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What is a Terms and Conditions Agreement?

Tricia Christensen
Tricia Christensen
Tricia Christensen
Tricia Christensen

Terms & conditions agreements are used with regularity in many different applications. For example, the rental of a DVD evokes such an agreement that one will not copy the DVD or use it for any other purpose than personal entertainment. If one purchases a warranty with a new car, one will frequently sign an agreement that specifies as to what repairs are covered or not covered under the warranty. Signing the terms & conditions agreement represents that one understands the scope and limitations of the warranty.

Most frequently one sees terms & conditions applied to the use of websites, for example, wiseGEEK. When one uses wiseGEEK, the rules of use are clearly delineated on the wiseGEEK web page. A user essentially agrees to the them prior to using the site.

The terms and conditions of a rental DVD include not copying it.
The terms and conditions of a rental DVD include not copying it.

These terms & conditions include a statement that wiseGEEK material exists under copyright law. WiseGEEK also disclaims liability from people using the site to govern their actions. So, for example, answers to medical questions or answers about financial matters are not meant to be taken as advice or substitute as advice from professionals. Further, wiseGEEK disclaims liability for the advertisements featured on wiseGEEK pages, called third party liability.

Websites commonly require approval of terms and conditions before access is allowed.
Websites commonly require approval of terms and conditions before access is allowed.

When surfing the Internet, it is an excellent idea to read terms & conditions of use prior to using different sites. Occasionally, an agreement will bury text about giving out one’s name or email to other sites, which can result in a lot of spam emails, or even telemarketing calls and snail mail spam.

As well, sometimes terms & conditions are important to keep a site running in a way that will not expose the owners of the site to liabilities. For example, some gaming sites use these agreements to help protect younger gamers from unwanted attention. People who use foul language on a gaming site, might, under the guidelines, be barred from further use.

Household appliances usually come with a terms and conditions agreement.
Household appliances usually come with a terms and conditions agreement.

Term & conditions agreements are not limited to Internet use. In fact, virtually every household appliance one buys will come with such agreements. Sometimes they are printed out on cashier’s receipts. Most often they are used to protect the seller from prosecution if the person uses the household appliance in way that is not intended.

It is unclear how binding these agreements actually are. Unless one actually checks a box or signs an agreement, it is hard to know to what extent they actually legally protect someone. In most cases, however the statement is enough to protect the owner of a website, or the seller of a product or warranty from costly prosecution.

Tricia Christensen
Tricia Christensen

Tricia has a Literature degree from Sonoma State University and has been a frequent WiseGEEK contributor for many years. She is especially passionate about reading and writing, although her other interests include medicine, art, film, history, politics, ethics, and religion. Tricia lives in Northern California and is currently working on her first novel.

Learn more...
Tricia Christensen
Tricia Christensen

Tricia has a Literature degree from Sonoma State University and has been a frequent WiseGEEK contributor for many years. She is especially passionate about reading and writing, although her other interests include medicine, art, film, history, politics, ethics, and religion. Tricia lives in Northern California and is currently working on her first novel.

Learn more...

Discussion Comments

profess

Is there a general terms and conditions agreement that I can tailor to meet the needs of my company? I do not have the time or money to hire a lawyer to draft us a totally new document so I am hoping that that terms and conditions agreements are kind of like leases - If you are a small business you can use a standard form. Does this exist?

Ivan83

@jonrss - I completely agree with you. It can be difficult to make it through those agreements, especially when they print them so small, but I always read them because I know that as a consumer I am at a disadvantage and this is the only way that I can level the playing field.

jonrss

As tedious as it may be, it is really important to read the terms and conditions agreement before you sign anything. There are often obscure but consequential conditions contained in the agreement that can have a huge impact on you if something goes wrong.

Never assume that a company, or anyone you are doing business with, is on the level or above being manipulative and sneaky. It doesn't matter how big or well known the company is, none of them will hesitate to take advantage of you at the drop of a hat. The only way to protect yourself is to stay as informed as you can.

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    • The terms and conditions of a rental DVD include not copying it.
      By: toocan
      The terms and conditions of a rental DVD include not copying it.
    • Websites commonly require approval of terms and conditions before access is allowed.
      By: bloomua
      Websites commonly require approval of terms and conditions before access is allowed.
    • Household appliances usually come with a terms and conditions agreement.
      By: eurobanks
      Household appliances usually come with a terms and conditions agreement.
    • A terms and conditions agreement may hide text about personal information being shared with telemarketers.
      By: Media Bakery
      A terms and conditions agreement may hide text about personal information being shared with telemarketers.