What are terms and conditions?
Terms and conditions are the legal rules that govern how a website, application, product, or service can be used. They establish the rights and responsibilities of both the provider and the user, and often include provisions about acceptable use, payments, liability, intellectual property, and dispute resolution.
What to review in terms and conditions
Risks to watch for
Common mistakes
- Accepting terms without reading key sections.
- Ignoring subscription and renewal clauses.
- Not reviewing refund policies.
- Assuming terms cannot change over time.
- Overlooking account termination provisions.
Real-world example
A user subscribes to an online platform and agrees to the terms without reviewing the billing section. Months later, they discover the subscription renews automatically each year unless cancelled in advance. Reviewing the terms beforehand would have clarified the renewal process and cancellation requirements.
FAQ
Are terms and conditions legally binding?
In many cases they can be legally enforceable if users have been properly informed and have accepted them.
Can a company change its terms and conditions?
Many providers reserve the right to update their terms. Depending on applicable laws, users may need to be notified of significant changes.
What is a limitation of liability clause?
It is a clause that restricts the amount or type of damages a company may be responsible for.
Why do terms and conditions mention governing law?
The governing law clause determines which jurisdiction's laws apply when disputes arise.
Can Lawyerless explain terms and conditions?
Yes. You can paste terms and conditions into Lawyerless and receive a plain-language explanation of key clauses and risks.