When a user clicks a box or button during installation, downloading, or purchasing something online, they enter into a legally binding contract known as Clickwrap with the business. Instead of a physical signature, the checkbox or button acts as a digital signature, verifying that the user agrees to the online contract.
The term “clickwrap” originated from “shrink wrap contracts,” which are commonly used when purchasing boxed software, implying that by tearing up the shrink wrap, the customer agrees to the software terms enclosed within.
Why do businesses use Clickwrap agreements?
Clickwrap agreements protect businesses from lawsuits by requiring users to accept digital policies and agreements, ensuring that they are aware of the terms and conditions.
Can Clickwrap agreements be challenged in court?
Yes, Clickwrap agreements can be challenged in court if they contain illegal or overly broad terms, are unclear, or if users were not fully informed of the terms before agreeing.
Are Clickwrap agreements legally binding?
Yes, Clickwrap agreements are legally binding as long as they are adequately presented and the user has explicitly consented to the terms.
Clickwrap agreements are an essential aspect of online business transactions, helping businesses to protect themselves and users to understand the terms of service. They serve as a digital signature and are legally binding as long as they are presented clearly and users agree to them explicitly.