Terms of Service (sometimes referred to as “Terms of Use”) are the contractual terms that govern a customer’s or user’s access to and use of a product or service, typically covering usage restrictions, payment terms, IP, warranties, liability limits, and dispute resolution. In startup diligence and M&A, Terms of Service are reviewed to assess risk allocation, enforceability, and revenue mechanics, and inconsistencies between product behavior and Terms of Service can create legal exposure.
