Top 10 Merchant Tips on How to Write Terms and Conditions

The well-drawn Terms and Conditions (aka Terms of use, User Agreement, or General Conditions) are the best instrument to protect your business and build long-term customer relationships. The reason for that is simple: on the one side, the merchant can easily protect their business if push comes to shove, and, on the other side, the customer has a clear view of what to expect.

What Are the Terms and Conditions

T&Cs is a legally binding contract that sets out all essential points: the rights and duties of both parties, the description of the goods/services offered, the delivery process, risk allocation, liability provisions, withdrawal or cancellation disclosures, dispute resolution procedures, etc.

How to Write Terms and Conditions with Examples

Of course, some clauses may vary from business to business due to their type and specifics, but we have prepared some basic practical recommendations that can help you to improve your T&Cs:

1) Place your T&C on a separate, easily accessible webpage using a hyperlink in the website’s footer. Ensure that your T&Cs are brought to your customer’s attention as soon as possible.

2) Get the user’s consent to T&C in the most easily accessible way, for example, by using a disclaimer such as this one:

• “By using the Site, you agree to the following Terms of Use; if you do not agree, do not use the site.”

3) Specify the service provider – your legal entity, its address, and registration number in the first paragraph of the T&C:

• “These Terms and Conditions (hereinafter referred to as the “T&C”) govern the relationship between the […], a legal entity incorporated under the laws of […] with registration number […], having its registered office at […], (the “Provider”, “us”, “our” or the “Company”) and its User and apply to the use of […] website (hereinafter referred to as the “Website”).

4) Indicate the scope of provided services or product specifications and the process of their delivery to the customer. In this way, you can easily meet the client’s expectations.

5) Note that the governing law clause must coincide with the country of registration of your company:

• “This T&C and any claim, controversy, or dispute relating to or arising hereunder shall be governed by and construed, and interpreted in accordance with the law of the of [the country of registration].”

6) Include the provision related to intellectual property rights to protect yourself:

• “The Sites and all of their contents, features, and functionality (including but not limited to all information, software, text, displays, images, video and audio, and the design, the selection, and arrangement thereof), are owned by […] and are protected by applicable intellectual property laws.”

7) Do not forget about the liability disclaimer that limits your responsibility for damages that may arise. Use this clause as your protection from misunderstandings and groundless claims. For example, it can be formulated in the following way:

• “We make no warranties or representations about the accuracy or completeness of the service’s materials or the content of any websites linked to this service, and we will assume no liability or responsibility for any personal injury or damage resulting from your access to and use of the service.”

8) If you offer subscription-based services, ensure that your T&C includes the terms of your offer (the duration, pricing, and description of accessible content or services). Also, you should specify a Cancellation clause that stipulates the subscription’s canceling procedure, for example:

• “Canceling your subscription means that the automatic renewal will be disabled, but you will still have access to all your subscription features for the remaining time of your then-current period. The subscription can be canceled anytime by e-mailing support at [email], calling support at [phone number], or clicking “Cancel” under your profile.”
  
  

9) Another essential provision is the Refund clause which outlines the eligibility requirements for refunds, timeframes, and the return process:

• “A 14-day full refund guarantee covers all purchases. The decision to reimburse a charge does not insure the obligation to reimburse other subsequent expenses. Any charge will be refunded by the payment method used for the original transaction. Any refund request must be made by [the procedure description].”

10) The Termination clause should be specified as well. It’s an important point for preventing abuses by setting out your right to terminate accounts in case of violation of T&C or applicable laws.

Summing Up

Finally, no doubts are left that T&Cs are the best way to set your rules and ensure litigation protection. Please take into account that the scope of this article is limited to providing you with useful tips that work for every merchant. However, you still need to ensure that your T&Cs are legally compliant and enforceable and cover all risks arising from your business activity. Contact our team using the form below to get a consultation.