diff --git a/src/app/server/DefaultTermsAndConditionsProvider.h b/src/app/server/DefaultTermsAndConditionsProvider.h
index 3b4a8f6f7d008e..bbe22f8aac8af3 100644
--- a/src/app/server/DefaultTermsAndConditionsProvider.h
+++ b/src/app/server/DefaultTermsAndConditionsProvider.h
@@ -36,9 +36,9 @@ class TermsAndConditionsStorageDelegate
 
     virtual CHIP_ERROR Delete() = 0;
 
-    virtual CHIP_ERROR Get(Optional<TermsAndConditions> & inTermsAndConditions) = 0;
+    virtual CHIP_ERROR Get(Optional<TermsAndConditions> & outTermsAndConditions) = 0;
 
-    virtual CHIP_ERROR Set(const Optional<TermsAndConditions> & outTermsAndConditions) = 0;
+    virtual CHIP_ERROR Set(const Optional<TermsAndConditions> & inTermsAndConditions) = 0;
 };
 
 class DefaultTermsAndConditionsStorageDelegate : public TermsAndConditionsStorageDelegate
diff --git a/src/app/tests/TestDefaultTermsAndConditionsProvider.cpp b/src/app/tests/TestDefaultTermsAndConditionsProvider.cpp
index 8b1170868ca8a3..a125a50f77f212 100644
--- a/src/app/tests/TestDefaultTermsAndConditionsProvider.cpp
+++ b/src/app/tests/TestDefaultTermsAndConditionsProvider.cpp
@@ -18,12 +18,39 @@
 
 #include "app/server/DefaultTermsAndConditionsProvider.h"
 #include "app/server/TermsAndConditionsProvider.h"
+#include "pw_unit_test/framework.h"
 
 #include <lib/core/CHIPError.h>
 #include <lib/core/StringBuilderAdapters.h>
 #include <lib/support/TestPersistentStorageDelegate.h>
 #include <pw_unit_test/framework.h>
 
+class TestTermsAndConditionsStorageDelegate : public chip::app::TermsAndConditionsStorageDelegate
+{
+public:
+    TestTermsAndConditionsStorageDelegate(chip::Optional<chip::app::TermsAndConditions> &initialTermsAndConditions)
+    : mTermsAndConditions(initialTermsAndConditions) {
+    }
+
+    CHIP_ERROR Delete() {
+        mTermsAndConditions.ClearValue();
+        return CHIP_NO_ERROR;
+    }
+
+    CHIP_ERROR Get(chip::Optional<chip::app::TermsAndConditions> & outTermsAndConditions) {
+        outTermsAndConditions = mTermsAndConditions;
+        return CHIP_NO_ERROR;
+    }
+
+    CHIP_ERROR Set(const chip::Optional<chip::app::TermsAndConditions> & inTermsAndConditions) {
+        mTermsAndConditions = inTermsAndConditions;
+        return CHIP_NO_ERROR;
+    }
+
+private:
+    chip::Optional<chip::app::TermsAndConditions> &mTermsAndConditions;
+};
+
 TEST(DefaultTermsAndConditionsProvider, TestInitSuccess)
 {
     CHIP_ERROR err;
@@ -389,26 +416,26 @@ TEST(DefaultTermsAndConditionsProvider, TestRevertAcceptenceWhileMissing)
     EXPECT_FALSE(outTermsAndConditions.HasValue());
 }
 
-TEST(DefaultTermsAndConditionsProvider, TestRevertAcceptenceWhileAccepted)
+TEST(DefaultTermsAndConditionsProvider, TestRevertAcceptenceWhenPreviouslyAccepted)
 {
     CHIP_ERROR err;
-
-    chip::TestPersistentStorageDelegate testPersistentStorageDelegate;
-    chip::app::DefaultTermsAndConditionsStorageDelegate defaultTermsAndConditionsStorageDelegate;
+    
     chip::app::DefaultTermsAndConditionsProvider defaultTermsAndConditionsProvider;
 
-    chip::Optional<chip::app::TermsAndConditions> requiredTermsAndConditions = chip::Optional<chip::app::TermsAndConditions>({
+    chip::Optional<chip::app::TermsAndConditions> initialTermsAndConditions = chip::Optional<chip::app::TermsAndConditions>({
         .value   = 1,
         .version = 1,
     });
 
-    chip::Optional<chip::app::TermsAndConditions> outTermsAndConditions;
+    chip::Optional<chip::app::TermsAndConditions> requiredTermsAndConditions = chip::Optional<chip::app::TermsAndConditions>({
+        .value   = 0b11,
+        .version = 2,
+    });
 
-    err = defaultTermsAndConditionsStorageDelegate.Init(&testPersistentStorageDelegate);
-    EXPECT_EQ(CHIP_NO_ERROR, err);
+    TestTermsAndConditionsStorageDelegate testTermsAndConditionsStorageDelegate(initialTermsAndConditions);
 
     // Initialize unit under test [Conditions previously accepted]
-    err = defaultTermsAndConditionsProvider.Init(&defaultTermsAndConditionsStorageDelegate, requiredTermsAndConditions);
+    err = defaultTermsAndConditionsProvider.Init(&testTermsAndConditionsStorageDelegate, requiredTermsAndConditions);
     EXPECT_EQ(CHIP_NO_ERROR, err);
 
     // [Fail-safe started] No conditions set during the fail-safe. No commit.
@@ -417,8 +444,55 @@ TEST(DefaultTermsAndConditionsProvider, TestRevertAcceptenceWhileAccepted)
     err = defaultTermsAndConditionsProvider.RevertAcceptance();
     EXPECT_EQ(CHIP_NO_ERROR, err);
 
+    chip::Optional<chip::app::TermsAndConditions> outTermsAndConditions;
+
     // [New fail safe started (to retry the commissioning operations)] Confirm acceptance returns previous values (accepted)
     err = defaultTermsAndConditionsProvider.GetAcceptance(outTermsAndConditions);
     EXPECT_EQ(CHIP_NO_ERROR, err);
-    EXPECT_FALSE(outTermsAndConditions.HasValue());
+    EXPECT_TRUE(outTermsAndConditions.HasValue());
+    EXPECT_EQ(outTermsAndConditions.Value().value, 1);
+    EXPECT_EQ(outTermsAndConditions.Value().version, 1);
 }
+
+TEST(DefaultTermsAndConditionsProvider, TestRevertAcceptenceWhenPreviouslyAcceptedThenUpdatedUnderFailsafe)
+{
+    CHIP_ERROR err;
+    
+    chip::app::DefaultTermsAndConditionsProvider defaultTermsAndConditionsProvider;
+
+    // Initialize unit under test dependency
+    chip::Optional<chip::app::TermsAndConditions> initiallyAcceptedTermsAndConditions = chip::Optional<chip::app::TermsAndConditions>({
+        .value   = 1,
+        .version = 1,
+    });
+    TestTermsAndConditionsStorageDelegate testTermsAndConditionsStorageDelegate(initiallyAcceptedTermsAndConditions);
+
+    // Initialize unit under test [Conditions previously accepted]
+    chip::Optional<chip::app::TermsAndConditions> requiredTermsAndConditions = chip::Optional<chip::app::TermsAndConditions>({
+        .value   = 0b11,
+        .version = 2,
+    });
+    err = defaultTermsAndConditionsProvider.Init(&testTermsAndConditionsStorageDelegate, requiredTermsAndConditions);
+    EXPECT_EQ(CHIP_NO_ERROR, err);
+
+    // [Fail-safe started] Acceptance updated.
+    chip::Optional<chip::app::TermsAndConditions> updatedAcceptedTermsAndConditions = chip::Optional<chip::app::TermsAndConditions>({
+        .value   = 0b111,
+        .version = 3,
+    });
+    err = defaultTermsAndConditionsProvider.SetAcceptance(updatedAcceptedTermsAndConditions);
+    EXPECT_EQ(CHIP_NO_ERROR, err);
+
+    // [Fail-safe expires] Revert is called.
+    err = defaultTermsAndConditionsProvider.RevertAcceptance();
+    EXPECT_EQ(CHIP_NO_ERROR, err);
+
+    chip::Optional<chip::app::TermsAndConditions> outTermsAndConditions;
+
+    // [New fail safe started (to retry the commissioning operations)] Confirm acceptance returns previous values (accepted)
+    err = defaultTermsAndConditionsProvider.GetAcceptance(outTermsAndConditions);
+    EXPECT_EQ(CHIP_NO_ERROR, err);
+    EXPECT_TRUE(outTermsAndConditions.HasValue());
+    EXPECT_EQ(outTermsAndConditions.Value().value, initiallyAcceptedTermsAndConditions.Value().value);
+    EXPECT_EQ(outTermsAndConditions.Value().version, initiallyAcceptedTermsAndConditions.Value().version);
+}
\ No newline at end of file