What are Terms and Conditions?
Terms and Conditions (T&C) is a document that sets the rules under which your users can use the website or the app. They may also be called Terms of Service or Terms of Use. The user must accept them if they want to use the website or app.
Terms and Conditions is a “take it or leave it” contract offer from the business to the user.
If they accept it, the Terms and Conditions apply, and the user must behave accordingly.
If they don’t accept it, it doesn’t mean that the user can do anything they want on the website or the app. It means that they have accepted not to use the website or the app. The user has only two options: accept the T&C and stay, or leave.
When the user can access content for free, such as when they come to a blog to read an article, or use an app for free without creating an account, the mere use of the website or the app means implied consent to the Terms and Conditions.
If the user keeps on browsing the website or using the app, they indicate accepting the T&C. The business sets the rules and invites the user to use the website under those rules. If the user uses the website or the app, it indicates that they are fine with the terms. In legal terms, this is called a "browsewrap agreement".
On the other hand, when it comes to a purchase, you need to ask the user to accept the Terms and Conditions explicitly because you need to enter into an agreement with them. In such a case, the Terms and Conditions serve as a purchase agreement between the parties, and the business needs to ask the user to accept them explicitly. It is enough to ask them just to mark a checkbox. This type of contract is called a “clickwrap agreement”.
In some cases, businesses may have separate Terms and Conditions and a separate purchase agreement. In other cases, they may offer some clients a contract tailored to their specific business relationship. All parties are free to agree as they find fit.
Having a clickwrap agreement in place, such as a website Terms and Conditions makes things easy and simple for online businesses and their users. They are standard and non-negotiable. The user either accepts them or leaves.
The content in the Terms and Conditions largely depends on the specifics of your business and your products and services.
Ecommerce stores need to set the rules about the purchase straight. SAAS businesses need to define what the SAAS does and for what price. The T&C of a blog would revolve around intellectual property and disclaimers about the content.
In general, you’ll find the following elements in most T&C:
What the product/service is: The product or service provided needs to be clearly defined so that the user knows what they are paying for. Businesses benefit by setting clear limitations of what the user can expect to be provided with.
Eligibility: This section defines who can use the website or app. This, in general, may set out age limitations or geographical eligibility.
Rights and duties: The rights and duties of all parties involved (you and your users) need to be clearly defined, including expected behavior from both of you.
Intellectual property: Your website or app is full of your intellectual property, so you must explain to your users what they must not do.
Indemnification and limitation of liability: Businesses can mitigate the risks associated with operating a business by including provisions on indemnification and limitation of liability. It won’t save you from liability, but in the case of a dispute, it can significantly reduce your costs.
Governing law and dispute resolution: Disputes are not very common for online businesses, but if they happen, they may pose a risk to your business’ existence. That is why you need to set a governing law and a dispute resolution mechanism that suits you.
Business information: Tell your users who you are, including at least your company name and an email address where they can contact you.
As mentioned above, the T&C content varies greatly depending on the nature of your business. This list is not at all exhaustive.