Key Takeaways

  • A user agreement outlines the rights and responsibilities of website or app users and providers.
  • Clickwrap agreements are more enforceable than browserwrap agreements.
  • A user agreement is necessary when engaging in transactions, collecting data, or allowing user-generated content.
  • The content now includes structure tips, enforcement strategies, key clauses, and a simple user agreement template.
  • New sections explain the difference between agreements, disclaimers, and policies; offer a template; and detail enforcement tips.

Are you wondering how to write a user agreement? Be sure to include all the important points based on the transactions you do through your website or mobile application. Organize the agreement into different sections to make it easy for your users.

What Is a User Agreement?

A user agreement is an agreement made between the owner, administrator or provider of a web or mobile application based service and the user of such a service, that defines the rights and responsibilities of both the parties. Privacy policies, website terms and conditions, etc. are all examples of a user agreement.

Sometimes, you may be legally required to have a user agreement. For example, if you collect personal information from the user through your mobile app or website, you must let your users know about it through a legal statement, typically known as privacy policy.

It's a good idea to divide a user agreement into different sections. Sometimes, you may want to have multiple different agreements, rather than a single lengthy agreement. For example, a user looking for specific information pertaining to returns and refunds should be able to find it easily in a separate section or agreement, without having to dig through lengthy terms and conditions relating to various other topics. You can either have a separate section for returns and refunds under the main agreement or have an altogether separate agreement for returns and refunds policies.

How User Agreements Differ from Other Policies

A user agreement is sometimes confused with other website legal documents, but it serves a distinct purpose. Here's how it differs:

  • User Agreement vs. Privacy Policy: A privacy policy discloses how you collect, use, and store personal data, while a user agreement focuses on the rules for using the site or app.
  • User Agreement vs. Terms and Conditions: These are often used interchangeably. However, some businesses use "terms and conditions" more broadly to cover areas like pricing, conduct, and liability.
  • User Agreement vs. Disclaimer: A disclaimer limits liability for certain outcomes (e.g., not responsible for third-party content), but it doesn't establish a contractual relationship like a user agreement does.

Types of User Agreements

There are basically two types of user agreements:

  • Browserwrap
  • Clickwrap

Browserwrap Agreements

These agreements are basically a notice informing the users about terms and conditions they are subject to. For example, a website may state something like “by continuing to use this website you agree to the terms of use of this website.” Sometimes, a hyperlink may be provided to take the user to the terms of use. Browserwrap agreements do not require the users to actually read or accept the terms of use as a precondition to using the services they pertain to. Courts are often hostile toward such agreements.

Clickwrap Agreements

Clickwrap agreements require the users to take certain affirmative action as an acknowledgement of their consent. Typically, such agreements require you to click a check box accepting the terms of use. Some agreements may even require you to scroll through the entire agreement before you can click the check box.

Legally, clickwrap agreements are far stronger than browserwrap agreements. However, some businesses may still favor browserwrap agreements, since these agreements are comparatively less likely to make the customers leave the website.

If you decide to place a browserwrap agreement, you should take the following steps to increase the chances of enforceability of such an agreement:

  • Prominently display the agreement link, preferably at the top of the webpage.
  • Make the wordings and hyperlink stand out from the rest of the content.
  • Prominently display the notice that the user is legally bound by the agreement.

Consent Banners

The consent banner method follows a middle path between clickwrap and browsewrap agreements. It allows the users to use your services, but does not assume their consent. Consent banners continue to appear at the top, bottom, or side of the users' screen asking them to click the checkbox or click the button in order to consent to the terms of use.

Do You Need a User Agreement?

You must have a user agreement in the following cases:

  • If you sell goods or provide a service through your website or application
  • If you collect data from users of your website or application
  • If you allow users to post content on your forum
  • If you allow users to buy and sell goods or services on your platform
  • If you engage in online commerce in any other manner

You need not have a user agreement if your website only provides information, but does not transact any business or gather any data. However, it's better to have some statement setting out the conditions of use of your website.

Key Clauses to Include in a User Agreement Template

To make your user agreement clear, enforceable, and comprehensive, include the following essential clauses:

  • Acceptance of Terms: A statement that the user agrees to the terms by using the service.
  • User Responsibilities: Outline acceptable and prohibited behavior.
  • Account Terms: If users can register accounts, include details on username, password, and account termination.
  • Payment and Billing (if applicable): Detail payment processes, subscription models, and refund policies.
  • Intellectual Property Rights: Clarify who owns content on the platform and what users are allowed to do with it.
  • Dispute Resolution: Specify whether arbitration or a specific jurisdiction applies.
  • Limitation of Liability: Minimize liability in case of damages from service use.
  • Modifications to the Agreement: Reserve the right to update terms, with a note on how users will be informed.

These sections form the backbone of any solid user agreement template and help protect your legal interests​.

Example of a User Agreement Template

Here's a simplified user agreement template that can be customized for your business:

**User Agreement**

Effective Date: [Insert Date]

By accessing or using [Company Name]'s website/app, you agree to comply with and be bound by the terms outlined in this User Agreement.

**1. Eligibility** You must be at least [Age] years old and have the legal capacity to enter into contracts.

**2. Use of Services** You agree not to misuse the service, including spamming, distributing malware, or engaging in unlawful conduct.

**3. Intellectual Property** All content provided through the service is owned by [Company Name] or its licensors. You may not reproduce, modify, or distribute it without permission.

**4. Termination** We reserve the right to suspend or terminate accounts that violate these terms.

**5. Disclaimers and Limitation of Liability** Use the service at your own risk. We are not liable for damages arising from use or inability to use the service.

**6. Governing Law** This Agreement is governed by the laws of [State/Country].

[Optional: Add clause for arbitration or jurisdiction]

If you do not agree with these terms, do not use the service.

This template should be tailored to reflect the actual activities and legal requirements of your business​.

Steps to Take When Sued by a User

If you have a user agreement and still a user sues you, take the following steps:

  • Find out the date of acceptance by the user.
  • Prove that the user accepted the terms of use.
  • If you have multiple versions, find out which version the user accepted.
  • Find out the date of modification to the user agreement.
  • Find out whether the user accepted any modifications.

Base your response on the above findings. You can make use of web archives like the Wayback Machine if required.

How to Make Your User Agreement Enforceable

To ensure your user agreement holds up legally, follow these best practices:

  • Use Clickwrap Whenever Possible: Requiring users to actively check a box or click "I Agree" boosts enforceability.
  • Maintain Version History: Store all versions of the agreement and timestamps of when each user accepted the terms.
  • Notify Users of Changes: If you update the agreement, notify users and require acceptance of the new version.
  • Make Terms Easily Accessible: A link to the user agreement should be clearly visible—ideally in the website footer and during account creation.
  • Track Acceptance Logs: Use backend logging to confirm and retrieve user consent information if challenged in a dispute​​.

Frequently Asked Questions

  • What is a user agreement template?
    A user agreement template is a pre-formatted document that outlines standard legal terms and conditions users must agree to when accessing a service.
  • Is a user agreement legally binding?
    Yes, especially if implemented through a clickwrap method where users actively consent. Enforceability also depends on clarity and fairness of the terms.
  • Can I write my own user agreement?
    Yes, but it’s recommended to consult a legal professional to ensure it covers all necessary clauses and complies with applicable laws.
  • What’s the difference between a user agreement and a privacy policy?
    A user agreement governs how users interact with your service; a privacy policy explains how you collect and handle user data.
  • When should I update my user agreement?
    You should update it whenever there are changes to your service offerings, legal obligations, or business practices. Always notify users of any updates.

If you need help with how to write a user agreement, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.