Sooner or later, you will be sued. Because it is inevitable, the question of "when" is less important than whether or not you are prepared for your terms to be enforced. Are you certain that your online legal agreements--clickwrap, sign-in-wrap, and browsewrap--can hold up in court? In our 3-post series, we will detail the three common types of online agreements, case law examples, and the factors that influence their enforceability in court. Our first post is dedicated to clickwrap agreements.
Increasingly, B2B and B2C companies are moving their businesses online in order to take advantage of the speed, convenience, and popularity of the internet. And as contracts govern the relationship between the website owner and the user, the contracts also need to be hosted and accepted online. As a result, these companies often utilize clickthrough agreements to capture user acceptance of the contract terms. However, clickthrough litigation has increased 626% since 2002. As the volume of clickthrough-related cases increases, the more important it becomes for businesses to know more about the types of online agreements, how they are formed, and what gives you the best chance of defending them in court.
We constantly sing the praises of clickthrough (clickwrap) agreements for their ease of use and enforceability, but not all agreements are created equal. There are some best practices you need to use to create truly enforceable clickwrap agreements—here they are boiled down to five key considerations.