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Things you need to know about Website Terms of Use.


1. What is a Terms of Use?

The terms of use is an agreement that a website user must abide by in order to use your website. It specifies the rules governing (a) how users can use your website; (b) what relationship exists between the user and your business; (c) how and why you may suspend or ban people from your website; and (d) avoidance or management of any potential legal issues.

A well-crafted terms of use might cover such areas as payment, taxes, refunds, gift certificates, accounts, as well as details about your business services, privacy policy, disclaimer, warranties, limitations on liability, etc. 


2. When do you need a Terms of Use?

You need a terms of use if you have a website and you want to explain how your website works and its prohibited uses. The terms of use is a simple and effective way to help your business avoid legal issues and is thus highly recommended.


3. How can a Terms of Use protect you?

A properly drafted terms of use protects against potential claims that may arise from website users. A court is also more likely to enforce a well-drafted and easily accessible terms of use. That's why it is crucial that the terms of use clearly describe to users what is and is not permitted on your website.

In particular the terms of use can: (a) mitigate your liability arising from your website; (b) define the permitted conduct on your website; and (c) set up an indemnification process in case a website user violates a third person’s rights.


4. What information do you need to create a Terms of Use?

To create your terms of use you’ll need the following minimum information:

  1. The details of the business (i.e. name, address, email and telephone number)
  2. The URL / internet address of the website
  3. Whether or not you will sell and hold promotions (i.e. discounts, sweepstakes) on the website
  4. Whether or not other merchants/sellers are allowed to sell and/or advertise on the website
  5. Whether or not the website has a Privacy Policy and, if yes, the URL / internet address of the same
  6. Whether or not a website user is allowed to post content (i.e. blogs, videos) and submit comments on the website
  7. The maximum amount of damages you can be held liable for to a user of your website

Related Documents.

Activities that involve a Website Terms of Use sometimes use the following documents. You may be interested in them:

Document Name