Online commerce is incredibly common in this day and age, with over 50% of internet users purchasing goods or services online in 2024 (according to this website here).
Terms of Use and Terms & Conditions are often used interchangeably but they are slightly different legal documents. Read on to learnt the difference.
*Note, yes it’s possible to combine Terms of Use and/or Terms and Conditions into one document if applicable.
TERMS OF USE
Terms of Use are for customers visiting your website. It helps to protect you and your business from potential liabilities and outlines the rules users must follow when using your website. Ideally, a website Terms of Use does the following:
- Limits your liability should someone incur a loss while using your website (for example, from viruses).
- Protects intellectual property on your website (such as copyright in images and text).
- Removes your responsibility for any links you share to third-party websites.
- Gives you a general right to seek damages (i.e. compensation) from someone if you incur loss due to that person’s misuse of your website (for example, from hacking).
Did you know? We sell a Terms of Use contract template in our online store which you can peruse here.
TERMS AND CONDITIONS
If you supply or use the services of a business then it’s important to put the terms of your arrangement in writing.
Terms and conditions set out matters such as the terms of payment, ownership of intellectual property, the limitations of your liability, and steps the parties must take in the event of a dispute. While your Terms and Conditions do not need to be signed by your customers, it is still necessary for your customers to accept them just like any other contract.
Remember that businesses have obligations under Australian Consumer Law when it comes to certain guarantees you’re required to give to consumers.
Did you know? We sell a Creatives Terms of Trade contract template which you can access here.
Why You Shouldn’t Copy Another Business’s Ts & Cs
If you’re a savvy business owner who sells goods or services, you probably know that you should have Terms & Conditions for your customers.
Ideally these are drafted specifically for your business by a lawyer, or you have used a well drafted contract template to input your business details into. However – you should never copy and paste another business’ Ts & Cs.
Here are some quick tips as to why that’s a bad idea:
- It could be copyright infringement and a breach of Copyright Law. It’s fairly easy to check if someone has copied your Ts & Cs with a plagiarism website or Google search.
- It may not hold up in court. Good Ts & Cs are to protect your business and in the event of a dispute may be relied upon to support your case. You want them to legally protect your business always!
- It’s bad for your business – your Ts & Cs articulate your contractual obligations as a business owner. These should cover your unique business operations.
- The ACCC can issue penalties to businesses whose Ts & Cs are not legally compliant and/or copied from another business.
If you need assistance drafting Terms and Conditions – we can help! Contact our team here and check out our online contract template store here.
We have:
- Terms of Use
- Privacy Policy
- Social Media Influencer Agreement
And for the creatives out there:
- Terms of Trade
- Licence Agreement
- Supplier Terms of Engagement
