Ok guys, this is a really stupid one. To fix this error that folks seem to be getting do the following.
Content --> Languages
In the apply filter box, search for terms_and_conditions.
Step 1.
In the terms_and_conditions_newbie_note change the line to something similar to this:
I accept the <a href="http://yourstorenamehere.com/store/Return_Policy.html" onclick="javascript:popupOpen(this.href, '', {width:800,height:600}); return false;" target="_blank">"Terms & Conditions"</a>
In the above we changed it so that when a user clicks on the Terms & Conditions it opens the static page that we created as Return_Policy.html
Step 2.
In the terms_and_conditions_note change the line to something similar to this:
I accept the <a href="http://yourstorenamehere.com/store/Return_Policy.html" onclick="javascript:popupOpen(this.href, '', {width:800,height:600}); return false;" target="_blank">"Terms & Conditions"</a> and <a href="http://yourstorenamehere.com/store/Privacy_Notice.html" target="_blank" onclick="javascript:popupOpen(this.href, '', {width:800,height:600}); return false;">"Privacy statement"</a>
In the above we changed it so that when a user clicks on the Terms & Conditions it opens the static page that we created as Return_Policy.html and then when they click on the Privacy Statement it opens up the static page Privacy_Notice.html
Hope that this helps someone else. Works great for us now
