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EULA vs Terms and Conditions: What's the Difference?

EULA vs Terms and Conditions: What's the Difference?

If you build software, apps, or SaaS products, you’ve probably wondered whether you need a Terms and Conditions agreement, an EULA, or both. Let’s clear up the confusion.

What is a Terms and Conditions Agreement?

Terms and Conditions (T&C) is a contract between a website or service and its users. It sets the rules for using the service, limits liability, protects intellectual property, and governs the relationship between the business and its customers.

T&C agreements are most commonly used for:

  • Websites and web applications
  • E-commerce stores
  • Online services and subscriptions
  • Social platforms and communities

What is an EULA?

An End-User License Agreement (EULA) is specifically a software license — a legal document that grants the end user permission to use a piece of software under specific conditions. It defines what the user can and cannot do with the software.

EULAs are most commonly used for:

  • Desktop software and applications
  • Mobile apps (iOS and Android)
  • Video games
  • Downloadable software products

Key Differences

FeatureTerms & ConditionsEULA
Primary purposeRules for using a serviceLicense to use software
User typeWebsite/service usersSoftware users
Grants a licenseNoYes
Apple App Store requiredNoYes
Google Play requiredNoYes
Web servicesYesSometimes

When Do You Need an EULA?

You need an EULA if you:

  1. Distribute software — any downloadable application, plugin, or tool
  2. Publish on the Apple App Store — Apple’s review guidelines require all apps to have an EULA
  3. Publish on Google Play — Google Play requires a privacy policy, and an EULA is strongly recommended
  4. Develop games — whether on PC, console, or mobile
  5. Distribute SaaS software — especially if users install an agent, extension, or desktop component

Can You Use Both?

Yes, and many businesses do. A SaaS company might have:

  • A Terms and Conditions agreement governing the subscription, billing, and acceptable use
  • An EULA governing the underlying software license

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