A Terms of Use agreement is a contract if it's clear, reasonable, lawful, and has been agreed upon.
Creating a Terms of Use agreement is not a legal requirement. However, a Terms of Use agreement is a simple, effective way to help your company avoid legal issues and is thus highly recommended regardless of not being required.
Legally speaking, a Terms of Use agreement is the same thing as a Terms and Conditions agreement.
We're using the phrase "Terms of Use" to describe a general agreement between you and your users. Different companies use different names for this type of agreement, including:
These documents usually serve the same purpose but can be used in different contexts.
A Terms of Use agreement is very different from a Privacy Policy.
A Privacy Policy is a form of notice that explains the ways in which a company processes personal information.