In October 2020, the network actively discussed the case of the Ukrainian online taxi service Uklon. The company's driver ran through a red light and crashed the client's Audi A7.
The repair of the car was estimated at 360-500 thousand hryvnia. Uklon itself declined to assume any responsibility for the incident, citing clause 5.2. user agreement.
In it, lawyers prescribed that the damage caused by the driver is compensated by the driver itself, and not by the company. The service only helps freelance drivers to find clients, but is not obliged to be held liable for improper driving and material damage.
The legal department of Uklon foresaw possible problems in advance and removed the risks in time using the appropriate paragraph.
What problems would Uklon have had without clause 5.2 in the user agreement (or Terms and Conditions)? The company would have to pay the injured party up to half a million hryvnia to restore the car. And also - to compensate for moral damage, pay hospital bills, etc. (in case of harm to health).
What causes problems with Terms and Conditions for apps, websites and mobile games
How often does a person read Terms of Conditions when they see the phrase “I agree with ... / I agree with…” during the installation or registration process in the application? Often, zero out of 10. If the case does not involve financial, criminal or personal liability, people tick the checkbox and move on. This is why the situations described above arise.
Visitors to Internet resources are not serious or ignore the user agreement. This naturally lowered the legal force of the document. Although Terms of Conditions are a useful tool to protect your own rights.
For the same reason, online business owners themselves forget about working out an agreement between the user and the company. In controversial situations, a well-written document helps to get out of the water.
If you decide to save on Terms and Conditions, you can, of course, download the template on the Internet and correct the text. It is possible that the company will be lucky and this document will turn out to be a formality. Only in reality is a developer's or legal department's mistake fraught with serious consequences. Therefore, it is important to prescribe conditions taking into account the specifics of the business.
What are Terms and Conditions and how not to work with a document
In order not to use many terms that are the same in meaning and complexity: Terms and Conditions, Terms of Use, user agreement, etc. - the people and lawyers have stuck with the consonant word "termza"
Termzy is an extremely useful document that helps to resolve disputes between the owner of an application, site or service and the users of the product. Well-written terms help speed up the process of filing a complaint, define the responsibilities of each party, and deal with copyright.
If you want to be safe, to exclude possible lawsuits or user dissatisfaction, focus on the specifics of your own business. For example, before drawing up the first sample of terms for an online store, study at least 5-10 user agreements of competitors. Analyzing the business and studying documents from other companies will help you understand the key points.
Common compilation mistakes
- Copying someone else's terms - formally, this way will work, because on the site or in the application there will be “text” that regulates the relationship between the company and the client. However, there are risks that in the future may lead to lawsuits and a damaged reputation;
- Self-customization of the template is a little better than copying. But you need to understand the nuances. A person without experience in IT law will suffer from his own carelessness. Often, newbies are confused about the conditions for returning money / goods or do not take into account the legislation of individual countries;
- Using a generator or service for customizing thermals - this method is already closer to what is needed for normal operation, but with reservations. The risk of violations in the drafting of clauses, determining the parties, conditions and liability is much lower.
How to solve the problem with thermals for online business owners
It is better to hire a team of lawyers who know how to write Terms and Conditions from scratch and are focused on the client's needs.
Pros :
- individual business analysis;
- detailed analysis of the rights and obligations of the legal entity (website, online store, service, application, etc.) and the user / visitor;
User and visitor are almost always different faces. That is why they have different rights and responsibilities. The expert will be able to understand who the document is aimed at and will not deprive any of the categories of your clients (actual or potential) . - unlimited number of edits;
- compliance with the country's legislation;
- the pro clearly distinguishes between primary and secondary positions;
An experienced lawyer does not waste time writing 100 unnecessary clauses to clarify confidentiality. Instead, attention is paid to payment and refund terms, rules for using free options, demo versions, and so on.
Cons :
- it takes time and effort to find an experienced IT lawyer;
- the services of a professional are more expensive than a service with templates or a lawyer from other fields.
What should be in correctly compiled terms
At Icon Partners, we have already drawn up over 1000 Terms and Conditions for our clients and we know exactly what is important to take into account in the document. A strong agreement should have at least 5-7 base points. The items are expanded or replaced depending on the specifics of the IT product.
It is imperative to register in thermals
- terms - it is indicated who the user is, the Service / Site, etc.
- goods and services - a list of what a company, application or service offers to customers;
- payment terms and price ;
- intellectual property - if the web resource has user generated content, you can leave comments or reviews, the company should remove responsibility and / or retain the rights to the content for the author;
- the moment of acceptance and the expiration time of the agreement - as soon as the checkbox is ticked, this means familiarity and agreement with the terms;
- additional clauses - specific requirements, conditions of return or changes to the user agreement.
It is better to draw up such agreements without bureaucracy, not forgetting about the legal side.
Avoid controversial and conflicting points in the document.