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The Caveats of Web Hosting Contract Terms

Posted on the 13 June 2013 by Nrjperera @nrjperera

Entering into any kind of contract requires the parties involved to look into the terms very closely for their own protection. It is no different with web hosting contracts. Customers of web hosting providers must make sure that they are participating in the contract with full knowledge of its  contents and possible consequences.

The Caveats of Web Hosting Contract Terms

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What is a Contract?

When two or more parties voluntarily enter into an agreement for the attainment of a lawful object wherein each is required to perform certain legal obligations, they are said to have entered into a contract. A contract will contain all conditions that will dictate the nature of how the agreement is to be carried out.

There is said to be no valid contract if and when deceit or fraud has been used to convince one party to enter into a contract. It is tantamount to forcing one person to sign a contract which he would not otherwise enter into if he knew the inclusion of certain conditions. Many service providers provide contracts that have too much gray area which may lead to future misunderstandings. Customers therefore are typically advised to read the fine print of the contracts they enter into to avoid unpleasant surprises in the future.

Caveats of Web Hosting Contract Terms

Caveats are simply warnings for specific things to look out for in web hosting contract terms. Web hosts providers whip up their respective marketing and promotional activities to gain customers. It is a sad fact that some will resort to misleading contract terms to get the nod of the customer.

Some things to look out for include:

1. The “Unlimited Offer”

It is very common to see web hosting providers offer unlimited bandwidth and space with a price that is usually rock-bottom. This is understandably very attractive to any customer. Often times, the hidden information here is that the customer will be forced to pay for a higher package once a certain limit is reached. It is just that such limit is not expected by the web hosting provider to be reached by the client thus the term “unlimited”.

2. The Hidden Charges

Many service providers will highlight their promo price in all their marketing materials and even in their formal communication. The same providers will conveniently forget to mention certain charges that will arise in using the service but will include it as part of the contract. Most customers will find find out that they eventually end with higher expenses than expected.

3. The Lock-in Period

Many providers will also choose to conveniently forget to mention to customers that there is a specific lock-in period to continuously enjoy the low price being offered. A long lock-in period can be very disadvantageous to customers since they will not be able to avail of better services without incurring penalties. Customers end up paying for poor service whether they like it or not.

Each customer must endeavor to find the best hosting service available to them before entering into any binding contract.


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