What is a terms and conditions agreement?

Terms and conditions, often abbreviated as T&Cs, are essentially the ‘rules of engagement’ between a business and its customers (You might also see them called terms of use or terms of service).

They set the rules for user behavior by instructing users on how to use a businesses services correctly, be it on their app or website. They also inform users about how the business will respond if a user breaches their terms and conditions.

You’ll typically encounter a terms and conditions in the form of an agreement or contract when you sign up for a service online. Before you can use the service, you’ll be required to read the provided terms and agree to them.

What is included in a terms and conditions agreement?

A terms and conditions agreement should contain:

• A section defining keywords and phrases in the agreement
• An outline of user rights and responsibilities
• A definition of acceptable use and prohibited activities
• A statement on user accountability for online conduct
• An explanation of payment terms and fee structures
• An account termination process and opt-out procedures
• A dispute resolution process and arbitration clause
• A limitation of liability and disclaimer of warranties
• A Shipping & returns policy

Is a terms and conditions legally binding?

Yes, a terms and conditions agreement is a legitimate contract and therefore legally binding.

Do any countries require I have a terms and conditions agreement on my website?

Yes, countries with strict consumer laws may require you to have a terms and conditions if you meet certain criteria.

For example, in Australia, consumer protection requirements state that all ecommerce websites must khave a terms and conditions agreement. If you ignore the requirements, then the ACCC (Australian Competition & Consumer Commission) can issue your website a penalty.

What's the difference between terms and conditions, terms of use and terms of service?

Terms and conditions (T&C), terms of use (ToU) and terms of service (ToS) are all different names for the same document.

You might also see a terms and conditions agreement referred to as:

• A User Agreement
• A Service Agreement
• Usage Terms
• Conditions of Use
• Legal Terms
• User Terms
• Service Terms

How often is the Terms and Conditions Generator updated?

We update our terms and conditions generator several times each year. If there are any changes in the law, we’ll give you a heads-up that your policy needs a refresh. This (in our opinion) a big plus when you think about how much a lawyer would charge to update your documents annually.

Does every business need terms and conditions?

Unlike a privacy policy, having a terms and conditions agreement isn’t often ‘legally’ required, but having one is absolutely in your best interest. It protects you and your business from potential issues that may arise from the use or misuse of your product or service. By not providing a terms and conditions agreement, you are giving your users complete freedom to do as they please with your product or service, including deciding when they want to pay for it.

Without a terms and conditions agreement, you open yourself up to:

• Legal Disputes
• Unpaid Invoices
• Data Breaches
• Intellectual Property Theft
• Service Misuse
• Refund Disputes
• Chargebacks and Fraud
• Regulatory Penalties
• Reputational Damage
• Unmanaged Expectations

If you are running a business without a terms and conditions agreement in place, creating one should at the very top of your to-do list.

Can I write my own terms and conditions?

Yes, writing your own terms and conditions agreement is perfectly normal, and totally legal, thousands of businesses do it. If you want to write your own, just make sure that your customers read and agree to it, and you have yourself an enforceable contract.
The main reason you might want to use a terms and conditions generator or consult a lawyer are:

1. Time
2. Peace of mind

Are you happy to take time carefully considering whether you’ve included all the necessary clauses to cover yourself and your business? If you’re on the fence, save yourself the headache and try our terms and conditions generator. If you’re not satisfied, we’ll give you a full refund.

Where should I put my terms and conditions agreement on my website?

Most online businesses publish a new page specifically for their terms and conditions, we recommend you do the same. We also recommend linking to the page from the footer as this is where most people expect to find it.

How often should I update my terms and conditions agreement?

We recommend reviewing your terms and conditions once a year, and any time you change your products or services. This gives you time to think of any new rules to add and keeps your contract up to date. Just remember to let your customers know if you make changes – they’ll need to agree to the new version to keep it enforceable.

What's the difference between a Terms & Conditions and a Privacy Policy?

Terms & Conditions and Privacy Policies are two very different legal documents.

Terms and conditions are all about instructing and protecting the interests of the business. They outline the rules and guidelines for using a website or service and establish the legal relationship between the provider and users.

Privacy Policies are all about informing and protecting the interests of the users. They inform users about how a company handles any personal information.

What's the difference between a Terms & Conditions and an End-User License Agreement (EULA)?

Terms and conditions and EULAs have many similarities, but there are some pretty clear differences between them.

A terms and conditions agreement typically applies to customers using a business’s services, while a EULA is specifically for those using licensed software. Many businesses have both T&Cs and a EULA.

• A Terms and conditions agreement is a legal contract between a service provider and a person who wants to use that service. It covers the terms for using the service.
• An end-user license agreement is a legal contract between a software supplier and the end-user / customer. It covers copyright, usage limits, and permissions.

We recommend all businesses have terms and conditions agreements. Of those businesses, we recommend any that publish software also have a EULA.

How can I make sure my website's terms and conditions are enforceable?

As with any contract, you need to tick a few boxes for it to be enforceable.

• There needs to be mutual agreement from both parties
• There needs to be an offer and an acceptance of the terms.
• The terms need to be fair
• Both parties need to understand the agreement

To do this, we recommend that you display your terms and conditions to your users in a simple popup window. Include a tick box at the bottom for users to accept the terms. At a minimum, this confirms that your users have seen the terms and know they’re agreeing to them.

Want to further encourage your users to read your terms and conditions? Remove the ability to tick the ‘I agree’ tick box until the user has scrolled to the end of your terms and conditions statement.

What would be considered 'unfair' terms and conditions?

Unfair contract terms give one person a lot more power or benefits than the other, without a good reason. For example, contract terms might be unfair if they:

• Create a big difference in what each person can do or must do in the agreement
• Aren’t needed to protect the interests of the person who benefits from the term
• Could hurt the other person financially or in other ways if they’re enforced

Some examples of terms that might be unfair:

• Terms that let one person (but not the other) avoid or limit their responsibilities in the contract
• Terms that let one person (but not the other) end the contract
• Terms that punish one person (but not the other) for breaking or ending the contract
• Terms that let one person (but not the other) change what’s in the contract

In countries with strict consumer protection laws – such as Australia – using or relying on unfair contract terms can result in significant penalties.