Terms of Service - Modification

One key paragraph or sentence to look for in an online terms of service is about 'modification' or 'changes' to the terms of service with or without notice to you. Although some companies may have to adjust their terms of service from time to time with or without your consent, you should still ask for notice so that you know what the modification or change is, so that you can determine if you want to continue doing business with this company.

Terms of Service - Limitation of Liability

It should come as no surprise that most terms of service will have a limited liability provision that caps the amount owed to the user in the event the service provider fails to live up to the terms of service. Take a glance at this section to be comfortable that you as the user may only be able to get up to the amount of any monetary cap if a dispute arises with the service provider. If at all possible to cap your damages as well, in the event you do not live up to the terms of service, that could at least set you both at a level playing field.

Terms of Service - Governing Law

While scanning through the terms of service, take a look at the 'governing law' provision. This will give you good insight into where the company is based out of, and where disputes may have to be brought, if any arise between you and a service provider that relates to the terms of service.

Terms of Service - Term

For any terms of service you enter into, you should be aware of the term and termination policies. For any service that you expect to use for only a short period of time, you should ensure that you have the ability to cancel without penalty at any time, or at least with notice within a reasonable time frame. If the terms indicate a long term and no termination policy, take the initiative to ask and get a response back in writing. If at all possible, have them sign off on a separate addendum with the proper term and termination that you both agree to.

Terms of Service - Spam

When you sign up for a service, check the privacy policy and the terms of service to determine what information a company will contact you about. It may be as simple as a newsletter via e-mail, however, it could also be solicitations from affiliated companies. Although you may eventually be able to opt out of that communication, it is a good idea to check ahead of time on how your contact information will be used, before it gets abused.