A Terms and Conditions agreement is the agreement that includes the terms, the rules and the guidelines of acceptable behavior and other useful sections to which users must agree in order to use or access your website and mobile app.
Terms and Conditions agreements act as a legal contract between you (the company) who has the website or mobile app and the user who access your website and mobile app.
Having a Terms and Conditions agreement is completely optional. No laws require you to have one. Not even the super-strict and wide-reaching General Data Protection Regulation (GDPR).
It's up to you to set the rules and guidelines that the user must agree to. You can think of your Terms and Conditions agreement as the legal agreement where you maintain your rights to exclude users from your app in the event that they abuse your app, where you maintain your legal rights against potential app abusers, and so on.
Terms and Conditions are also known as Terms of Service or Terms of Use.
Desktop apps usually have an EULA (End-User License Agreement) instead of a Terms and Conditions agreement, but your business can use both. Mobile apps are increasingly using Terms and Conditions along with an EULA if the mobile app has an online service component, i.e. it connects with a server.
What to include in a Terms and Conditions
In your Terms and Conditions, you can include rules and guidelines on how users can access and use your website and mobile app.
Here's a list of questions that can help you determine what to add in your own Terms and Conditions:
Before you publish the agreement online, make sure your Terms and Conditions includes important disclosures, such as:
Are Terms and Conditions required?
A Terms and Conditions is not required and it's not mandatory by law. Unlike Privacy Policies, which are required by laws such as the GDPR, CalOPPA and many others, there's no law or regulation on Terms and Conditions.
However, having a Terms and Conditions gives you the right to terminate the access of abusive users or to terminate the access to users who do not follow your rules and guidelines as well as other desirable business benefits.
It's extremely important to have this agreement if you operate a SaaS app.
Here are a few examples of how this agreement can help you:
If you sell products or services, you could cancel specific orders if a product price is incorrect. Your Terms and Conditions can include a clause to inform users that certain orders, at your sole discretion, can be canceled if the products ordered have incorrect prices due to various errors.
How to enforce Terms and Conditions
While creating and having a Terms and Conditions is important, it's far more important to understand how you can make the Terms and Conditions enforceable.
You should always use clickwrap to get users to agree to your Terms and Conditions. Clickwrap is when you make your users take some action - typically clicking something - to show they're agreeing.
Here are 40 Terms and Conditions Templates for any Website.