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This is the second part of our two part series on clickwrap agreements. Our first post (Should you worry about Clickwrap?) explored concerns around clickwrap agreements, as well as potential difficulties around their implementation and successful integration into contracting workflows. This post will discuss how clickwrap can benefit your organization, your end customer, or partners.
Before we get into some of the direct benefits of clickwrap, it is important to address the legal enforceability of these types of agreements.
It is difficult for some legal professionals to wrap their minds around the enforceability of clickwrap. This is often because accepting Terms of Service or other online agreements that benefit from clickwrap requires only a single click. Part of the comfort that e-signatures provide is the familiarity of a physical "signature," though it is digitally rendered. The act of "signing" the contract offers an inflated sense of protection and enforceability, when in reality, both e-signatures and clickwrap agreements are equally acceptable forms of contracting.
Thanks to guidelines provided by legislation and modern case law, clickwrap agreements are enforceable in court when structured in accordance with known best practices. Here are a few high level benefits to adopting clickwrap agreements as part of your contracting workflow.
One of the major differentiators between clickwrap and any other type of contracting is the automatic record generation that occurs as part of the acceptance process. As long as your clickwrap is correctly structured, as soon as your customer clicks “Accept,” you have an acceptance record that shows their affirmative assent to the terms you have outlined.
With only one click, you have one receipt that shows the acceptance, the terms that were agreed to, and any additional analytics you have in place (location, web browser, IP address, etc.). This type of contracting also facilitates a much easier, digitally-based process for retrieving records of acceptance in the future, storing them not only as files, but as data. Rather than relying on the recreation of an acceptance event, the best clickwrap solutions offer a searchable database of records. That way, you can produce a receipt created at the actual time of acceptance, rather than attempt to prove you accurately recreated the circumstances.
One more time for the salespeople in the back! The contracting process is often drawn out and can sometimes lead to deals dying on the vine. Clickwrap enables diverse delivery and signing options, so you can meet your customer wherever they are, whenever they are ready to sign. Clickwrap is meant to make high volume, repeatable agreements take as little time as possible.
Capitalize on customer momentum by providing a simple checkout process on your digital platform, or easily renew membership agreements with a single click. Clickwrap agreements are built to give time back to your team to focus on larger, more heavily negotiated agreements while making it easy for simple agreement to be signed quickly.
Sure, clickwrap offers plenty of benefits for your business, but it can also go a long way with your customer. We live in a digital economy, and almost all transactions of a B2C nature are expected to be easy, accessible, and digital first.
The difference between you and your competition can sometimes be boiled down to ease of implementation. Signing waivers prior to an event or experience, accepting Terms and Conditions, and agreeing to Privacy Policies with a single click allows your customer to complete their purchase quickly and efficiently.
This same expectation is becoming more and more prevalent in B2B relationships. Clickwrap for NDAs, partner on-boarding, change orders, and other types of agreements can translate this same B2C experience to your B2B relationships.
Sure, I'm biased, but one of the greatest benefits to clickwrap is that it's PactSafe's specialty. Our API-forward solution can power thousands of acceptance points with a single snippet of code that can integrate seamlessly with your existing workflows. This allows our customers to implement clickwrap into their contracting flow with minimal disruption, enabling immediate efficiency gains. Our years of industry experience, a dedicated team of legal experts, and an unmatched offering make us the trusted solution provider of companies like Doordash, Wayfair, Angie’s List, Upwork, and many more.
We have released the 2021 report of clickwrap litigation trends with more up to date best practices and case rulings from the last year. Our Clickwrap Litigation Trends: 2021 Report also analyzes the impact of the pandemic and the boon of eCommerce on the trends we see. Download your copy!