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Terms of Service Form

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TERMS OF SERVICE AGREEMENT

This Terms of Service Agreement ("Agreement") is entered into as of by and between Service Provider: , with principal place of business at , and Client: , with principal place of business at .

RECITALS

WHEREAS, Provider develops, hosts, and maintains certain software, platforms, content, and services more fully described below and in Exhibit A (the "Services"); and

WHEREAS, Client desires to obtain access to and use of the Services, and Provider is willing to provide such access upon the terms and conditions set forth in this Agreement.

WHEREAS, the parties intend by this Agreement to set forth the rights and obligations of each party with respect to the Services.

NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the parties agree as follows:

1. DEFINITIONS

1.1 "Confidential Information" means non-public information disclosed by a party that is identified as confidential or that reasonably should be understood to be confidential given the nature of the information and the circumstances of disclosure, including without limitation business and technical information, trade secrets, product roadmaps, and Client Data.

1.2 "Client Data" means all electronic data, content, information, and materials provided by or on behalf of Client through use of the Services.

2. SERVICES; LICENSE

2.1 Services. Provider shall provide the Services as described in the service description below and in any attached exhibits. Provider shall use commercially reasonable efforts to make the Services available in accordance with the terms of this Agreement.

2.2 License. Subject to Client's compliance with this Agreement, Provider grants Client a non-exclusive, non-transferable, revocable license to access and use the Services solely for Client’s internal business purposes during the Term.

3. CLIENT OBLIGATIONS; RESTRICTIONS

3.1 Client shall: (a) provide timely cooperation and information reasonably requested by Provider; (b) comply with all applicable laws and regulations in Client’s use of the Services; and (c) be solely responsible for the accuracy, quality and legality of Client Data.

3.2 Client shall not: (a) reverse engineer, decompile, or disassemble the Services; (b) attempt to gain unauthorized access to the Services or Provider's systems; or (c) use the Services to store or transmit material in violation of applicable law.

4. FEES AND PAYMENT

4.1 Fees. Client shall pay Provider the fees set forth in the payment terms. Fees are due in U.S. dollars and are non-refundable except as expressly provided in this Agreement.

4.2 Late Payments. Overdue amounts shall accrue interest at the lesser of 1.5% per month or the maximum lawful rate. Client shall reimburse Provider for reasonable collection costs.

5. TERM AND TERMINATION

5.1 Term. The term of this Agreement begins on the effective date set forth above and continues for months unless earlier terminated in accordance with this Agreement.

5.2 Termination for Cause. Either party may terminate this Agreement for material breach by the other party if the breaching party fails to cure such breach within thirty (30) days after receipt of written notice specifying the breach.

5.3 Effect of Termination. Upon termination, all licenses granted to Client shall immediately cease and Client shall pay all unpaid fees accrued through the effective date of termination. Sections regarding Confidentiality, Indemnification, Limitation of Liability, and Intellectual Property shall survive termination.

6. CONFIDENTIALITY

6.1 Protection. Each party shall protect the other's Confidential Information with the same degree of care it uses to protect its own Confidential Information, but in no event less than reasonable care.

6.2 Permitted Disclosures. Confidential Information may be disclosed to the extent required by law, provided the receiving party gives prior notice to the disclosing party and cooperates to seek confidential treatment.

7. INTELLECTUAL PROPERTY

7.1 Ownership. Provider retains all right, title, and interest in and to the Services, software, documentation, and Provider's pre-existing intellectual property. Client retains all right, title and interest in Client Data.

7.2 Feedback. Any feedback provided by Client concerning the Services shall be deemed non-confidential and Provider may use such feedback without restriction.

8. WARRANTIES; DISCLAIMER

8.1 Provider Warranty. Provider warrants that it will provide the Services in a professional manner in material accordance with the applicable documentation and this Agreement. For any breach of this warranty, Client's exclusive remedy and Provider's sole obligation shall be the re-performance of the defective Services.

8.2 DISCLAIMER. EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT, THE SERVICES ARE PROVIDED "AS IS" AND PROVIDER DISCLAIMS ALL OTHER WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY, INCLUDING WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT.

9. LIMITATION OF LIABILITY

9.1 EXCEPT FOR LIABILITY ARISING FROM A PARTY'S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, IN NO EVENT SHALL EITHER PARTY'S AGGREGATE DIRECT DAMAGES EXCEED THE FEES PAID BY CLIENT TO PROVIDER IN THE SIX (6) MONTHS PRECEDING THE CLAIM. IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES.

10. INDEMNIFICATION

10.1 By Provider. Provider will defend, indemnify and hold Client harmless from any third party claim alleging that Provider's delivery of the Services infringes a valid patent, copyright or trademark of a third party, provided Client gives prompt notice and reasonable cooperation.

10.2 By Client. Client will defend, indemnify and hold Provider harmless from any third party claim arising from Client's use of the Services in violation of this Agreement or applicable law.

11. NOTICES

All notices required or permitted under this Agreement shall be in writing and delivered to the addresses set forth below or to such other address as a party may designate by notice.

12. AMENDMENTS; WAIVER

12.1 Amendment. No amendment or modification of this Agreement is valid unless in writing and signed by authorized representatives of both parties.

12.2 Waiver. Failure to enforce any provision shall not constitute a waiver of future enforcement of that or any other provision.

13. GOVERNING LAW; DISPUTE RESOLUTION

This Agreement shall be governed by and construed in accordance with the laws of the State of , without regard to its conflicts of law principles. The parties consent to the exclusive jurisdiction and venue of the state and federal courts located in the selected jurisdiction for disputes arising under this Agreement.

14. ENTIRE AGREEMENT; SEVERABILITY

14.1 Entire Agreement. This Agreement, including any exhibits and schedules hereto, constitutes the entire agreement between the parties and supersedes all prior and contemporaneous agreements, proposals and communications, whether written or oral, relating to the subject matter hereof.

14.2 Severability. If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

15. COUNTERPARTS

This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. Signatures delivered by electronic means shall be effective as originals.

EXECUTION

The parties, intending to be legally bound, have executed this Agreement as of the dates indicated below.

Provider Name:

By:

Date:

Client Name:

By:

Date:

Enter text✕

What the Terms of Service Form Is

A Terms of Service Form is a written agreement that sets the contractual relationship between a service provider and its users or clients. It defines permitted uses, obligations, limitations of liability, payment and termination terms, and dispute resolution. For online services this document also explains consumer consent to electronic records and governs access, modification, and enforcement of rights. A clear Terms of Service reduces ambiguity, aligns expectations, and creates an auditable record of the rules that apply to the parties and the service being provided.

Why a Clear Terms of Service Form Matters

A well-drafted Terms of Service Form limits legal exposure, clarifies responsibilities and remedies, and documents user consent to policies and fees. It supports enforceability under U.S. electronic signature law when executed with appropriate intent, consent, attribution, and retention.

Why a Clear Terms of Service Form Matters

Who Typically Uses This Form

Use the form where standardized terms are preferable to repeated bespoke negotiations, and where electronic execution and storage are desired.

  • SaaS and software vendors managing subscriptions and user conduct, ensuring consistent policy enforcement.
  • Professional service firms and consultants documenting scope, billing, and liability limits in client engagements.
  • Marketplaces and platforms that require standardized user rules for buyers, sellers, and third-party integrations.

Core Elements to Include in a Professional Terms of Service

A professional Terms of Service Form groups operational, legal, and administrative provisions so parties can find obligations, limitations, and remedies quickly. Keep language precise and avoid vague standards.

Parties

Full legal names and entity types for all contracting parties, including doing-business-as names and registered addresses for service.

Scope

Clear description of the services, permitted uses, and any excluded activities or prohibited conduct to set expectations and reduce disputes.

Payment Terms

Fees, billing intervals, late payment remedies, refunds and any trial or promotional pricing with precise calculation examples.

Term and Termination

Initial term, renewal rules, termination for convenience or breach, and post-termination obligations including data handling.

Liability Limits

Caps on damages, disclaimers of consequential damages, indemnification procedures and insurance obligations where applicable.

Dispute Resolution

Governing law, venue, and whether disputes must proceed via arbitration, including any notice or cure periods required.

Required Information and Fields at a Glance

Full Legal Name: Exactly as on government ID
Business Address: Street, city, state, ZIP
Effective Date: MM/DD/YYYY
Scope Summary: Brief service description
Payment Terms: Amount and frequency
Signature Block: Typed or signed name

Step-by-Step: Completing a Terms of Service Form

Follow these sequential actions to prepare, review, and execute the Terms of Service with minimal rework and legal risk.

  • 01
    Draft Core Terms: Assemble scope, fees, term, and liability provisions first.
  • 02
    Review Requirements: Check regulatory, privacy, and industry clauses for compliance.
  • 03
    Set Signing Order: Decide whether a single signer or countersignatures are required.
  • 04
    Execute and Store: Collect signatures, save final PDF and preserve audit trail.

Configuring an Online Signing Workflow

Set up the digital workflow so signers see only relevant fields and the process captures required evidence for enforceability.

Field Configuration
Signer Roles Assign primary signer and countersigner order
Authentication Level Email link, SMS code, or stronger KBA
Required Fields Mark required fields and add conditional logic
Audit Trail Enable IP, timestamp, and action logs

Where to Send and How Submissions Are Routed

Common destinations and routing methods for a Terms of Service after signing depend on whether it is employer-to-consumer, B2B, or platform-to-user.

  • Signed Parties: Each party receives a final executed PDF copy
  • Internal Records: Store master copy in legal or contract repository
  • Accounting: Send invoice and payment instructions to billing team
  • Compliance Archive: Retain audit trail and signed record for audits

Digital Signing and eSubmission Considerations

Make sure the chosen eSignature platform meets authentication, retention, and integration needs before executing the Terms of Service.

  • Authentication: Email, SMS, or stronger identity checks
  • File Formats: PDF and DOCX for archiving
  • Integrations: Connect to CRM and document storage

Key Timing Rules and Notice Periods to Include

Explicit timing provisions reduce disputes; define notice windows, cure periods, renewal deadlines, and effective timings for updates or terminations.

Notice to Terminate:

Typically 30 days written notice for convenience terminations

Cure Period:

Commonly 10–30 days to remedy a breach

Renewal Window:

Specify when renewals auto-renew or require affirmative consent

Change Notice:

State how far in advance policy changes are posted to users

Payment Due:

Net 30 or other specific invoicing terms

Common Mistakes to Avoid When Preparing the Form

  • Using ambiguous scope language that invites disputes over deliverables and responsibilities.
  • Failing to name the correct legal entity or authorized signatory, which can void enforcement.
  • Relying on implied consent rather than explicit electronic consent and disclosure when consumer-facing.
  • Not preserving a reliable audit trail showing intent, attribution, and time of each signature.

Penalties and Legal Risks of a Faulty Terms of Service

Contract Invalidity: Risk that ambiguous clauses are unenforceable
Regulatory Fines: Potential violations under privacy or consumer laws
Damages Exposure: Uncapped liability for service failures
Data Breach Costs: Notifications and remediation expenses
Litigation Expenses: High defense and settlement costs
Reputational Harm: Customer loss and trust erosion

eSignature Pricing and Feature Comparison

Compare typical starting prices and core features for common eSignature vendors; signNow is listed first per comparison conventions.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial, no credit card Varies Varies Varies Varies
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Frequently Asked Questions About the Terms of Service Form

Answers to common questions about e-signing, enforceability, modification, and storage for Terms of Service documents.


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