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Terms Of Condition

A Terms and Conditions agreement (also called a Terms of Service, Terms of Use, or simply Terms) is a legally binding agreement that allows you to protect your business and limit your liability. It does this by establishing your legal rights and limitations in written form.

Your Terms and Conditions agreement should lay out the rules you want your online shoppers to abide by if they want to browse your store or make purchases. Since your Terms and Conditions agreement is legally enforceable, both you and your customers can enforce the Terms established in the agreement.

A customer's agreement with your Terms and Conditions is sometimes implied, meaning you assume the customer agrees to your Terms by virtue of browsing your site, downloading information, purchasing products and otherwise interacting with your store. This type of implied consent is called a browsewrap agreement.

However, as privacy laws evolve to become more strict, browsewrap is being phased out and more and more ecommerce stores are requiring shoppers to tick a box or click a button to actively acknowledge and accept the Terms and Conditions to comply with laws. This type of agreement is called a clickwrap agreement, meaning the user must take action to confirm their consent to the agreement. It is the preferred and recommended method to best protect you and your online store from legal liability.

As an ecommerce site owner, you can enforce your Terms by refusing to allow an online shopper to browse your site or purchase products. The customer also can enforce the Terms by filing a lawsuit.

A Terms and Conditions agreement typically is organized to cover several important sections or clauses, depending on the nature of the business. In general, a good Terms and Conditions for an ecommerce store should contain the following clauses:

  1. Limitations of liability
  2. Intellectual property/trademark protection
  3. Pricing and payment terms, including shipping, returns, exchanges and cancellations
  4. Product information
  5. Dispute resolution

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