A terms of use agreement serves as a contract between the operator of a website and a user of the website, essentially allowing the operator to set ground rules for the use of the website. These agreements have become almost a necessity for website operators because they help show that users understand how they are allowed to interact with the website and that they have agreed to adhere to those parameters of interaction. Therefore, any business with an online presence should consider including a well-crafted terms of use agreement for several reasons.
The agreement can help protect the content of your website
Within a terms of use agreement, the operator can inform users about how they can use the website and how they can not use a website. Additionally, if the website allows account registration, the agreement may include a termination clause, which allows the operator to terminate the account and ban the user from the site, usually at the operator’s sole discretion.
A terms of use agreement may also limit the operator’s liability by denying that the operator is not liable for errors found in the website’s content or by limiting liability to the amount the user paid for the website’s services. You may disclaim warranties of fitness or merchantability that might otherwise apply to products sold by the Website.
Finally, the terms of use agreement may determine the jurisdiction that will govern the interpretation and adjudication of the agreement. Generally, the jurisdiction should be where the law is favorable to the operator or where the operator is physically located.
Settlement can help protect users of your website
A terms of use agreement can also help ensure that a website user’s interaction with the website is an enjoyable experience. For example, the agreement may dictate how users can interact with each other and may prohibit the sending of spam or abusive content to other users. These provisions are usually accompanied by the termination clause mentioned above.
Settlement can help protect your intellectual property
An intellectual property clause within a terms of use agreement can provide an invaluable opportunity to strengthen the protection of any intellectual property embedded in the website. In general, the website and its original content, design, features, functionality and other intellectual property could be said to be the property of the website operator.
A detailed terms of use agreement is an important protection for any business with an online presence. And the most important thing to remember is that mutual consent between the website operator and the user must be present if a company wants their agreement to be honored. Please read for additional information on terms of use agreements, Internet business and electronic commerce.
