A Restriction of Use Clause is a contractual provision designed to protect a business from liability in the event that its products or services are used in an unintended manner. This clause restricts the user of the product or service from using it in a manner that could cause harm, damage, or other negative consequences of the business or third parties. Restriction of Use Clauses are found in many types of contracts, including software licenses, service agreements, and end user license agreements. There are three main types of Restriction of Use Clauses: 1. Unauthorized Use Clause: This clause prevents the user from using the product or service for any purpose other than what is explicitly authorized by the contract. This type of clause helps protect the business from any liability that might arise from the user’s improper or unintended use of the product or service. 2. Non-Compete Clause: This clause restricts the user from competing with the business or engaging in activities that could potentially damage the business’s reputation or ability to generate revenue. This clause is commonly found in employment contracts. 3. Indemnification Clause: This clause requires the user to indemnify and hold the business harmless from any claims, liabilities, losses, damages, costs, or expenses arising from the user’s improper or unintended use of the product or service.