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Why you shouldn't start a Startup without Terms & Conditions!

Every online startup must have a "Terms & Conditions" document placed on their website. It is a common misconception that T&C document is not important and should not be made.
Written by:
Abhishek Sahoo
Published on

Every online startup must have a “Terms & Conditions” document placed on their website. It is a common misconception that T&C document is not important and should not be made. However, it is important for every business that operates a website to draft a set of terms and conditions that will govern the relationship between end-users and the website operator. It is also known as a Terms of Service or a Terms of Use agreement. Basically, it is a set of rules and regulations which users must agree to in order to use the website. The document acts as a disclaimer, informing the users of their rights and duties and sets conditions to use the website. By clicking on “I agree” or “I accept”, a user gives his/her consent to the terms of use stipulated in the document. There are certainly important factors related to a T&C document. Following pointers elaborate the same-

  • Prevents Misuse- The document is a legally binding contract between the website owner and the users. The agreement sets the rules and guidelines that users must agree to and follow in order to access the website or mobile app. Hence, the user gets limited by the document, leaving no scope for misuse.

  • Protects Content- The website owner is the owner of the content that is uploaded to the website. Even the design of the website and logo come under the ownership of the website owner. A T&C document will mention and inform the users about the ownership of the website’s content. Thereby enabling protection in case anyone plagiarizes or tries to copy the content.

  • Controls Engagement- A common clause that Terms and Conditions agreements include is the “Termination clause”. This clause informs users that abusive accounts will be terminated and banned from using the service. Eventually, if any user violates any term or condition, the account will be permanently or temporarily banned as per the document.

  • Limits Liability- Terms and Conditions agreements commonly include a warranty disclaimer that limits the website owner’s liability in cases where errors are found in the content presented on the website.

  • Stipulates Governing Law- The Terms and Conditions agreement mentions the law that shall apply to the parties in case any dispute arises. This clause is highly important since anyone can access a website on the world wide web, the provision will specify the applicable law beforehand


Also, it is important to note that in case of documents like terms & conditions, one size doesn’t fit all. Therefore, it is important to have a tailor-made T&C document. The specific terms contained in the document will inevitably vary depending on the type of service provided by the business through the website, and the underlying commercial relationship between the end-user and the applicable website operator.

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