How to draft terms of service - 5 top tips to get it right (including terms of service template)

How can my business benefit from a well-drafted terms of service template?

As a service provider, supplying services to your customers will be at the very heart of your business. It’s therefore really important to make sure that your business is properly protected when providing those services, in order to guarantee revenue, protect your brand and safeguard your confidential information.

Terms of service are a set of terms and conditions that set out the legal obligations and restrictions that will apply to the provision and receipt of services. More information about the key terms that will be included can be found via this checklist.

How do I draft a terms of service agreement for my business using a terms of services template? 5 top tips!

1. Legal vs commercial

The best terms of service templates contain a balance of commercial and legal terms:

1. Commercial terms - the terms of service template should include a section to set out exactly what services are being provided and the price payable for those services. Other commercial terms such as key milestones, deliverables to be provided and timeframes for performance may also be included. The general rule is the more detailed the better - including detailed information about the services being provided will avoid confusion and misunderstandings in the future about exactly what each party is expecting.

2. Legal terms - as well as commercial terms, a well-drafted service contract template will include legal clauses that include protections for each party in relation to the supply and receipt of the service. This will likely include terms that protect confidential information and intellectual property rights, limit liability and provide remedies where one party breaches the contract. More information about the types of legal terms that will be included can be found via this checklist.

2. Have a clear acceptance process

A terms of service template will contain the commercial and legal terms that apply to the service provisions. But having those terms in place will be of little use unless there is a clear way for the customer to agree to, or accept, those terms. Failure to accept these terms could mean that the customer disputes them in the future, and argues that they do not apply. Terms of service can be accepted by tick boxes on websites, or by incorporating them into an order form that the customer signs.

3. Know your audience

It is important to ensure that you use a terms of service template that is appropriate for the type of customers that are purchasing the services that the terms of service relate to. For example, if the customers are consumers, consumer protection laws have specific rules about what terms of service must include and how they must be drafted. To find out more about terms of service agreements for consumers, read these FAQs. In contrast, as a general rule, terms of service for B2B sales can include more robust and supplier-friendly terms.

4. Tailor for your industry

There are a number of different types of terms of service templates that contain different terms depending on the type of services they relate to. For example, if the services include the provision of software then specific licensing terms will also need to be included alongside the standard terms that relate to the provision of services. If the services will be provided on multiple occasions, a framework agreement would be preferable to a one-off contract. Read this guide to find out which terms of business template will be more suitable for your business. Certain industries may also be legally required to include additional terms in their terms of service template (e.g. if financial services are being provided), so make sure you check whether any industry-specific legal requirements apply too. If it is a regulated industry, the regulator generally will provide guidance on what is required (e.g. the FCA for financial services).

5. Include flexibility

To provide maximum flexibility to the supplier of services, it is prudent to include a variation clause in your terms of service template. This type of clause will allow you to update the terms from time to time - whether that is because the law changes so new terms are required, or because your business operations have adapted in a way that needs to be reflected in updated terms of service.

Can I create my own terms of service agreement?

Yes! With Docue, you can easily adapt our terms of service template to suit your business and provide maximum protection. Lawyer-drafted guidance notes will guide you through the process, so you know which clauses to pick for different scenarios. Simply click through the intelligent tick box options and text box answers and you’ll have a comprehensive, tailored, and ready-to-use terms of service agreement in no time.

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