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An End User License Agreement (EULA) is a legal contract between the Software Vendor and the End User of the software or application.
An EULA encourages updates and improvements in the software by protecting the IP rights of the Software Vendor.
An EULA typically appears before an End User installs the software.
This EULA legal document creates a comprehensive and flexible End User Licence Agreement (EULA) for any software application and works for both cloud and on-premises applications.
You can limit the scope of the licence to particular geographical regions and permitted purposes (eg, business or personal use) and you can choose whether support and maintenance is included within the scope of this agreement.
As it typical for an EULA, this automated legal document functions as an umbrella agreement that governs all licences, on the basis that the terms of particular subscriptions/packages (eg, pricing, feature inclusions, user limits, etc) are defined elsewhere, such as in a proposal or quote or on the licensor’s website.
This EULA can be customised to the terminology that the licensor uses for its subscriptions.
This EULA will set out the standard licence duration, which can be overridden by the terms of particular subscriptions.
Subscriptions can be paid or royalty-free, with a single upfront payment or periodic billing.
There are lots of billing options including manual invoicing as well as automatic payments via credit/debit card and bank account direct debits.
Naturally, this EULA is drafted to favour the licensor with disclaimers and limitations of liability.
An EULA is typically applied to online purchases of software and apps.
A Terms of Service (TOS) agreement is applicable when the Software Vendor is offering a service and does not go into as much detail as an SLA.
A Service Level Agreement (SLA) is used when a company is offering a service that a customer needs to be reliable, supported, and consistent, such as an internet service provider.
It’s common to have both a TOS agreement and SLA.
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A force majeure clause is a method of allocating the risk of a disruptive event. It is a broad catch-all provision whereby the parties list categories or specific instances of otherwise frustrating events, together with the party or parties to bear the risk of the event occurring.
The clause can also grant options to vary, suspend or terminate the contract to one or more of the parties. [1]
Force majeure clauses form part of a contract’s express terms, subject to the conventional methods of construction.
Absent a force majeure clause, it is unlikely a contract’s commercial purpose would suggest that such a provision is so apparent that it goes without saying [2], meaning a court is likely to refuse to imply it.
Further Reading:
For a more detailed discussion please refer to our blog article “Force Majeure Clauses & Frustration: Why the COVID-19 Pandemic is a Wake-Up Call" by Shakvaan Wijetunga | Virtual Intern at Blue Ocean Law Group℠.
Footnotes:
[1] Eg., Yara Nipro P/L v Interfert Australia P/L [2010] QCA 128, [26].
[2] BP Refinery (Westernport) Pty Ltd v Hastings Shire Council (1977) 180 CLR 266, 283.
Important Notice:
This FAQ is intended for general interest + information only.
It is not legal advice, nor should it be relied upon or used as such.
We recommend you always consult a lawyer for legal advice specifically tailored to your needs & circumstances.
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