TERMS & CONDITIONS
Creating a Terms and Conditions Policy
Terms and conditions (“Terms”) are a set of legal terms defined by the owner of a website. They set forth the terms and conditions governing the activities of the website visitors on the said website and the relationship between the site visitors and the website owner.
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Terms must be defined according to the specific needs and nature of each website. For example, a website offering products to customers in e-commerce transactions requires Terms that are different than the Terms of a website only providing information.
The Terms are an agreement between the website owner and the users of the website; they detail the policies and procedures conducted by the website. In many ways, the Terms provide the website owner the ability to protect themselves from potential legal exposure.
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In addition, there are legal obligations to notify the website users of such activities, and in many cases the Terms are the place to do so.
It is therefore very important and highly recommended for websites to have clear and comprehensive Terms that are adjusted and tailored to the specific website and its activities.
What should you cover in your Terms?
The following is a list of issues that are typically dealt with in Terms for websites. Of course, some of the issues may not be relevant to your website (e.g. refund policies are not relevant for a website that does not sell anything) and there may be terms required for your website that are not mentioned below. The following is only a limited, high-level outline and illustration of main issues typically dealt with in Terms for websites.
Website owner, the offering, and binding of Terms
As in every agreement, the Terms need to clearly state the owner of the website, what the website offers and the Terms being a binding agreement upon the users of the website. If the website is operated by a legal entity, it is important to state the full and precise name of such entity (and not the commercial name used for business activity). It is also important to define what is offered on the website and to state that the Terms are a legal agreement controlling the use of the website by visitors and users of the services.
What should you cover in your Terms?
The following is a list of issues that are typically dealt with in Terms for websites. Of course, some of the issues may not be relevant to your website (e.g. refund policies are not relevant for a website that does not sell anything) and there may be terms required for your website that are not mentioned below. The following is only a limited, high-level outline and illustration of main issues typically dealt with in Terms for websites.
Who can use your website; what are the requirements to create an account
You must define who is entitled and who is permitted to use the website and the services, and when relevant, what the requirements are for opening an account.
Key commercial Terms offered to customers
If the website includes sale of products and/or services, the Terms must include the main commercial terms for purchasing or licensing of such services. For example, if the website offers subscriptions to a product or service, the Terms need to define the terms of such licensing, the payable fees, and terms of subscription renewal. If the website offers physical products or goods, the Terms should define general supply terms (such as shipment, returns and product warranties).
Return and refund policy
Online businesses selling products are required to present their product return policy and refund policy. This is important in order to comply with consumer protection regulations. It avoids claims by customers that are not satisfied with products they purchase. Please note that many websites dealing with sale of physical goods establish a refund policy as a separate document. This normally includes more instructions and information on the procedures for returns and refunding.
Retention of right to change offering
It is important to be able to change the offering on and/or through the website without being exposed to claims by the users of the website. Accordingly, Terms should include wording allowing the owner of the website to freely change the services and products offered on the website.
Warranties & responsibility for services and products
Websites offering services or selling products usually define their responsibility in relation to the services or products they are offering. Such responsibilities typically include warranties granted by the website operator and should be in compliance with local consumer protection laws. We recommended verifying such obligations with a professional.
Ownership of intellectual property, copyrights and logos
In order to protect the rights of the website owner in its content, materials and products, it is important to include wording retaining all rights and emphasizing that the visitors and the customers of the website are not granted any such rights.
Right to suspend or cancel user account
Websites need to be able to avoid misuse of the website by users and/or avoid exposure as a result of illegal activity conducted on the website (or by using a service or product offered by the website). Accordingly, websites offering subscription services or online services (such as SAAS) usually retain the ability to suspend or cancel the ability of a user or customer to use the website or the services.
Indemnification
Websites must have the ability to seek indemnification from users and customers that cause damages to the website or its owners. The indemnity obligation is usually addressed in the Terms. The indemnification obligations need to be adjusted and be made fit to the potential exposure of each website according to its specific activities.
Limitation of liability
It is important to limit and fence the potential liability that the website owner may face as result of its business activities. Such limitations must be in compliance with local applicable laws (which may limit the ability to reduce liability).
Right to change and modify Terms
In order to be able to change your Terms without requirement to receive the consent and approval of the Users, we recommend retaining the ability to change or modify the Terms at the website Owner’s will.
Promotional emails and content
Many countries require that you receive the consent of your users before sending them promotional messages. The form of such consent and the legal requirements vary from country to country and therefore we recommend that you seek legal assistance on this subject.
Preference of law and dispute resolution
It is important to define the laws and regulations under which the website and the business activities are acting. It is common to define the location of the courts that have jurisdiction over disputes between the website owner and any customer or user. Some Terms include provisions enforcing arbitration procedures as the sole dispute resolution mechanism. It is also possible to waive certain legal proceedings (such as a jury trial or class actions).
Customer support details & contact info
Terms are expected to have contact information enabling users and customers to receive customer support services and to correspond with the website and its operators.
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