Terms of Service Template 2026: 17-Section Plain English ToS

The 4 sections that actually save you

Most founders treat ToS as a checkbox formality, copying a template into the footer and forgetting about it. That works until the first time something goes wrong, at which point four specific sections decide whether your business takes the hit or you do.

The complete 17-section structure

Every modern ToS covers the same 17 sections in roughly this order. Adding sections rarely helps; cutting standard sections almost always hurts.

1. Acceptance of Terms. How users agree (continued use, signup checkbox, etc.).
2. Description of Service. What you actually provide. One paragraph.
3. Eligibility and User Accounts. Age requirement (typically 13+, or 18+ for paid services), account security, prohibition on sharing credentials.
4. Acceptable Use. Prohibited activities and content.
5. User Content and License. What users post, what license they grant you to use it.
6. Intellectual Property. Your IP, trademarks, copyright notice.
7. Payment Terms. Billing cycle, auto-renewal, taxes (if you have paid plans).
8. Cancellation and Refunds. High-level — refer users to a separate Refund Policy.
9. Third-Party Services and Links. Disclaim responsibility for external sites.
10. Disclaimers. Service provided “as is”, no warranty of uninterrupted operation.
11. Limitation of Liability. See above.
12. Indemnification. See above.
13. Termination. By user, by you, effect of termination.
14. Governing Law and Dispute Resolution. Your jurisdiction, mandatory arbitration if you choose.
15. Changes to Terms. Notice period, deemed acceptance.
16. Severability and Entire Agreement. Standard boilerplate that prevents one bad clause from invalidating the whole document.
17. Contact Information. Email + business address.

SaaS-specific considerations

For SaaS businesses, three sections need extra attention beyond the generic template:

• Service Level Agreement (SLA) language. If you market “99.9% uptime”, the ToS should state what users get if you miss it (typically pro-rated credits, not refunds). Don't make SLA promises you can't back up — disgruntled customers will hold you to them.
• Data export rights. EU users have a GDPR right to data portability. Spell out the export format and how long users have to retrieve their data after cancellation.
• API terms. If you have an API, separate API terms (or a clear API section) prevent disputes about rate limiting, scraping, and resale of your data.

Shopify-specific considerations

For Shopify stores, the ToS interlocks with the Privacy Policy and Refund Policy:

• Order acceptance vs. order placement. The ToS should clarify that placing an order is an offer, not a contract. The contract forms when you accept the order. This prevents disputes about pricing errors.
• Inventory and pricing errors. Reserve the right to cancel orders if a pricing error or inventory shortage is discovered after order placement.
• Shipping and risk transfer. Specify when ownership transfers (typically on delivery to the carrier vs. delivery to the customer). Affects who's responsible if a package is lost in transit.

Pair this guide with our Shopify Privacy Policy guide and the Shopify launch checklist for the complete pre-launch document set.

Common ToS mistakes

• Auto-renewal language buried. Specifically illegal in California (CCPA) and the EU. Auto-renewal must be conspicuous, with a clear cancellation path.
• Limiting liability for “gross negligence” or “wilful misconduct”. Most jurisdictions don't enforce these limits. Trying to disclaim them often invalidates the entire limitation of liability clause.
• One-sided modification rights. “We reserve the right to change these terms at any time without notice” — courts increasingly reject this. State a notice period (30 days is standard).
• Mandatory arbitration without opt-out. Some jurisdictions require an opt-out window (typically 30 days from account creation). Without it, the arbitration clause may be unenforceable.

Frequently asked questions