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If your business has a website or an app, you must have a terms of use document. This will establish user expectations and limit what your business is responsible for. Often, this is similar to terms of use for traditional physical businesses. However, due to the unique nature of websites, you must tailor the terms of use to suit the digital environment. This article will explain the purpose of a terms of use document to ensure your business can protect its commercial interests.
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What is a Terms of Use Document?
There are many names for this type of document, including:
- user agreement;
- terms of service;
- accepted use agreement; and
- website terms and conditions.
Whichever name you use, the document confirms the legal position between your company and those accessing the website. Most documents clarify that users cannot continue using the website unless they agree to the terms. This is similar to a football ticket having terms and conditions printed on the back, such as not drinking alcohol on the premises. By entering the stadium with that ticket, the attendee agrees to those terms.
What Should Be in a Terms of Use Document?
The information you include in a terms of use document depends on the unique nature of your website or app. Generally, terms of use should outline user expectations and what your business does and does not control.
A website may require users to be adults, for example, because it pertains to alcohol or gambling. Therefore, the website terms of use should state that all users must be 18 years of age. You may notice these types of websites will have a pop-up window asking you to confirm your age. Additionally, the discretion to ban users allows your business to deal with individuals who spread offensive or abusive messages through the website or messaging services.
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Do Courts Enforce Terms of Use Documents?
Courts tend to recognise terms of use documents as legal contracts. Therefore, they will enforce them within a dispute as long as the document has:
- reasonable, lawful clauses;
- precise, understandable wording; and
- the user agrees to it.
The last point is why most terms of use agreements state that continued use of the website counts as acceptance of the terms and conditions. Additionally, such clauses avoid irritating customers by having a pop-up window asking for consent to the terms of use upon each visit. You may notice that some websites ask you to create a user profile with your email address and only ask you to accept the terms of use the first time. After that, those websites will simply have to update you, usually by email, when the terms of use are updated.
Key Takeaways
A terms of use document acts as a rulebook for users whilst using your website. You should tailor your document to the unique aspects of your website or app to ensure they adequately outline how your business operates. The terms of use document bears legal significance. Therefore, it is worth having a professional draft your company’s user agreement.
If you need help with a terms of use document, our experienced contract lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.
Frequently Asked Questions
No. However, for the above reasons, having a terms of use document is highly recommended and can be helpful in future court action relating to your website.
Yes. In general, courts do not usually enforce clauses that are intentionally vague, misleading, or seek to abuse the user’s trust.
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