What is a clickwrap agreement license?
As products and services became available in digital form or on the internet it created a dilemma with traditional terms of use agreements. The clickwrap agreement emerged as a popular method to finalize terms of purchase, service or product use.
You'll also notice that anytime you want to download or install software or use most other kinds of electronic media this is a requirement before the product or use can be activated. This agreement specifies to the user what they can or cannot do as a part of the terms of sale or usage.
If you read the terms all the way through you've probably noticed the majority of the agreement will be in favor of the vendor or online entity offering the terms. This is mostly done by companies to protect intellectual property and to safeguard themselves against illegal or wrongful use by the purchaser/user.
When users select "I agree", the consumer or user consents to abide by the company's terms. If they don't, they won't be able to continue with the transaction or sign-up until they give consent to the contractual terms of the agreement. Essentially, the clickwrap is a way companies protect themselves and shift responsibility to users.
It's always a good idea to take the time to go through any terms you may be offered and not be so hasty to select "I agree". Perhaps someday companies will realize the problems associated with lengthy and complicated contracts and make strides to simplify the wording into layman's terms, but the law is complicated and businesses have to cover all angles. It's often a catch-22.
The good news is once you get the hang of reading the contractual terms, some legal terminology and understand the basic framework of how click wrap agreements are structured, they become a little easier to understand and many consumers/users have gotten used to them.
Over time clickwrap agreements have been called into question, but a court will often find them enforceable. Thus, it is always in your best interest to make an effort to read the terms before ever clicking "I agree". Mobile has complicated the matter due to small screens and now "scrollwrap" agreements have emerged. There is likely to be continuous change as technology progresses if recent court decisions are any indicator.
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| Image credit: Pixabay |
Why was the clickwrap needed?
Due to the absence of physical paper contracts that contain signatures indicating the acceptance of terms, the clickwrap became an alternative way to finalize a sale with a simple click of the mouse button. According to statistics, global online sales reached a whopping $1.9 trillion (US dollars) in 2016 and projections estimate this will grow to $4.06 trillion by 2020. With the rapid growth of e-commerce, the clickwrap agreement was created as an electronic solution to resolve contractual controversies that may arise in a transaction.Who uses clickwraps?
If you use any software or spend any amount of time online (and realistically, who doesn't these days?), you've most likely been exposed to numerous clickwrap agreements. Before you can access most digital products, services or even to obtain a membership to use most websites you'll be presented with a clickwrap agreement.You'll also notice that anytime you want to download or install software or use most other kinds of electronic media this is a requirement before the product or use can be activated. This agreement specifies to the user what they can or cannot do as a part of the terms of sale or usage.
How do clickwraps work?
The way clickwraps work is after you read the terms of use, service or sale, at the end of the terms you are presented with the choice "I agree" or "I don't agree". This primarily comes in the form of a pop-up box or a check-box depending on the design of the agreement.If you read the terms all the way through you've probably noticed the majority of the agreement will be in favor of the vendor or online entity offering the terms. This is mostly done by companies to protect intellectual property and to safeguard themselves against illegal or wrongful use by the purchaser/user.
When users select "I agree", the consumer or user consents to abide by the company's terms. If they don't, they won't be able to continue with the transaction or sign-up until they give consent to the contractual terms of the agreement. Essentially, the clickwrap is a way companies protect themselves and shift responsibility to users.
Drawbacks of clickwraps
Clickwrap agreements seem to be a good alternative to the absence of paper contracts in today's digital environment. One problem that has arisen with clickwrap agreements is that companies typically put too much "legalese" in their terms of use or service and as a result users and consumers have become immune to them. As a result, people quickly select "I agree" so they can continue their transaction. Unfortunately, it isn't until after the fact people sometimes realize they don't agree with the terms and are not happy with their transaction, but are bound to the terms because they agreed.It's always a good idea to take the time to go through any terms you may be offered and not be so hasty to select "I agree". Perhaps someday companies will realize the problems associated with lengthy and complicated contracts and make strides to simplify the wording into layman's terms, but the law is complicated and businesses have to cover all angles. It's often a catch-22.
The good news is once you get the hang of reading the contractual terms, some legal terminology and understand the basic framework of how click wrap agreements are structured, they become a little easier to understand and many consumers/users have gotten used to them.
Over time clickwrap agreements have been called into question, but a court will often find them enforceable. Thus, it is always in your best interest to make an effort to read the terms before ever clicking "I agree". Mobile has complicated the matter due to small screens and now "scrollwrap" agreements have emerged. There is likely to be continuous change as technology progresses if recent court decisions are any indicator.
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