Capterra Glossary
Sales
Terms of Service (TOS)

Capterra Glossary

Terms of Service (TOS)

Terms of service (TOS) is a legal agreement between a service provider and a user. It helps maintain transparency between both parties by stating important details, such as user rights, liability provisions, and privacy policies. 

Most software service providers use TOS agreements to prevent abuse in cases of disagreement and to claim ownership of their content. A user must abide by the TOS to fully access the company’s services.

What Small and Midsize Businesses Need to Know About Terms of Service (TOS)

Small and midsize businesses (SMBs) in the software development industry often use TOS to protect themselves legally in case a dispute arises. SMBs that sell software-as-a-service (SaaS) can create a detailed TOS agreement to state rules and regulations to protect the relationship between the user and the business.

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