How to Write Business Terms and Conditions to Avoid Future Lawsuits

posted byBagasian LawJanuary 13, 2021

Have you ever created an account on a social media platform or bought a product from an e-commerce store and were asked to agree to a set of terms and conditions?

If you have, you entered into a legal contract with that business, whether you were aware or not.

From a business owner’s perspective, writing terms and conditions are extremely important to set precedents and to protect the business from future legal complications.

In this article, we will discuss:

What A Terms and Conditions Document Is

Terms and conditions are a legal contract created by a business to set precedents between the business and its users. They are most commonly used for online services, such as social media websites and online service providers.

Within the terms and conditions document, a business can define certain terms of use. For example, a social media platform may define what a user can and cannot post on their page and also define what the repercussions are for violating these terms.

A terms and conditions document can also be called “Terms of Service” or “Terms of Use.” These are interchangeable terms, and all have the same weight in a court of law.

Why Your Business Might Need Terms and Conditions

There are many different reasons a business might need terms and conditions document, depending on the industry and types of services offered.

In all cases, this document is essential for preventing any future legal disputes between your business and its users.

Because terms and conditions are legal documents, they outline legally binding obligations and the repercussions one will face for disregarding them.

Another reason your business might need it is to protect your website’s content.

It will protect your rights to the content you create, from written blog content to logos and web design.

One of the most common applications of a terms and conditions document is for e-commerce websites. In this case, a document outlining the rights and protections of website users is essential considering payment information and private data, such as mailing addresses, are being collected.

An e-commerce business needs to outline how their customers’ data will be protected to create a trusting relationship between the business and its consumers.

In the realm of e-commerce, a terms and conditions document also details how the transaction is being made, such as payment information and shipping.

Another common application of it is for social media, as previously mentioned.

The Essential Elements of a Terms and Conditions Document

Although the details of a terms and conditions document will differ based on your business and its needs, they all could include certain elements.

First is the limitation of liability clause , which means that if a business is facing a lawsuit, they are protected from extreme repercussions. As the name suggests, the liability or responsibility a business has is limited, as defined by the provisions outlined in a terms and conditions document.

For example, this might include a cap on the fees or fines that have to be paid as compensation.

The next important element of a terms and conditions document is disclaimers, which are often written conjunction with limited liability.

Disclaimers are meant to be proactive, protecting a business from liability in specific situations.

Additionally, for cases in which businesses want to protect their content, an Intellectual Property clause must be included. This clause states that the content on a website is owned by the creators of that website.

Another important element of a terms and conditions document is a termination clause, which states that if a user violates the document, their account or ability to use the service will be terminated.

Finally, the document must include a “governing law,” which states under which jurisdiction the adherence to the conditions are enforced.

One would begin this statement by writing, “These terms and conditions are governed by the laws of [insert location].”

How a Business Lawyer Can Help in Writing Terms and Conditions

Since the document is legally binding, you must have a lawyer help you draft or review your terms and conditions document.

A professional business lawyer has experience in drafting legal documents and contracts and also understands how they can be used for or against you in court.

In this regard, a professional lawyer will know how to draft a contract that puts your best interest first, limits your liability, and prevents future disputes.


Developing a terms and conditions document for your business has legal ramifications. Therefore, hiring legal representation ensures you protect your rights and those of your customers.

From drafting these terms to contracts to understanding what is necessary for your business, a lawyer will ensure the success and safety of your business.

Los Angeles-based lawyer, Alina Bagasian, will provide the best legal services for your business. Possessing an understanding of corporate and commercial business, Alina Bagasian is ready to represent your business and provide you with excellent legal advice.

The Law Offices of Alina Bagasian have achieved 100% client satisfaction, providing clients with unlimited advice, and offering eight different services to avoid any legal complications when drafting terms and conditions.

Get the help you need today!

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