When creating a website for your business, it is essential that you have the correct documents in place. The three key legal documents you need for your business are a terms of use, terms and conditions and privacy policy. All these documents operate and protect your interests differently, though they are often confused for being similar. In this article, we will focus on a website terms of use document and the key clauses it should contain.
Terms of Use Document
A website terms of use document governs the use of your website by any visitor, whether or not they are an actual customer of your business. It sets out exactly how people can use your website and outlines any disclaimers relating to the content of the website.
This document is often confused with a terms and conditions. Your terms and conditions will govern your relationship with customers. It is a more specific agreement that contains clauses, including:
- a description of the goods and services you will provide;
- any warranties you are providing;
- whether customers can cancel their orders;
- how customers can claim a refund; and
- how your business will handle disputes.
Format of a Terms of Use Document
In its simplest form, you can place a terms of use document at the bottom of your website, alongside your terms and conditions and privacy policy. It is not critical for site users to expressly accept your website terms and conditions. Indeed, their continued use of your site may imply their acceptance of your terms and use. However, it is still critical that you place a link to your terms of use document in a spot that is easy for viewers to see. Essentially, you want to give your users enough notice to review the document.
Continue reading this article below the formKey Terms to Include
Intellectual Property
Your terms of use document may contain clauses around intellectual property ownership. Although this is not as critical as the intellectual property clauses in a services agreement, it is still beneficial to include.
Within this provision, you might outline who owns the intellectual property rights to content on the website, including any photos and videos, music or articles. You can also outline who will hold intellectual property rights to any content visitors post on your website. Ordinarily, you will have a licence to use anything that is posted on your website or may even have ownership of it, depending on how this clause is drafted.
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Disclaimers
Your terms of use may outline disclaimers you need to make. For example, your website may have links to third-party websites, some of which may earn you a commission. You should disclaim to your visitors that you are not responsible for the third-party links and that they should conduct their own research before clicking on anything.
You may also include a disclaimer that site visitors should not take any information on your website as advice, including legal, commercial or medical advice, if applicable.
Prohibited Conduct
Additionally, your terms of use document might list certain prohibited conduct. This is especially relevant if your website allows users to post any content. Some examples of prohibitions you may include are bans on the following actions:
- doing anything unlawful;
- uploading a third party’s information to the website;
- using the website to harass a third party;
- uploading any viruses to the website; or
- posting any public links to the website.
Limitations on Liability and Indemnity
Although limitations of liability and indemnity are more critical in terms and conditions documents, you may include some wording in your terms of use to protect yourself. You might include a limitation on your liability arising from a visitor’s use of your website or an indemnity for any claim that may arise if they breach the terms of use. This clause will ensure that the visitor has to compensate you for any harm, liability or loss you may suffer from their breach.
Disputes
You may also include a disputes clause in your terms of use. This clause should outline the process a party should take if they have an issue with your terms of use and how you will handle any disputes. It is also best practice to include the governing law which applies.
Often, the visitor will need to provide written notice to your business, detailing the dispute. The clause should also address when the visitor can expect to hear back from you, as well as the next steps in attempting to resolve the dispute.
Key Takeaways
If you are creating a website for your business, it is essential that you have the correct legal documents in place to protect yourself. For assistance drafting your website terms of use document or any other contract for your business, our experienced e-commerce lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.
Frequently Asked Questions
A terms of use document sets out how people can use the website and addresses any disclaimers relating to the website’s content. It applies to all website visitors.
Terms and conditions govern your relationship with customers. It is a more specific agreement that contains clauses, including:
- a description of the goods and services you will provide;
- any warranties you are providing;
- whether customers can cancel their orders;
- how customers can claim a refund; and
- how your business will handle disputes.
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