When there is a need for other parties to use a specific application, website, or to promote another business that is not their own, a usage agreement should be executed between both parties. Sometimes referred to as terms of use, user agreement, or end-user license agreement, this document is quite important to make sure that the parties involved are aware of the level of privacy, and other terms and conditions when it comes to utilizing a certain application or website. A usage agreement’s primary function is to set the conditions for which a user may use a program or software service. This is to ensure that there is a limit on how you can use a certain app, software, or website. In this article, let us discuss the importance of a usage agreement for businesses and how this will be able to protect a company’s products. Also, if you need to start writing this particular agreement, then check out our free usage agreement samples below.
10+ Usage Agreement Samples
1. Usage Agreement Template
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3. Free Basic Usage Agreement Template
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6. Software Usage Agreement
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8. Information Resources Usage Agreement
9. Warehouse Usage Agreement
10. Sites Usage Agreement
11. Facilities Usage Agreement
What Is a Usage Agreement?
A user or usage agreement is a binding document that protects your company’s legal interests, manages the use of your website, app, or software. The main purpose of this agreement is that it limits the legal obligations of the website owner, restricts abuse of software, explains how the software is licensed and clarifies the conditions under which the agreement can be terminated. A usage agreement is only applicable if your company relies on e-commerce, provides a third-party venue for others to buy and sell products, or has software or an online app that could be used by the general public.
How To Write a Usage Agreement
By providing a usage agreement, businesses are able to set certain rules of engagement with the service or product, this would also clarify and explain how and why you may suspend or ban people from your service, also you may avoid and manage any potential legal issues that may arise in the future. You have to make sure that your service or products are not illegally distributed or exploited, thus a usage agreement. Now, when preparing a usage agreement you must take note that each document is specialized so this may cater to the programs and services they cover. Yet there are certain elements that are common in all usage agreements, let us identify more of that below.
I. Contact Information
The names and addresses of both parties should be included in the agreement. As well as a statement indicating that both parties agree to the terms and conditions written in the document.
II. Non-exclusivity and non-transferrable clause
A non-exclusivity clause allows a third party to gain license of your software or application and a non-transferrable clause sets the foundation for filing a breach in contract lawsuit should it become a necessity in the future.
III. Modifications
The agreement should include provisions regarding the modification of the website, software, or application. This will prevent users from modifying these from the back end or altering its coding.
IV. Payment Details and Method
Include the payment details such as the fees and any additional charges for any user subscription or membership. Indicate how many months the validity of the subscription/membership and what kind of payment method is applicable (cash, credit, or checks)
V. Breach of Contract
In case there is a breach in the agreement, it is important that the user understands the implications. These provisions serve as guidelines on how a user can use the product or service and what is prohibited. Once breached, legal actions can be imposed.
VI. Termination Clause
If one or both parties wishes to end the agreement, then this clause would outline the respective rights of both parties when this takes place. Most termination clause also states that you have the right to terminate associations with customers with a reason or none at all.
FAQs
Why Is a User Agreement Important?
It is important because it sets the terms of how a certain application, software, or website could be used, how it works, and the copyright or patent, and helps limit your business from liability.
What are Business Agreements?
A business agreement is a contract or agreement between two parties in exchange for a service to be rendered or a product to be availed. This would contain the terms and conditions, payment, scope, and many others.
What Is the Purpose of an End-User License Agreement?
This acts as a contract between a developer and the end-user which grants the user a license to use the app and covers a series of important clauses that limit your own obligations as the vendor.
A usage agreement is a vital document if you need to let your users know how your product or service works and its terms and conditions. To make it easier for you to prepare don’t forget to download our free templates above!
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