1 Click Contracts

One Click Contract: End-User License Agreement (EULA)

1 Click- EULA-16

Each week, PactSafe will discuss and post about specific standardized agreements and how they can be turned into one-click contracts. Last week, we covered COVID-19 Liability Waiver. This week, we're focusing on the End-User License Agreements (EULA): what it is, why its typical signing method isn't ideal, and how it can be turned into a one click contract on the PactSafe platform.

What Is A One Click Contract? 

A one click contract is like any other contract, but it’s presented in a way that allows the person signing it to do so by simply clicking on it. With very few exceptions, any contract can be signed with a single click on a website, from a phone, in an email — anywhere you meet your customers digitally, you can deliver a 1-click contract.

Related: One Click Contract: Stock Option Grant

What is a EULA?

End-User License Agreement (EULA) refers to a legal contract between a software application author or publisher and the user of that application. The user agrees to pay for the privilege of using the software, and promises the software author or publisher to comply with all restrictions stated in the EULA.

Who signs it?

They are typically agreed to by a customer, site user, app user, etc.

How is it typically signed?

They are typically “agreed” to in either a shrink-wrap manner (applies to physical software), or a clickwrap agreement or a browsewrap (more common approach these days for online software).

Related: One Click Contract: Offer Letter

Why is this signing method not ideal?

As software today is distributed and readily available at the click of a button, shrink-wrap agreements are also declining. In addition, there isn't really a great way of tracking the agreement of a shrink-wrap. While clickwrap agreements are generally enforceable , browsewrap agreements generally aren't, as the user isn’t required to take any sort of action to agree to the terms.

How to turn End-User License Agreement (EULA) into a 1-click Contract

How does a EULA work as a 1-click contract?

EULAs are standardized for a greater acceptance rate and high-velocity contracting, so it's a no-brainer that they are the perfect candidate for a 1-click acceptance.

Related: One Click Contract: Terms of Service

Why does a EULA work better as a 1-click contract?

As a one click contract, it captures precise acceptance that a specific signer has agreed to the EULA. This allows for more enforceability.

Is a 1-click contract legally binding?

1-click contracts are absolutely binding. Also known as “clickwraps,” courts have enforced millions of contracts accepted by a single click. PactSafe’s platform was built to help ensure 1-click contracts are created in compliance with all the best practices established in 1000’s of court cases over the past 20+ years.

Learn more about PactSafe's contactless contract and policy kit.

Contactless Contract and Policy Kit

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