diff --git a/app/Models/Asset.php b/app/Models/Asset.php
index dd2f1c8e2..aff06b668 100644
--- a/app/Models/Asset.php
+++ b/app/Models/Asset.php
@@ -950,11 +950,12 @@ class Asset extends Depreciable
     {
 
         if (($this->model) && ($this->model->category)) {
-            if ($this->model->category->eula_text) {
+            if (($this->model->category->eula_text) && ($this->model->category->use_default_eula === 0)) {
                 return Helper::parseEscapedMarkedown($this->model->category->eula_text);
-            } elseif ($this->model->category->use_default_eula == '1') {
+            } elseif ($this->model->category->use_default_eula === 1) {
                 return Helper::parseEscapedMarkedown(Setting::getSettings()->default_eula_text);
             } else {
+
                 return false;
             }
         }
diff --git a/tests/Support/Settings.php b/tests/Support/Settings.php
index 2d499838c..e171c0ab9 100644
--- a/tests/Support/Settings.php
+++ b/tests/Support/Settings.php
@@ -121,6 +121,10 @@ class Settings
             'ldap_basedn' => 'CN=Users,DC=ad,DC=example,Dc=com'
         ]);
     }
+    public function setEula($text = 'Default EULA text')
+    {
+        return $this->update(['default_eula_text' => $text]);
+    }
 
     /**
      * @param array $attributes Attributes to modify in the application's settings.
diff --git a/tests/Unit/NotificationTest.php b/tests/Unit/NotificationTest.php
index 8005759a1..86177c303 100644
--- a/tests/Unit/NotificationTest.php
+++ b/tests/Unit/NotificationTest.php
@@ -33,4 +33,28 @@ class NotificationTest extends TestCase
         $asset->checkOut($user, $admin->id);
         Notification::assertSentTo($user, CheckoutAssetNotification::class);
     }
+    public function testDefaultEulaIsSentWhenSetInCategory()
+    {
+        Notification::fake();
+
+        $this->settings->setEula('My Custom EULA Text');
+
+        $user = User::factory()->create();
+
+        $category = Category::factory()->create([
+            'use_default_eula' => 1,
+            'eula_text' => 'EULA Text that should not be used',
+        ]);
+
+        $model = AssetModel::factory()->for($category)->create();
+        $asset = Asset::factory()->for($model, 'model')->create();
+
+        $asset->checkOut($user, User::factory()->superuser()->create()->id);
+
+        Notification::assertSentTo($user, CheckoutAssetNotification::class, function ($notification) {
+            $content = $notification->toMail()->render();
+
+            return str_contains($content, 'My Custom EULA Text') && !str_contains($content, 'EULA Text that should not be used');
+        });
+    }
 }