An EULA is not quite the same as a Service Level Agreement (SLA), although they are often confused as the same thing.
The End User License Agreement regulates the relationship between the developer and the end user. A Service Level Agreement sets out the actual service details, including what end users can expect and what to do if they have a complaint.
In practice, then, many developers use both SLAs and EULAs, but we're talking specifically about EULAs here.
Let's take a closer look at these important agreements and what information yours should include.
User License Agreement
An EULA is a specific contract between the software creator, developer, or publisher, and the individual end user who purchases the software. The contract gives the user a right to use a copy of the app or software in a specific way, subject to clear conditions.
The end user can't download or install the software copy until they agree to these conditions of use. In other words, think of an EULA like a rental agreement. The user pays to use the software, but the developer still owns it.
This is important because there's a common misconception that end users "own" their copy of your app. People often assume that when they buy something, it belongs to them. However, all the end user has is a functioning copy of your software - not rights to the software itself.
Benefits of Having an End User License Agreement
It's vital that you draft and publish an EULA on your website for many reasons. However, there are a few reasons in particular that we'll draw your attention to.
Under the Law
An EULA is legally binding.
Why? Because it's a legally enforceable contract between two consenting parties - you, and the individual user.
Since an EULA is a contract, contract law applies. Whichever jurisdiction you're in, contracts are typically only valid if they are:
What this means in practical terms is that you can enforce the contract if the user agrees to it and the terms are not unclear or unfair.
So, how do you ensure that you have a legally binding contract? By including certain clauses.