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Need help with a Terms and Conditions?
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:
- 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
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
- 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.
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.
Meet some of our Terms and Conditions Lawyers
Octavia P.
I am a business law attorney with over 10 years’ experience and a strong background in information technology. I am a graduate of the University of California Berkeley, a member of the Illinois bar and a licensed lawyer (Solicitor) of England and Wales. I actively partner directly with my clients or indirectly, as Of Counsel, to boutique law firms to streamline business practices and manage legal risks by focusing on essentials such as - business contracts, corporate structure, employment/independent contractor agreements, website terms and policies, IP, technology, and commercial related agreements as well as business risk and compliance guidance.
November 23, 2020
Elizabeth C.
As an experienced contracts professional, I offer an affordable method to have your contracts reviewed! With my review of your contract, you can understand and reduce risks, negotiate better terms, and be your own advocate. I am an Attorney, Board Member, and Freelance Writer with a Bachelor of Arts degree, magna cum laude, in Film, Television and Theatre (“FTT”) from The University of Notre Dame. I was awarded The Catherine Hicks Award for outstanding work in FTT as voted on by the faculty. I graduated, cum laude, from Quinnipiac University School of Law, where I earned several awards for academics and for my work in the Mock Trial and Moot Court Honor Societies. Additionally, in my career, I have had much success as an in-house Corporate Attorney with a broad range of generalist experience and experience in handling a wide variety of legal matters of moderate to high exposure and complexity. My main focus in my legal career has been contract drafting, review, and negotiation. I also have a background in real estate, hospitality, sales, and sports and entertainment, among other things.
January 20, 2021
Elizabeth R.
Elizabeth is an experienced attorney with a demonstrated history of handling transactional legal matters for a wide range of small businesses and entrepreneurs, with a distinct understanding of dental and medical practices. Elizabeth also earned a BBA in Accounting, giving her unique perspective about the financial considerations her clients encounter regularly while navigating the legal and business environments. Elizabeth is highly responsive, personable and has great attention to detail. She is also fluent in Spanish.
December 7, 2020
Abby V.
Abby is an attorney and public policy specialist who has fused together her experience as an advocate, education in economics and public health, and passion for working with animals to create healthier communities for people and animals alike. At Opening Doors PLLC, she helps housing providers ensure the integrity of animal accommodation requests, comply with fair housing requirements, and implement safer pet policies. Abby also assists residents with their pet-related housing problems and works with community stakeholders to increase housing stability in underserved communities. She is a nationally-recognized expert in animal accommodation laws and her work has been featured in The Washington Post, USA Today, Bloomberg, and Cosmopolitan magazine.
December 29, 2020
Brit B.
First in-house counsel for small TX-based company operating in the Middle East. Experienced with drafting, revising, and editing a variety of domestic and international contracts.
January 4, 2021
Matan S.
Matan is an experienced M&A, corporate, tax and real estate attorney advising closely held businesses, technology start ups, service businesses, and manufacturers in purchases, sales, and other exit strategies. Matan works with founders and first-and-second generation owners to strategically transition businesses.
January 25, 2021
Sean D.
Accomplished and results-driven business attorney with extensive experience in commercial real estate / project finance, commercial transactions, and entity formations, that possesses a winning blend of subject matter expertise, skill in client relationship management, and practical experience. Leverages a unique mix of legal, strategic, and analytical expertise that consistently meets and surpasses client expectations. Specialties: Commercial Real Estate Law, Contract Negotiation, Entity Formation, Joint Ventures, Procurement, Lease/Buy/Sell Transactions, Business Consultations, Team Leadership, and Economic Development
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ContractsCounsel User
Create terms and conditions for a service business
Location: Georgia
Turnaround: Over a week
Service: Legal Drafting
Doc Type: Terms and Conditions
Number of Bids: 2
Bid Range: $1000 - $2000
ContractsCounsel User