Identify the business and the user
Because the EULA is a contract, a vital function is to identify the relevant parties. Clearly establish who the licensor and licensee both are, so that they may be legally held responsible for fulfilling their terms.
Disclose the copyright
A major aspect of software usage is the type of copyright or intellectual property license that applies to it. An open-source application, for example, would allow the user to perform certain actions that would be prohibited under close-source software. Disclosing the copyright tells the end user what to expect.
Establish and define the rules of behavior
Perhaps the most important job of the EULA is to set ground rules for users to follow. Clearly state how the software should be used and what restrictions will apply.
Outline all relevant conditions and other details
The EULA must also include details on relevant conditions of software usage, such as the conditions that may result in the license being terminated or revoked.
Clearly state any disclaimers and limitations of liability
Finally, the EULA must address any disclaimers and limitations of liability that may be necessary to further protect the vendor.