Terms and Conditions

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Terms and conditions are the vital details that businesses put in place to ensure that they protect their rights. However, you should also ensure that they are legal, enforceable, and serve their intended purpose. Otherwise, you leave your company exposed to legal liabilities or unwanted consequences.

Rather than leave your contracts to best guesses, check out the information below to learn more about terms and conditions.

What are Terms and Conditions?

Terms and conditions are part of a that ensure parties understand their contractual rights and obligations. Parties draft them into a legal contract, also called a legal agreement, in accordance with local, state, and federal contract laws. They set important boundaries that all contract principals must uphold.

Types of legal contracts that contain terms and conditions include:

Several contract types utilize terms and conditions. When there is a formal agreement to create with another individual or entity, consider how you would like to structure your deal and negotiate the terms and conditions with the other side before finalizing anything. This strategy will help foster a sense of importance and inclusion on all sides.

What’s Included in Terms and Conditions

Terms and conditions are very broad in the abstract sense. However, they contain more specific provisions depending upon the contract size, industry, and complexity. You will find that there are standard components included across several types of terms and conditions.

Terms and conditions may include:

Each one of these terms and conditions has a purpose. Some agreements require certain provisions, while others do not. The only way you can be sure about your terms and conditions requirements is by discussing your project with a contract lawyer .

Purpose of Terms and Conditions

The purpose of terms and conditions is to provide a set of instructions for all parties of a contract. They also offer guidance to courts regarding the intent and purpose of the transaction at the time it was created.

Elements of terms and conditions may include:

  • Rights
  • Obligations
  • Duties
  • Roles
  • Responsibilities
  • Consideration
  • Contact info
  • Signature lines
  • Handling disputes
  • Important dates
  • Deliverables
  • Payment terms
  • Limitations

Terms and conditions exist to inform people of their rights when engaging in a business transaction. They carry legal implications of which both parties should be aware. Carefully review all contracts before signing them since many do not let you cancel them without penalty before fulfilling your obligations.

Terms and Conditions vs. Terms of Service

Terms and conditions and terms of service are different. Using them interchangeably will result in legal errors or miscommunications. Avoid this situation by reviewing their definitions separately.

Below, check out the differences between terms and conditions vs. terms of service.

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Terms and Conditions

Terms and conditions refer to the contractual rights and obligations of a party to any contract. They refer to the broader concept of guidelines that parties must follow in an agreement. Your business can create them for any formalized business agreement.

Terms of Service

In contrast, terms of service, also referred to as terms of use, are the eCommerce terms and conditions surrounding the use of a service or application and must comply with the General Data Protection Regulation (GDPR) guidelines. Software companies utilize them more often than other industries. Use terms of service when your company offers a business service, too.

Examples of Terms and Conditions

Terms and conditions are essential for any type of formal relationship. If you want to protect your legal rights, remember to always get it in writing. Otherwise, it’s your accusation against the other party in case a future dispute arises.

Examples of when to use terms and conditions include:

  • Engaging in business with others
  • Working for a company as an employee
  • Selling products to consumers online
  • Organizing a sweepstakes or lottery for participation
  • Selling policies an insurance provider
  • Offering services as a real estate professional
  • Providing services as a construction contractor
  • Building websites for customers
  • Drafting a prenuptial agreement for high net worth couples
  • Lending money or offering services to bank customers
  • Privately selling your car to another person
  • Hiring a freelancer through a job talent marketplace
  • Taking people out on adventure excursions commercially
  • Renting out hotel rooms to consumers
  • Including a warranty with a consumer product

There are several reasons to include terms and conditions in a transaction. The rule of thumb is to incorporate them into your deal when providing a service or dealing with a sale in excess of $500. You should also utilize them when required by your industry or professional licensing organizations.

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Getting Help with Terms and Conditions

Your business must write airtight terms and conditions. An effective agreement mitigates the chances of a dispute and costly litigation. Ensure that an attorney drafts and negotiates your contract when getting help with terms and conditions.

These are a few other reasons that you will want to work with an attorney:

Reason 1. Understands Contracts

Poorly drafted contracts don’t perform as intended. Your attorney will review your situation to determine which provisions you should include in your agreement. They can also participate in negotiation discussions with the other party throughout the process if desired.

Reason 2. Guarantees Enforceability

If your terms and conditions are unenforceable, then they don’t serve your purpose. Your attorney has command of relevant contract laws to prevent this predicament from arising. It’s their job to guarantee that you walk away with an enforceable contract.

Reason 3. Knows Contract Law

Terms and conditions are subject to common contract laws. They must also comply with local, state, and federal laws. Whether you operate one or multiple locations, hire an experienced attorney to help you navigate this aspect of your agreements.

Reason 4. Prepared for a Dispute

It’s reassuring when someone understands your business’ legal history. Contract lawyers are also ready to handle a legal dispute if you face one down the road. They can help you renegotiate terms in case things change or fight them out in court.

Avoid Making Legal Mistakes

As you can see, the most proactive way to get legal help is by speak with contract attorneys. It is tempting to use boilerplate templates, but keep in mind that these agreements were created for another business at one point. Avoid inadvertent legal mistakes that can cost you your company by seeking advice from a licensed professional.

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Meet some of our Terms and Conditions Lawyers

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I joined Enterprise Law Group, LLP as an Associate in March 2020. My practice has involved a wide range of legal matters from commercial real estate, finance and international business transactions to litigation matters including commercial disputes, personal injury and medical malpractice. Proficient in Spanish, I graduated from the University of Kentucky College of Law, the Patterson School of Diplomacy and International Commerce, and the University of Southern California. Prior to my legal career, I sought diverse professional experiences. After graduating from college, I orchestrated my own volunteering experience in southern Peru with a small non-profit organization. Later I gained valuable professional experience as part of a U.S. Senate campaign, and after that I joined the public policy team at Greater Louisville, Inc., Louisville's Chamber of Commerce affiliate. Prior to law school, I embarked on a month long excursion with the Northern Outdoor Leadership School in Alaska, which gave me a new found appreciation for sustainability.

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Agnes Mombrun Geter is the Founder and Managing Attorney of Mombrun Law, PLLC. She is an experienced attorney and is a member of the Florida Bar, New Jersey Bar, and the Pennsylvania Bar. The firm's practice focuses on Estate Planning, Business Law, and Debt Settlement including IRS Debt Relief. The firm's goal is to simplify the law and provide clients with the confidence and information necessary to make their decisions. The firm also provides project-based legal services to other attorneys and law firms, along with assisting as personal counsel and local counsel on legal matters.

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Have over 40+ years of corporate and commercial law experience.

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I am a business attorney with years of experience advising individual entrepreneurs and small businesses on issues ranging from entity selection/formation to employment law compliance, to intellectual property protection and exploitation. I often act as General Counsel for my clients fulfilling the legal function as part of a team of managers. I look forward to learning more about your business and how I may be of assistance.

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Forest is a general practice lawyer. He provides legal advice regarding small business law, contracts, estates and trusts, administrative law, corporate governance and compliance. Forest practiced complex commercial litigation in Florida for eight years, representing clients such as Host Marriott, Kellogg School of Business, and Toyota. Since moving to Nashville in 2005, he has provided legal advice to clients forming new businesses, planning for the future, and seeking funding through the use of equity and/or debt in their businesses. This advice has included the selection of business type, assistance in drafting and editing their business plans and offering material, reviewing proposed term sheets, and conducting due diligence. Forest is a member of the Florida, Tennessee, and Texas Bars; in addition. Forest has held a Series 7, General Securities Representative Exam, Series 24, General Securities Principal, and Series 63, Uniform Securities Agent State Law.

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