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Free Terms of Service Generator

Create legally sound terms of service for your website, app, or online business in minutes with our free generator.

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TERMS OF SERVICE Last Updated: February 26, 2026 1. ACCEPTANCE OF TERMS Welcome to Your Business Name. By accessing or using our software as a service platform, you agree to be bound by these Terms of Service ("Terms"). If you do not agree to these Terms, please do not use our services. 2. ELIGIBILITY You must be at least 18 years old to use our services. By using our services, you represent and warrant that you meet this age requirement and have the legal capacity to enter into these Terms. 3. DESCRIPTION OF SERVICE Your Business Name provides a software as a service platform that allows users to access various features and functionalities as described on our platform. We reserve the right to modify, suspend, or discontinue any aspect of our services at any time without prior notice. 4. USER ACCOUNTS To access certain features, you may be required to create an account. You agree to: - Provide accurate, current, and complete information during registration - Maintain and promptly update your account information - Maintain the security of your password and account - Notify us immediately of any unauthorized use of your account - Accept responsibility for all activities that occur under your account We reserve the right to suspend or terminate accounts that violate these Terms or engage in fraudulent, abusive, or illegal activity. 5. PAYMENT TERMS Monthly subscription billing - All fees are in U.S. Dollars unless otherwise specified - Payment is due according to the billing schedule selected - We reserve the right to change our fees with 30 days' notice - Refunds are handled on a case-by-case basis - You authorize us to charge your designated payment method for all fees - Failure to pay may result in suspension or termination of services 6. USER CONTENT Our platform allows users to post, upload, or share content including comments, reviews, and uploaded files. By submitting content, you: - Grant us a worldwide, non-exclusive, royalty-free license to use, reproduce, modify, and display your content in connection with our services - Represent that you own or have the necessary rights to the content you submit - Agree not to post content that is illegal, harmful, threatening, abusive, harassing, defamatory, vulgar, obscene, or invasive of another's privacy - Understand that we may remove any content that violates these Terms We are not responsible for user-generated content and do not endorse any opinions expressed by users. We reserve the right to monitor, edit, or remove content at our discretion. 7. PROHIBITED CONDUCT You agree not to: - Violate any applicable laws or regulations - Infringe upon the intellectual property rights of others - Transmit viruses, malware, or other harmful code - Attempt to gain unauthorized access to our systems - Interfere with or disrupt our services or servers - Use our services for any fraudulent or illegal purpose - Impersonate any person or entity - Harvest or collect information about other users without their consent - Use automated systems (bots, scrapers) without our written permission 8. INTELLECTUAL PROPERTY All content, features, and functionality of our services, including but not limited to text, graphics, logos, icons, images, audio clips, and software, are the exclusive property of Your Business Name or its licensors and are protected by copyright, trademark, and other intellectual property laws. You may not reproduce, distribute, modify, create derivative works of, publicly display, republish, download, store, or transmit any material from our services without prior written consent. 9. DISCLAIMERS OUR SERVICES ARE PROVIDED "AS IS" AND "AS AVAILABLE" WITHOUT WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NON-INFRINGEMENT. We do not warrant that: - Our services will be uninterrupted, timely, secure, or error-free - The results obtained from using our services will be accurate or reliable - Any errors in our services will be corrected - Our services will meet your requirements 10. LIMITATION OF LIABILITY TO THE MAXIMUM EXTENT PERMITTED BY LAW, YOUR BUSINESS NAME SHALL NOT BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES, INCLUDING BUT NOT LIMITED TO LOSS OF PROFITS, DATA, USE, OR GOODWILL, ARISING OUT OF OR RELATED TO YOUR USE OF OUR SERVICES. IN NO EVENT SHALL OUR TOTAL LIABILITY EXCEED THE AMOUNT YOU PAID US IN THE TWELVE (12) MONTHS PRECEDING THE CLAIM, OR $100, WHICHEVER IS GREATER. 11. INDEMNIFICATION You agree to indemnify, defend, and hold harmless Your Business Name and its officers, directors, employees, and agents from any claims, liabilities, damages, losses, and expenses, including reasonable attorneys' fees, arising out of or related to: - Your use of our services - Your violation of these Terms - Your violation of any rights of another party - Your content or conduct on our services 12. TERMINATION We reserve the right to suspend or terminate your access to our services at any time, with or without cause, with or without notice. Upon termination, your right to use our services will immediately cease. Provisions that by their nature should survive termination shall survive, including but not limited to ownership provisions, warranty disclaimers, indemnity, and limitations of liability. Upon termination, you remain responsible for any unpaid fees. No refunds will be issued for partial subscription periods unless otherwise specified in our refund policy. 13. DISPUTE RESOLUTION These Terms shall be governed by and construed in accordance with the laws of California, without regard to its conflict of law provisions. ARBITRATION: Any dispute arising from these Terms or your use of our services shall be resolved through binding arbitration in accordance with the rules of the American Arbitration Association. The arbitration shall take place in California. Each party shall bear its own costs and fees. By agreeing to these Terms, you waive your right to a jury trial. CLASS ACTION WAIVER: You agree to resolve disputes on an individual basis only. You waive any right to participate in a class action lawsuit or class-wide arbitration against Your Business Name. 14. MODIFICATIONS TO TERMS We reserve the right to modify these Terms at any time. We will notify users of material changes by posting the updated Terms on our website and updating the "Last Updated" date. Your continued use of our services after changes are posted constitutes acceptance of the modified Terms. If you do not agree to the modified Terms, you must stop using our services. 15. GENERAL PROVISIONS Entire Agreement: These Terms constitute the entire agreement between you and Your Business Name regarding our services. Severability: If any provision of these Terms is found to be invalid or unenforceable, the remaining provisions shall remain in full force and effect. Waiver: Our failure to enforce any right or provision of these Terms shall not constitute a waiver of such right or provision. Assignment: You may not assign or transfer these Terms without our written consent. We may assign our rights and obligations without restriction. Force Majeure: We shall not be liable for any failure to perform due to circumstances beyond our reasonable control. 16. CONTACT INFORMATION If you have any questions about these Terms, please contact us at: Your Business Name Email: contact@yourbusiness.com --- By using our services, you acknowledge that you have read, understood, and agree to be bound by these Terms of Service.
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Pro Tip: Update your terms of service annually or whenever you make significant changes to your service. Always require users to accept updated terms and keep dated versions archived for legal compliance. Major platforms like Stripe and PayPal require valid terms of service for payment processing.
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About This Tool

Create legally sound terms of service for your website, app, or online business in minutes with our free generator. Terms of service (ToS), also known as terms and conditions or terms of use, are the legal agreement between you and your users that governs how they can use your service. Without proper terms of service, you expose your business to unnecessary legal risk, potential lawsuits, and difficulty enforcing rules against problematic users. When launching a SaaS platform, running an e-commerce store, publishing a content website, or releasing a mobile app, having clear, enforceable terms is essential. Our generator creates comprehensive terms covering user eligibility, acceptable use policies, payment terms, intellectual property rights, liability limitations, and dispute resolution, all customized to your specific business model and jurisdiction.

Why Every Website Needs Terms of Service

Terms of service serve as the legal foundation for your relationship with users. Here's why they're critical:

  • Liability Protection: Terms limit your liability for service disruptions, data loss, or other issues. Without them, users could sue for damages under implied warranties.
  • Dispute Resolution: Terms specify how disputes are handled, often through arbitration rather than costly lawsuits. This can save tens of thousands in legal fees.
  • User Behavior Rules: Terms define prohibited conduct, giving you legal grounds to ban abusive users, remove harmful content, or terminate accounts.
  • Intellectual Property Protection: Terms clarify that your content, code, and brand remain your property, preventing users from claiming rights to your work.
  • Payment Processor Requirements: Stripe, PayPal, and other processors require valid terms before approving your account. No terms = no payment processing.
  • Legal Compliance: Terms help you comply with regulations like COPPA (children's privacy), GDPR (European data protection), and state consumer protection laws.

In 2023, the average cost to defend a contract dispute lawsuit was $91,000, even if you win. Terms of service with strong arbitration clauses can prevent that exposure entirely.

Essential Clauses Every ToS Needs

A comprehensive terms of service document should include these critical sections:

1. Acceptance of Terms

  • States that using the service means agreeing to the terms
  • Requires users to stop using if they don't agree

2. Eligibility Requirements

  • Minimum age (13+ for COPPA compliance, 18+ for contracts, or no restriction)
  • Geographic restrictions if applicable
  • Legal capacity to enter binding agreements

3. User Accounts

  • Registration requirements and accuracy of information
  • Account security and password responsibilities
  • Consequences of unauthorized access

4. Payment Terms (if applicable)

  • Pricing and billing cycles
  • Refund policies
  • Right to change fees with notice

5. User Content and Conduct

  • License granted to your platform for user-submitted content
  • Prohibited content and behavior
  • Your right to remove content or ban users

6. Disclaimers and Limitation of Liability

  • "As is" service disclaimer (no guarantee of uptime, accuracy, etc.)
  • Cap on damages (often limited to fees paid in last 12 months)
  • Exclusion of consequential damages

7. Dispute Resolution

  • Governing law (which state/country's laws apply)
  • Arbitration requirement (avoids class action lawsuits)
  • Venue for legal proceedings

Liability Limitations: Protecting Your Business

The most important function of terms of service is limiting your legal exposure. Here's how liability clauses protect you:

"As Is" Disclaimer

This clause states that your service is provided "as is" and "as available" without warranties. This means:

  • You don't guarantee 100% uptime or error-free operation
  • You're not liable if bugs cause user losses (like a calculator error)
  • Users accept the risk that features may change or be discontinued

Damage Caps

Most ToS limit total liability to the amount the user paid in the preceding 12 months, or $100, whichever is greater. This prevents users from claiming millions in damages for minor issues.

Excluded Damages

Terms typically exclude "consequential damages": indirect losses like lost profits, lost data, or business interruption. Example: If your scheduling app crashes and a user misses a $10,000 client meeting, they can't sue for the lost contract, only for their $10/month subscription.

Indemnification

This clause requires users to cover your legal costs if their behavior causes you to get sued. Example: User posts defamatory content and the victim sues you. The user must pay your defense costs.

Important Limitation: These clauses are enforceable in most U.S. states, but some limitations (like caps on fraud or gross negligence) don't hold up in court. Always consult an attorney for your specific jurisdiction.

Dispute Resolution Options

How you handle disputes can make or break your business. Here are the main approaches:

1. Arbitration (Recommended for Most Businesses)

  • Private dispute resolution outside of court
  • Faster and cheaper than lawsuits (median arbitration: $50,000 vs. $91,000 for litigation)
  • Prevents class action lawsuits (individual arbitration only)
  • Uses organizations like American Arbitration Association (AAA)

2. Mediation

  • Non-binding negotiation with a neutral third party
  • Often required as a first step before arbitration/litigation
  • Preserves business relationships better than adversarial processes

3. Forum Selection Clause

  • Specifies which state/country's courts have jurisdiction
  • Usually your business's home jurisdiction (reduces travel costs)
  • Example: "Any lawsuit must be filed in the state courts of Delaware"

4. Class Action Waiver

  • Prevents users from banding together in class action lawsuits
  • Requires individual arbitration instead
  • Can save millions in class action defense costs
  • Controversial but upheld by U.S. Supreme Court in AT&T Mobility v. Concepcion

What to Choose: For small businesses and startups, mandatory arbitration with a class action waiver offers the best protection at the lowest cost. Enterprise companies may prefer litigation for precedent-setting cases.

State-Specific Considerations for Terms of Service

While terms of service are generally governed by federal contract law, state laws significantly impact their enforceability and required provisions:

California:

  • Strong consumer protection laws may override certain limitation of liability clauses
  • CCPA requires specific disclosures about data collection and sale of personal information
  • Auto-renewal terms must meet strict notice requirements under California's automatic renewal law (ARL)

New York:

  • General Business Law Section 349 prohibits deceptive practices, and unconscionable ToS provisions can be challenged
  • Courts closely scrutinize arbitration clauses in consumer contracts

Texas:

  • Generally business-friendly with broad freedom of contract
  • Deceptive Trade Practices Act provides consumer protections that cannot be waived in ToS

International Users:

  • EU users have mandatory rights under GDPR and consumer protection directives that cannot be overridden by ToS
  • UK Consumer Rights Act 2015 renders unfair terms unenforceable
  • Australian Consumer Law provides guarantees that cannot be excluded

When your service has users in multiple jurisdictions, choose your governing law carefully and consult an attorney about which provisions may be unenforceable in specific regions.

Frequently Asked Questions

Are terms of service legally binding?

Yes, terms of service are legally binding contracts in most jurisdictions, provided users have clear notice and opportunity to review them before agreeing. Courts generally enforce ToS if: (1) users explicitly agree (clicking "I agree" or creating an account), (2) the terms are reasonably accessible, and (3) the terms aren't unconscionable or illegal. However, some clauses (like waiving fraud liability) won't be enforced. To maximize enforceability, use clear language, provide notice of updates, and require affirmative acceptance.

Can I just copy someone else's terms of service?

No, you should never copy terms verbatim. First, it's likely copyright infringement because terms are creative works owned by the company that wrote them. Second, generic terms won't fit your specific business model, jurisdiction, or risk profile. A SaaS platform needs different clauses than an e-commerce store. Third, blindly copying means you don't understand what you're agreeing to enforce. Use templates as a starting point, but customize them to your business and have a lawyer review them. The cost of a legal review ($500-$2,000) is far less than the cost of inadequate terms in a lawsuit.

How often should I update my terms of service?

Review and update your terms at least annually, or whenever you make significant changes to your service, such as: adding payment features, allowing user-generated content, expanding to new countries, or changing your business model. When you update terms, notify users (email is common) and require re-acceptance for continued use. Many platforms use a banner: "We've updated our Terms of Service. Review changes here." Keep archived versions with timestamps because if a dispute arises, you need to prove which terms were in effect at that time.

Do I need separate terms and privacy policy?

Yes, absolutely. Terms of service govern the contractual relationship (what users can do, payment terms, liability). Privacy policy explains how you collect, use, and protect user data. They serve different legal purposes: terms are a contract, privacy policy is a disclosure required by laws like GDPR, CCPA, and COPPA. Stripe, Google AdSense, and Apple App Store all require both documents to be clearly accessible. Trying to combine them creates a confusing document that fails to meet either requirement properly.

What happens if a user violates my terms of service?

Your terms give you the legal right to take action, but you must follow your own stated procedures. Common responses include: (1) Warning the user and requesting compliance, (2) Temporarily suspending the account, (3) Permanently banning the user, or (4) Pursuing legal action if violations caused damages (e.g., hacking, IP theft). Document all violations with screenshots and logs. This evidence is crucial if the user disputes the termination or sues. Your terms should explicitly state that you can terminate accounts "with or without cause" to preserve maximum flexibility.

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Reviewed by the UtilHQ Team

Our tools are verified for accuracy. Results are estimates for planning purposes.

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Legal Disclaimer

This tool generates templates for informational purposes only and does NOT constitute legal advice. The documents generated are generic templates that may not comply with laws in your jurisdiction. Always consult a qualified attorney before using any legal document for business or personal purposes. We are not responsible for any legal consequences resulting from the use of these templates.