Contract Sent Logo

What constitutes agreement with terms and conditions?

·

·

What constitutes agreement with terms and conditions?

When you’re building a tech startup in a space where the use of tech products is ubiquitous it’s easy to forgot the legal implications of the product that you’re building. From mobile applications to software platforms, these innovations have become an integral part of our daily lives. Behind the sleek interfaces and seamless functionalities lies an often overlooked aspect—agreeing to terms and conditions that govern usage. Understanding what constitutes agreement becomes pivotal for protecting your business and determining its viability.

If you haven’t seen the program Silicon Valley you should. In a startup comedy episode, founders face a costly oversight—they lacked a clause for users to confirm they weren’t minors, resulting in millions in fines. Whether downloading an app, signing up, or buying software, users encounter a lengthy document—the terms and conditions. It was a great example of the importance of terms and conditions. We’ve all seen them, or ignored them. But why are they some important for startup companys?

The Nature of Terms and Conditions

Downloading an app, signing up, or purchasing software means encountering a lengthy document—the terms and conditions, also known as “T&C” or “Terms of Service.” These outline rules, rights, and responsibilities for interacting with the tech product.

But what exactly constitutes your agreement to these terms?

Explicit Consent vs. Implied Consent – Agreement with Terms and Conditions

Explicit consent is the ideal scenario—a user actively reads through the terms and conditions and agrees to them by clicking a checkbox or tapping an “I agree” button. This deliberate action signifies the user’s acknowledgment and acceptance of the terms laid out by the tech product.

However, implied consent is a murkier territory. It implies that by merely using the product, the user agrees to the terms and conditions. A lot of apps use this to try and improve the customer experience. But this approach has sparked debates about users’ actual understanding and awareness of the terms they supposedly adhere to.

Challenges in Obtaining Consent

The sheer length and complexity of terms and conditions pose a significant challenge. Studies have shown that these agreements often contain convoluted legal jargon, making them intimidating and time-consuming to read. In a world where people have the attention spans of a Tik-Tok video, users are more inclined to skim through or skip these documents entirely, leading to potential misunderstandings about their rights and obligations.

Moreover, the presentation of these agreements plays a crucial role. When buried within a lengthy scrollable window or displayed in small font sizes, users might overlook or dismiss them without a second thought.

Key Elements of a Valid Agreement

To consider an agreement with terms and conditions valid and legally binding, specific elements must be in place:

  1. Clear Presentation: The terms must be easily accessible, prominently displayed, and written in understandable language to ensure users can comprehend their implications.
  2. Explicit Consent: Where possible, users should actively consent to the terms by taking an affirmative action, such as checking a box or clicking a button, indicating their agreement.
  3. Notifying Changes: Tech companies should notify users of any modifications to the terms and provide an opportunity to review and accept these changes.
  4. Fair and Reasonable Terms: Courts often scrutinize terms and conditions to ensure they do not unfairly favor one side over the other.
manage contract negotiations
Set Tasks, Negotiate Faster

The Role of Ethical Responsibility

Beyond legal obligations, tech companies hold an ethical responsibility to ensure transparency and user comprehension of terms and conditions. Simplifying language, using clear examples, and providing summaries can enhance user understanding and foster trust between the company and its users.

The agreement to terms and conditions for a tech product involves a delicate balance between legal requirements and user comprehension. While companies have a legal obligation to outline their terms, the responsibility also lies in presenting these terms in a user-friendly manner. As users, it’s crucial to stay vigilant and aware of the agreements we enter, recognizing that these terms and conditions govern our interactions with tech products.

In an ideal scenario, companies should strive to bridge the gap between legal compliance and user-friendly presentation, fostering a transparent and mutually beneficial relationship between users and tech providers.

What Constitutes Agreement with Terms and Conditions?

When it comes to startups and tech products, where agreements are often made with the click of a button, understanding what constitutes agreement with terms and conditions is pivotal. To delve into this further, Contract Sent aligns with industry best practices by incorporating various acceptance mechanisms. Users can formally agree to terms and conditions through checking the check box when signing up, adding a layer of formality to the process. Simultaneously, checkbox approvals ensure that users actively acknowledge and accept the terms presented. What constitutes agreement with terms and conditions? The act of ‘opting in’ as an action by the user constitutes this. Other ways people can ‘opt in’ are below.

1. Digital Signatures and Checkbox Approvals:

  • Users can formally agree to terms and conditions through digital signatures, adding a layer of formality to the process. Simultaneously, checkbox approvals ensure that users actively acknowledge and accept the terms presented.

2. Scroll-Through Confirmation:

  • In a similar vein, in certain scenarios, agreement is established by requiring users to scroll through the entire document. This practice ensures that users are aware of the terms they are agreeing to.

3. Task-Driven Acceptance:

  • Moreover, task acceptance features ensures that users actively engage with and accept the terms associated with their tasks.

4. Implicit Agreement Through Usage:

  • Furthermore, by utilizing certain services, users implicitly agree to its terms. This implicit agreement is reinforced by the platform’s user-friendly interface and value-driven features.

Whatever method of agreement with terms and conditions your company looks to implement it’s important to understand that these agreements are binding and not only that but you have the responsibility to update your users when your terms are updated. This ensures the continuation of informed agreement with terms and conditions that have been laid out.


ABOUT THE AUTHOR
Contract Sent

A contract management system built for startups to manage, negotiate and report on their SaaS contracts.

Contract Sent is not a law firm, this post and subsequent pages on this website do not constitute or contain legal advice. To understand whether or not the ideas and guidance on the Contract Sent website is applicable to your business, you should consult with a licensed attorney. The use and accessing of any resources contained within the Contract Sent site do not create an attorney-client relationship between the user and Contract Sent.

ABOUT THE AUTHOR

follow us on linkedin

Startup Contract Management

Contract Tracking

Document Comparison

Contract Storage

GET STARTED TODAY



Download an MRR Waterfall Template
contract template download
Download a SaaS Contract Template
contract sent nda template
Download an NDA Template