.
Take a look at Instagram’s Terms of Use Agreement. This is a great example about setting rules for users publishing and consuming content.
Read Udemy’s Terms of Use. This is a great illustration of the various sections we have seen in this guide.
Check out the eyewear brand Barton Perreira’s Terms and Conditions agreement. Placed in the footer, the document was generated with iubenda’s Terms of Use Generator.
The best way to enforce your Terms of Use Agreement is using a method called clickwrap. The goal is to make sure your users clearly agree to the document, which is important if you ever need to enforce these terms legally.
Follow this best practice to enforce your document:
These points provide a comprehensive foundation for understanding and drafting an effective Terms of Use document:
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