Clickwrap agreement: Overview, definition and example
What is a clickwrap agreement?
A clickwrap agreement is a type of online contract where a user agrees to the terms by clicking a button or checking a box. It’s commonly used for software downloads, account sign-ups, and e-commerce purchases. The agreement typically includes a link to the terms and conditions, which the user must accept before proceeding.
Why is a clickwrap agreement important?
Clickwrap agreements are important because they provide businesses with a clear way to secure user consent to terms and conditions. For users, they set expectations about how a service can be used and what responsibilities both parties have. Legally, they can protect businesses by showing that users explicitly agreed to the terms.
However, for a clickwrap agreement to be enforceable, the terms must be clearly visible and easily accessible, and the process should make it obvious that the user is agreeing to a contract.
Understanding clickwrap agreements through an example
Imagine signing up for a video streaming service. During registration, you see a checkbox that says, “I agree to the Terms of Service and Privacy Policy,” with a clickable link to those documents. You must check the box before creating your account. This is a clickwrap agreement. By clicking, you agree to abide by the service’s rules, like paying your subscription fee or not sharing your account.
An example of a clickwrap agreement clause
“By clicking ‘I Agree,’ you acknowledge that you have read, understood, and agree to be bound by the Terms of Use and Privacy Policy provided herein.”
Conclusion
A clickwrap agreement is an effective and straightforward way for businesses to secure user consent for online services. When implemented correctly, it ensures legal clarity while providing users with an opportunity to review the terms before agreeing. This makes it a staple in digital transactions and online interactions.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.