Clarity is provided by terms and conditions about what should happen in any given situation. Key commercial terms you are offering to your customers are provided by terms and conditions. It also helps the contractual parties to understand their duties, rights, roles, and responsibilities.
Importance of Terms And Conditions
Terms and Conditions are legally enforceable.
Although you can’t control whether customers actually read your Terms and Conditions agreement in full, you can rely on it if there’s ever a legal dispute between you and a customer.
Your Terms and Conditions agreement must be:
- Lawful: No one can legally sign a contract to commit fraud
- Fair: You can’t put unreasonable or unfair demands on either party
- Clear: It must be obvious what the contract is for
- Agreed to: The parties involved must consent to the contract before it’s enforceable
Is It Legally Required To Have Terms And Conditions?
No. However, it’s still smart to have a Terms and Conditions agreement in place.
- You can use your Terms and Conditions to limit your liability under the contract.
- Terms and Conditions let you regulate user behavior and conduct.
- It’s easier to prove deliberate copyright or trademark infringement if there’s an intellectual property (IP) clause in your contract.
- You can easily terminate someone’s account without explanation, or withhold access to a service if you’ve reserved this right in your Terms and Conditions.
Think about it this way. If you’re a consumer, which business would you trust more: The company with a Terms and Conditions Agreement, or the one without?
Guide To Writing Terms And Conditions
There’s no rule for how long your Terms and Conditions agreement should be. It all depends on your business needs.
However, every Terms and Conditions agreement should have, at minimum, the following clauses:
- A brief introduction
- The effective date
- Jurisdiction/governing law
- Contact information
- Limitation of liability and disclaimer of warranties
- Rules of conduct
- User restrictions
- Account termination information
Depending on the services you offer, you might also include clauses on:
- Returns and exchanges
- Third-party terms and conditions
- Subscription information
- Payment information
- Delivery and shipping details
Common Clauses For All Terms And Conditions
- Effective Date
- Jurisdiction/Governing Law
- Contact Details
- Limitations of Liability
- Warranty Disclaimers
- Rules of Conduct
- User Restrictions
- Tight to Terminate
That’s all in the terms and conditions article. It is prudent to have terms and conditions for your store.