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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.
EULAs are designed to protect the company that owns the software rather than the user of the software. If a user breaks the terms in your EULA, you can revoke their access to the software as well as have legal action taken against them.
When the user accepts the terms ? i.e. checking a box or clicking a button to indicate acceptance ? the Terms and Conditions become a legally binding contract. However, proper presentation and acceptance methods are key to enforceability.
User agreements like EULAs are legally binding contracts between the software author and the end-user. End User License Agreements are enforceable as long as it is clear that it is a contract and both parties can understand the terms.
It WILL hold up in court too if there was ever a need for it. An EULA is no different than a contract a movie star agrees to when they are hired to shoot a movie. Just because you don't physically sign something, it is still legally binding.
In the USA, EULAs are binding contracts and software distributed under them is licensed for use, not sold. You break the EULA, you lose your license. That's the law.
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.
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.
The downside of a license agreement is that it doesn't protect the consumer. The EULA protects only the copyright owner. In fact, not only does the vendor own the license, but they also legally own any private data that the consumer entered into the software.
Your EULA will be legally binding if you get valid consent to it. The best way to get valid consent is to have end users click a checkbox or take some other clear action to show they agree to the terms in the EULA before you allow them to download and access the software.