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