Terms and conditions outline what users can and cannot do with your website, products, and services. They lay out the rules to protect you in case of misuse and enable you to take action if it becomes necessary.

It’s also referred to by other names such as terms of service (ToS) and terms of use (ToU). Even though they have different names, in fact – there is no difference. Any of these three terms (sometimes even referred to as user agreement) basically refer to the same document.

In order to use your website, products, or services, your customers usually must agree to abide by your terms and conditions first.

No. You aren’t legally required to have a terms and conditions agreement on your website. However, having terms and conditions is a good practice as it sets the “house” rules for everybody and creates a safer environment. This is especially important in some western countries where frivolous lawsuits are somewhat of a norm.

The bottom line, if you want your online business to thrive and be legally protected, this agreement will go a long way and may come in very handy when you least expect it.

While they are not legally required, terms and conditions set the stage for any successful business relationship. By making it clear and putting these guidelines in writing, business owners can avoid misunderstandings with their customers.

It also allows you to decide what you consider acceptable and which type of conduct could lead you to terminate a relationship with a user.

For example, if you have rules as to what type of user-generated content can be shared on your website, and someone posts something that goes against these, then you would have a leg to stand out should you decide to take that content down

It can also help you limit your liability in regard to some situations, which could reduce the likelihood of facing lawsuits or reduce the damages that you would have to pay should it be demonstrated that your user was aware and had agreed to your terms.