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Generally speaking, EULAs are enforceable contracts, to the extent that any other contract is enforceable (at least in the U.S.). Obviously, the usual exceptions apply, such as unconscionability and UCC limitations on warranty waivers and such.
Also known as software license agreement, EULAs are essentially enterprise license agreements for end-users and software vendors instead of companies and software vendors. They're usually given to users during the software set-up or installation stage and must be signed before completing installation.
A EULA is a legally enforceable contract between you and the end user and can protect your intellectual property and copyright. Under the laws of any jurisdiction, a contract is only binding when both parties give their mutual consent to the contract's terms.
If a user copies and sells the software, for example ? a common violation of EULA terms ? the creator can seek recourse. The license to use the software can be revoked. The user's account could be locked down, preventing access.
Although EULAs vary, every EULA should include clauses explaining: The enactment date. The binding nature of the agreement. Your contact details and full business name designation. The governing laws. Permitted and restricted uses. Termination conditions. Warranties and limitation of liability. Related agreements.
If the app or software has to be purchased by the user, they are typically required to agree to the EULA before paying, which means that there is no harm done if the user doesn't agree to the licensing agreement. Some companies include licensing agreements to maintain control of their image.
The EULA does not represent a legally binding contract but, instead, an agreement that the end user will adhere to the fundamental usage requirements and specific terms of the EULA. In reality, the consumer is actually renting (or leasing) a license from the app's creator (or a vendor).
An end-user license agreement or EULA is a contract that users must sign before they can finish installing software. Besides protecting software vendors' and licensors' rights, EULAs also manage end-users' expectations and establish how they can or can't use the software.