{"id":14382,"date":"2024-06-12T17:16:19","date_gmt":"2024-06-12T17:16:19","guid":{"rendered":"https:\/\/www.ownr.co\/blog\/?p=14382"},"modified":"2024-06-12T17:16:19","modified_gmt":"2024-06-12T17:16:19","slug":"terms-of-use-agreement","status":"publish","type":"post","link":"https:\/\/www.ownr.co\/blog\/terms-of-use-agreement\/","title":{"rendered":"What is a Terms of Use Agreement and How To Make One"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">As an entrepreneur, it\u2019s important to make certain legal information about your business easily available online. You\u2019re probably already familiar with a Terms of Use Agreement from navigating other websites. This legal document is often linked in a web page\u2019s footer, or may appear as a pop-up banner that visitors provide consent to before continuing use of the website.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Creating your own Terms of Use Agreement may seem like a daunting task for small business owners who aren\u2019t comfortable with legal language, but thankfully Ownr has a solution. In this guide, we\u2019ll walk through what a Terms of Use Agreement is, other names it can also go by,\u00a0 and what terms you should include.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">What is a Terms of Use Agreement?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A Terms of Use Agreement is a legally binding document that explains the rules of use for your business\u2019s website or app. Think of it as a contract between you and the visitors for using your website. It lays out what services your website offers, and what you expect from your visitors in return.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While you are not required by Canadian law to include a Terms of Use Agreement on your site, it is highly recommended as a best practice. Not only does a Terms of Use Agreement give your website credibility, but it also serves to protect your business from liability if there\u2019s a legal dispute between you, the business owner, and a visitor or customer of your website.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Alternative names for a Terms of Use Agreement<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Don\u2019t get confused if you see a Terms of Use Agreement called different things. Here are some of its most common names:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Terms and Conditions<\/span><\/li>\n<li><span style=\"font-weight: 400;\">T&amp;C Agreement<\/span><\/li>\n<li><span style=\"font-weight: 400;\">T&amp;Cs<\/span><\/li>\n<li><span style=\"font-weight: 400;\">User Agreement<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Terms of Service Agreement<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Acceptable Use Policy<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Legal Information Page (which may house a variety of legal policies)<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">\u00a0Terms of Use Agreement vs. Terms and Conditions Agreement: What\u2019s the difference?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Both refer to the same document and can be used interchangeably (as well as any of the other names above). It\u2019s important to note that neither are not the same as a Privacy Policy, which is a separate legal document (though they are commonly linked to each other).<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Types of Terms of Use Agreements<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">There are a couple of different\u00a0\u00a0<\/span><\/p>\n<h4>Clickwrap agreement<\/h4>\n<p><span style=\"font-weight: 400;\">A clickwrap agreement is a Terms of Use Agreement that appears as a popup or landing page upon landing on the website where the user must provide consent before continuing their use. While not the most common type of agreement on the web, the high visibility can have legal benefits, including the express consent that it requires. A user cannot continue to navigate your website without clicking that they accept the terms, making them stronger to enforce legally because the user cannot make the case that they were not aware of your website terms.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you sell goods in certain countries, you may be required to display your Terms of Use as a clickwrap to receive express consent from anyone purchasing your goods (for example, the<\/span><a href="\&quot;https:\/\/gdpr-info.eu\/\&quot;"> <span style=\"font-weight: 400;\">GDPR<\/span><\/a><span style=\"font-weight: 400;\"> requires it to be sold to EU citizens). This is often done at the checkout point before the user can confirm their purchase.<\/span><\/p>\n<h4>Browsewrap agreement<\/h4>\n<p><span style=\"font-weight: 400;\">A browsewrap is a more common way you\u2019ll see a Terms of Use Agreement hosted on most websites. This is when a link to the agreement webpage is placed in the website footer. This means the user must navigate to this page themselves to review the terms. They are not prompted to consent to the Terms of Use Agreement upon landing on the site. Instead, the terms include language that specifies that consent is implied through continued use of the website.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">\u00a0<\/span><span style=\"font-weight: 400;\">Is a Terms of Use Agreement legally binding?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Yes, a Terms of Use Agreement is a legally binding document provided it abides by certain criteria:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">The Terms of Use Agreement is made apparent to visitors of the website<\/span><\/li>\n<li>Your website visitors must be able to easily find your Terms of Use Agreement for them to be legally enforceable.<\/li>\n<li>A clickwrap agreement will have a stronger legal argument compared to a browsewrap agreement, for example, because of its high visibility and consent needed for the user to continue the use of the site.<\/li>\n<li>The agreement is consented to by visitors of the website<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Most Terms of Use Agreements will include language that will express the user\u2019s continuing use of the website is considered acceptance of the terms. Others will require consent through the form of clicking an \u201cI Accept\u201d button. It\u2019s important to make clear what actions the user is taking to consent, and what the consequences are if they do not consent or break the terms.<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">It must follow the appropriate governing laws.<\/span><\/li>\n<li>It must also be fair and lawful. A user cannot consent to terms which go against the governing law.<\/li>\n<li>It must be clear to understand<\/li>\n<li>It is not meant to trick or deceive your users. It should be clear and easy to comprehend.<\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">\u00a0<\/span><span style=\"font-weight: 400;\">Is a Terms of Use Agreement considered a contract?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A Terms of Use Agreement may be considered a contract if it fits specific criteria. By definition, a contract must have a mutual agreement and consideration from both parties. Therefore, a browsewrap agreement likely won\u2019t fit the criteria since the user can claim a lack of consideration and agreement if they did not review the terms. A clickwrap agreement has stronger enforceability since the user will have had to affirm their consent.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If there is a legal disagreement, a Terms of Use Agreement is still up to the interpretation of the court, so think about the type of <a href="\&quot;https:\/\/www.ownr.co\/blog\/how-to-make-a-website\/\&quot;">business website<\/a> you run and consider the possible legal cases you may face. If you have a relatively low-risk site with few terms set out, a simple browsewrap agreement may suffice. If your business has more complex terms, you may want to consider a clickwrap agreement and take care that your back-end records are tracking user acceptance.<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">How do I make a Terms of Use Agreement?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The Terms of Use Agreement you create should be appropriate and tailored for your business\u2019s needs.\u00a0 Not just because you will have your own unique requirements but simply copying another site\u2019s terms may be considered copyright infringement. Despite its formal name, your Terms of Use Agreement doesn\u2019t require the use of overly formal language. In fact, having unique terms can give you and your business a sense of legitimacy\u2014which is <a href="\&quot;https:\/\/www.ownr.co\/blog\/how-to-find-business-investors-in-canada\/\&quot;">great for potential investors<\/a> who are researching your company. You can take a look at these examples from<\/span> <a href="\&quot;https:\/\/policies.google.com\/terms?hl=en\&quot;"><span style=\"font-weight: 400;\">Google<\/span><\/a><span style=\"font-weight: 400;\">,<\/span><a href="\&quot;https:\/\/help.instagram.com\/581066165581870\&quot;"> <span style=\"font-weight: 400;\">Instagram<\/span><\/a><span style=\"font-weight: 400;\"> or<\/span><a href="\&quot;https:\/\/en.wikipedia.org\/wiki\/Terms_of_service\&quot;"> <span style=\"font-weight: 400;\">Wikipedia<\/span><\/a><span style=\"font-weight: 400;\"> if you want some inspiration.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Consider including the following within your Terms of Use Agreement:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Information about the terms (ie. what users can expect from you)<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Effective date<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Rights, responsibilities, and rules for users (ie. what you expect from users)<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Definition of misuse and consequences (including guidelines around the termination of user accounts)<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Billing and payment agreements<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Definitions of key phrases or language used<\/span><\/li>\n<li><span style=\"font-weight: 400;\">General disclaimers<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Limitation of Liability clause<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Information about use of the site\u2019s intellectual property and user-generated content<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Disclaimer that terms are subject to change and any updates to the terms<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Information on your governing jurisdiction<\/span><\/li>\n<li><span style=\"font-weight: 400;\">References and\/or links to other policies (<a href="\&quot;https:\/\/www.ownr.co\/blog\/what-is-a-privacy-policy\/\&quot;">Privacy Policy<\/a>, use of cookies, etc)<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">All of these can sound daunting and discouraging\u2014especially for a new business owner. But with Ownr&#8217;s document builder, you can get it all done with a few clicks and confirmations. And as a <a href="\&quot;https:\/\/www.ownr.co\/blog\/managed-corporate-plan-support\/\&quot;">Managed Corporation Plan<\/a> user, you\u2019ll be able to give access to a trusted lawyer to review your documents.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you use Ownr, you have access to a suite of legal documents built and tailored to Canada\u2019s legal landscape\u2014this way you can painlessly streamline your Terms and Conditions documents for your business<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Frequently Asked Questions About Terms of Use Agreements<\/span><\/h2>\n<h3><span style=\"font-weight: 400;\">What does Terms of Use mean?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">As the name implies, a Terms of Use agreement outlines the rules of using a website or app. Plainly put, it tells the user what to expect from using your website.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">\u00a0<\/span><span style=\"font-weight: 400;\">Can I write my own Terms of Use Agreement?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><span style=\"font-weight: 400;\">Yes, you can choose to write your own agreement. However, you run the risk of having an inadequate or insufficient agreement. You can either use Ownr to build a clear and effective agreement, or if you still want complete assurance, you can also work with a lawyer.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">What do you put in Terms of Use Agreements?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Your agreement should include information about the terms, and rules for using the website, definitions of key language and any relevant legal disclaimers and clauses. See the full list above for more details.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As an entrepreneur, it\u2019s important to make certain legal information about your business easily available online. You\u2019re probably already familiar with a Terms of Use Agreement from navigating other websites. This legal document is often linked in a web page\u2019s footer, or may appear as a pop-up banner that visitors provide consent to before continuing<a href="\&quot;https:\/\/www.ownr.co\/blog\/terms-of-use-agreement\/\&quot;">&#8230;.<span class=\"sr-only\">&#8220;What is a Terms of Use Agreement and How To Make One&#8221;<\/span><\/a><\/p>\n","protected":false},"author":6,"featured_media":14383,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[964,962,995,965],"tags":[1030],"class_list":["post-14382","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-stages","category-legal-and-compliance","category-managing-your-business","category-ownrship-101","tag-ownr-legal-library"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What is a Terms of Use Agreement and How To Make One | Ownr Blog<\/title>\n<meta name=\"description\" content=\"A terms of use agreement is an essential piece of your online presence. 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