You’ve most likely heard of the phrase ‘Terms and Conditions’ somewhere in your life – whether during a commercial, when signing a contract or when purchasing a product or service. However, not many people know what Terms and Conditions refer to exactly, and how relevant it is to everyday business operations. In this blog, we’ll detail what a Terms and COnditions agreement is, and why it is essential to every business.
What are Terms and Conditions?
In the context of a business, Terms and Conditions (T&C) refer to a legal agreement which sets out the rights and responsibilities for all parties involved in the business’ products and services. This includes internal employees of the business itself, as well as their clients and customers.
Terms and Conditions will often consist of:
- Definitions of key terms used in the business
- Explanations of the responsibilities for the business owner and business employees to their clients
- Explanations of the responsibilities for clients to the business
- What action can be taken in the case of a party member breaking the terms and conditions
- Details of the business’ intellectual rights.
Keep in mind that Terms and Conditions can also be referred to as Terms of Service (ToS) of Terms of Use (ToU). All three phrases can be used interchangeably and perform the same purpose for a business.
Why are Terms and Conditions important?
Although not compulsory, a Terms and Conditions agreement is incredibly important in protecting a business from dangers such as content and product misusage, stealing and misunderstandings with their clients.
Acting as a legally binding contract between the business and its clients, Terms and Conditions are important for:
- Preventing abuses. Terms and Conditions can include guidelines for actions for all involved parties, and consequences in the case that any one party abuses the business’ products and services in an illegal way.
- Retaining content ownership. Your Terms and Conditions will inform its readers that your business owns all of its content, so that your content is protected by both domestic and international copyright laws.
- Controlled termination. In the context of a business website, Terms and Conditions will allow you to terminate users who have violated your guidelines or you deem are unfit for your business. You can disable their business-related activities or ban them from your business completely.
- Limiting your liability. You can include a wide disclaimer in your Terms and Conditions to protect your business from any small errors that are made in your products or services. This disclaimer will make sure that your business is not held responsible in certain situations.
Who writes Terms and Conditions?
Now that we know how important a Terms and Conditions agreement is, we need to consider who can draft and write Terms and Conditions for your business. Although business owners can draft one for themselves, it is recommended that business lawyers are hired for the job, as they are well-practised in drafting Terms and Conditions for businesses of all industries and are less likely to make mistakes.
If you are looking to create a Terms and Conditions agreement for your business, be sure to consider how it benefits you, and consult with a trustworthy commercial lawyer.
