What are terms of use?

Terms of use (also known as Terms & Conditions, T&Cs, or Terms of Service) are a set of rules that outline the rights, responsibilities, and restrictions for both the service provider and end user. Typically, these terms are agreed to by checking a box (called a ‘clickwrap agreement’) or referenced as part of a broader agreement. An example of the former is when downloading an app on your phone, the latter when you sign up for a gym membership. 

How do I write terms of use?

We’ve compiled a list of questions to ask yourself when setting up your T&Cs to ensure you are walking away with a good understanding of why you need them to begin with and clear next steps.Ssign up for a free trial of the Docfield platform and develop your T&Cs in a

What is the purpose of the terms of use?

Terms of use define acceptable behavior, limit liability, and help enforce intellectual property rights. They may also outline policies on account suspension, termination, user-generated content, dispute resolution, and jurisdiction.

The Terms of Use should explain the nature of the service being offered, who is allowed to use it, and under what conditions. For example:

• Who can create an account?
• What kind of use is permitted (e.g. internal business use only)?
  Are there any age or jurisdiction restrictions?

Tip: Keep the language user-friendly, but legally sound.

What restrictions should be included?

Clearly define what users are not allowed to do. Common restrictions include:

• Reverse engineering or tampering with the platform
• Misuse of intellectual property
• Uploading harmful or illegal content
• Granting unauthorized access to others

Advice: Tailor these restrictions to your platform’s specific risks or vulnerabilities.

What are your rights as the provider?

Reserve the right to:

• Modify or discontinue the service
• Terminate accounts for policy violations
• Update the terms at any time (with or without notice, depending on jurisdiction)
  
  

Best Practice: Explain how users will be notified of changes and where they can find the most current version.

What liability limitations should be included?

Limit your company’s legal exposure by including disclaimers of warranties and caps on damages. For example:

• “This service is provided ‘as is’ and without warranties.”
  
  
• “Our liability is limited to the amount paid in the last 12 months.”
  

Common Mistake: Failing to include these can leave your company open to legal challenges.

What happens in case of a dispute?

Define how disputes will be resolved and under what legal jurisdiction. Many agreements include clauses such as:

• Arbitration or mediation before litigation
• Specific governing law and venue (e.g., Dutch law, California courts)

Tip: Keep it consistent with your company's legal structure and location.

Are terms of use legally required?

Technically, Terms of Use are not always legally required, but they are highly recommended. Without them, there’s no formal agreement to govern how your service can be used—or misused. For SaaS companies and platforms handling sensitive information, clear Terms of Use help mitigate risk, resolve conflicts more easily, and establish enforceable boundaries.

Terms of use examples

Different industries and platforms use Terms of Use in various ways:

• CLM platforms: Define acceptable use of contract templates, integrations, and collaboration features.
  
• Subscription-based SaaS: Outline billing terms, trial limitations, and service tiers.
  
• Content platforms: Regulate user submissions, copyright, and moderation policies.
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These examples demonstrate how Terms of Use adapt to the nature of the digital product or service being offered.

Conclusion

Terms of Use are a critical part of protecting your business and clarifying the expectations you set with your users. Whether you're offering a contract management platform or another digital service, clearly outlining how your product should be used, what’s prohibited, and how disputes are handled ensures smoother operations and legal clarity. A thoughtfully crafted Terms of Use policy not only reduces risk but also reinforces your company’s professionalism and transparency.