Terms of Service


Agreement a between service provider and their clients or users that clarifies the conditions that a user must meet to use a service.

What is a Terms of Service?

Terms of Service, or ToS, can be likened to a user manual for your startup's SaaS product. It sets the rules for using your product or service and outlines the rights and responsibilities of both your startup and the user.

For example, if your startup offers a project management tool, the ToS would include how and why users can use your tool, any subscription fees and payment methods, any restrictions on use, and what happens if these rules aren't followed. The ToS serves as a contract between you and your users, helping to prevent misuse of your product and to protect your startup legally.

Who are the parties in a Terms of Service?

"Service Provider" or "Company" - the one offering the service or product

"User" or "Customer" - the one using or purchasing the service or product

What are the risks when signing a Terms of Service?

Not reviewing Terms of Service (ToS) carefully risks violating terms unknowingly, which could lead to account suspension or termination.

Ambiguous user rights and responsibilities may lead to service misuse, potentially causing legal issues.

Unclear dispute resolution terms might result in unexpected legal processes or costs. If data handling policies are vague, you might compromise your own privacy or data security.

Without clear service limitation terms, you might unknowingly overuse resources.

If terms regarding modifications and termination are unclear, you may face unexpected changes or loss of service.