A terms of use agreement serves as a contract between a website operator and a website user, essentially allowing the operator to establish ground rules for the use of the website. These agreements have become a near 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. In addition, if the website allows account registration, the agreement may include a termination clause, which allows the operator to cancel the account and prohibit the user from accessing the site, generally 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 content of the website or by limiting liability to the amount that the user paid for the services of the website. You may waive any warranties of suitability or merchantability that may otherwise apply to products sold by the website.

Finally, the terms of the use agreement may determine the jurisdiction that will govern the interpretation and award of the agreement. Generally, 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 the website user’s interaction with the website is a pleasant experience. For example, the agreement may dictate how users can interact with each other and may prohibit spamming or direct abusive content towards other users. These provisions are usually accompanied by the rescission 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. Generally, it could be said 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 safeguard 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 its agreement to be honored. Read on for additional information on terms of use agreements, Internet businesses, and e-commerce.