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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 contract 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:
- Real estate contracts
- End-user license agreement (EULAs)
- Software as a Service (SaaS) agreements
- Construction contracts
- Insurance contracts
- Employment contracts
- Financial contracts
- Information technology contracts
- Freelance contracts
- Healthcare contracts
- Service contracts
- Business contracts
- Entertainment contracts
Please note, the above list is not exhaustive and there are many more types of legal contracts that could be added.
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:
- Intellectual property rights
- Termination clauses
- Governing law clause
- DMCA notice clause
- Limitation of liability
- Enforceability clause
- Arbitration clause
- Confidentiality clause
- Indemnification clause
- Severability clause
- Definitions clause
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
- 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
- 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.
Meet some of our Terms and Conditions Lawyers
Sara S.
With over ten years of intellectual property experience, I’m happy to work on your contractual matter. I am very diligent and enjoy meeting tight deadlines. Drafting memoranda, business transactional documents, termination notices, cease and desist letters, licenses and letter agreements are all in my wheelhouse! Working in a variety of fields, from construction to pharmaceutical, I enjoy resolving any disputes that come across my desk.
Briana C.
Legal services cost too much, and are often of low quality. I have devoted my law practice to providing the best work at the most affordable price—in everything from defending small businesses against patent trolls to advising multinational corporations on regulatory compliance to steering couples through a divorce.
Craig Y.
Craig E. Yaris is a Managing Partner at Holon Law Partners, with the experience and drive to handle all your Franchise, General Business Practice, and Mediation needs. As a former small business owner and Chief Operating Officer of a franchisor himself, Mr. Yaris is passionate about promoting business growth. He has experience handling daily operations, employee disputes, and negotiations of pertinent contracts for a franchise company with 100 locations in five states, where he organized and conducted semi- annual meetings to educate and inform franchisees of best practices for improved growth. In addition, Mr. Yaris was responsible for the preparation and filing of the UFOC (Uniform Franchise Offering Circular) in several states and is well-versed in business formation. Between his time as Franchisor and Conflict Resolution Specialist, Mr. Yaris was the Co-Founder and Chief Operating Officer of an online company whose goal was to help inform marketers and business owners of the fast-paced and ongoing changes within their specific verticals. This experience helped him hone his research and writing skills and prepared him for the cloud-based aspects of Holon Law Partners. Mr. Yaris also has extensive experience in public speaking, as he has planned and delivered several keynote addresses and educational seminars for many New York-based organizations, and as a Continuing Education Instructor for Hofstra University. Prior to joining Parlatore Law Group, Mr. Yaris worked as a Patient Advocate, and more recently, a Conflict Resolution Specialist, where he mediated and resolved disputes on behalf of patients with insurance companies. In this role, he negotiated for coverage of previously denied medications and medical procedures as well as successfully mediated disputes between individuals and business partners which would have otherwise resulted in protracted litigation. In addition, he has experience mediating employer and employee disputes as well as helping resolve family conflict. He has also studied and attended many Non-Violent Communication (NVC) workshops and strives to bring these tools and methods to all of his mediations. His variety of experiences speak to his ability to handle small business needs at all stages of business growth and development. Mr. Yaris also has experience with business growth and development, as he has worked with several small business on creating and implementing strategies for steady growth. In addition, to spending time with family, Mr. Yaris volunteers his time helping spread the message of the ACLU and he supports many local charities focused on families and children. He is admitted to practice in New York.
Bobby H.
Bobby E. Hill, Jr. is a native of Tuscaloosa, Alabama and holds undergraduate degrees in music and business administration from Xavier University of Louisiana. He received his Juris Doctor from the University of Miami School of Law where he was a staff and articles editor for the school’s Race & Social Justice Law Review and a student attorney in the institution’s Immigration Clinic. In addition to freelancing, Bobby is currently a litigation associate at Johnson & Freeman, LLC, a boutique litigation firm in Atlanta, Georgia, where he practices in the firm's Condemnation, Probate, Real Estate Litigation, Real Estate Transactions, E-Discovery and Business and General Civil Litigation Practice areas. In this role, Bobby has acquired appreciable experience in drafting memoranda of law for partners and senior counsel, and all litigation related pleadings including pleadings related to dispositive motions, discovery, appeals, and other post-judgment relief.
Jessica M.
Jessica Molligan is an attorney with twenty years of experience in family law, bankruptcy, and litigation.
July 17, 2023
Christine T.
Christine E. Taylor focuses her practice in the areas of Hospitality Law, Business Law, Labor and Employment Law, Real Estate Law, Administrative Law, Estate Law and Litigation. Ms. Taylor grew up within the campground industry, working at parks in both the Yogi Bear’s Jellystone Park Franchise and the Kampgrounds of America Franchise. Armed with two decades of experience, Ms. Taylor is quick to point out the legal issues that apply to outdoor hospitality business owners. She has provided a wide variety of services to campgrounds, RV Parks, and glamping venues, including seasonal licenses, waivers, employment contracts, real estate services and even litigation services as needed.
June 22, 2023
David U.
I help clients with: buying and selling commercial properties including multi-family and office projects, subdivisions, retail shopping centers; and negotiating leases for retail and office landlords, retail tenants and office tenants. Over 23 years I've honed my skills by running deals at an Amlaw-100 firm, an elite real estate boutique in Aspen, Colorado and a few highly regarded national firms based in Denver, Colorado, before starting my own solo practice in 2016. Since 2016 I've been helping my clients with real estate and business deals. I'm a commercial real estate and business expert with a passion for helping clients forge successful ventures in an efficient and understandable manner.
Find the best lawyer for your project
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Terms and Conditions
Florida
Are there terms and conditions templates?
I am starting a business and I need to create a set of terms and conditions for my customers. I have been researching online, but I am overwhelmed with the amount of information available and I am not sure what the best approach is. I am hoping to find a template to help guide me in the right direction.
Diane D.
Yes. However, a template is a general, non-specific document. Specifying it to your needs can be tricky. You should have a lawyer do it for you because they are trained to limit any liabilities and risks your company may have. It's better to spend the money upfront, then try to get out of a mess letter, which will be much more expensive, especially if you get sued.
Contracts
Terms and Conditions
Florida
Why are terms and conditions long?
I am a small business owner who is in the process of creating a website for my business. I have been researching terms and conditions for websites, and I noticed that most of them are very long. I want to make sure that my terms and conditions are comprehensive to protect my business, but I am worried that if they are too long, customers may not read them. That is why I am asking why terms and conditions are so long.
Diane D.
Because every type of situation needs to be covered to protect you. That cannot be done in a paragraph or two.
Contracts
Terms and Conditions
Florida
Are digital terms and conditions enforceable?
I am a small business owner who is in the process of launching a new website. I am looking to create a Terms and Conditions page for visitors to my website, but I am unsure if digital Terms and Conditions are legally enforceable. I am looking for advice on how to best create a Terms and Conditions page that is legally binding and enforceable.
Diane D.
Yes, digital terms and conditions are legally enforceable. The best way to create them are to have a contract attorney draft them for you.
Business
Terms and Conditions
Texas
Are terms and conditions legally binding?
I recently started a business and I am in the process of creating a website for it. As part of the website, I am creating a Terms and Conditions page. I want to make sure that the Terms and Conditions are legally binding so that if I ever need to take legal action against a customer, I am protected. I have read some articles about Terms and Conditions, but I would like to get a professional opinion on the matter.
J.R. S.
Yes, terms and conditions on a business website can generally be enforceable against consumers. The enforceability of terms and conditions on a business website against consumers is not straightforward and depends on various factors, including the type of agreement used, the presentation of these terms, the consumer's acknowledgment of these terms, and the specific provisions within these terms. However, the enforceability primarily hinges on how these terms are presented and whether the consumers were given reasonable notice of these terms. There are three types of electronic form agreements typically used by websites to incorporate terms and conditions: "click-wrap", "browse-wrap", and "sign-in-wrap" agreements. "Click-wrap" agreements necessitate the user's express assent to the terms and conditions by clicking a button that reads "I Agree" or some other method of explicit agreement. In these cases, the consumer is presumed to be aware of the additional terms and conditions and consciously chooses to proceed with the transaction. "Browse-wrap" agreements include terms and conditions either posted on the website, a hyperlink, or are accessible on the screen, but do not require the user's express assent. The validity of these agreements depends on whether a website user has actual or constructive knowledge of a site's terms and conditions prior to using the site. "Sign-in-wrap" agreements involve notifying users of the existence of the website's terms and conditions and advising them that they are agreeing to the terms when registering an account or signing in. Courts usually enforce these agreements when the notice of the terms was "reasonably conspicuous." This can include situations where a hyperlink to the terms and conditions is present on nearly every webpage of the company's website, or when the webpage from which the user indicates their assent contains a conspicuous hyperlink to the agreement. However, there are exceptions to the enforceability of these terms and conditions and much depends on the type of business you are and the specific terms and conditions that you impose on consumers through your website.
Web Design
Terms and Conditions
Texas
How often to review terms and conditions?
I am the founder of an e-commerce business and I am in the process of creating Terms and Conditions for our website. I want to ensure that our Terms and Conditions are up to date and legally sound. I am wondering how often I should review and update the Terms and Conditions to ensure that they are still valid and applicable to our business.
Darryl S.
At lease once a year, you should revisit you Ts and Cs to address any changes to your business model or new laws that may apply to your business.
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Terms and Conditions
Location: California
Turnaround: Over a week
Service: Contract Review
Doc Type: Terms and Conditions
Page Count: 3
Number of Bids: 3
Bid Range: $500 - $800
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