The importance of having a terms of use agreement for your website and e-commerce
A terms of use agreement serves as a contract between a website operator and a user of the website, essentially allowing the operator to establish ground rules for 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 interaction parameters. Therefore, any business with an online presence should consider including a well-crafted terms of use agreement for a number of 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 cannot 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, normally 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 responsible 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 any 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. In general, the jurisdiction should be where the law is favorable to the operator or where the operator is physically located.
The agreement can help protect your website users
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 may interact with each other and may prohibit spamming or abusive content to other users. These provisions are often accompanied by the termination clause mentioned above.
The agreement 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, you could say that the website and its original content, design, features, functionality and other intellectual property are 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.