Terms of Use
An important legal statement on many web sites (and,
hopefully ALL ecommerce and business sites). They are statements of ownership and liability limitations. TOS
informs a visitor what they can and cannot do on a site,
and limit liability from third parties (links to other
websites, outside contributions on blogs, forums, etc.).
Among other things.

Terms of Use statements are typically created by
attorneys. For smaller companies, boilerplate terms
of use forms may be purchased and customized by
the purchaser.

Privacy Policy
Not usually a legal document, privacy policy is a
statement to the web visitor of how their privacy is
protected by the web site owner. A good privacy policy
is short, clearly written (no legal speak is best) and
states how information and email addresses that are
collected from visitors are and are not used.

A privacy policy gives a web visitor confidence in dealing
with a site in terms of how safely private information is gathered and handled.

Inexpensive and effective forms to help write good
privacy policies are available online if needed.