Wondering if your clickwrap agreements will hold up in court?

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The simple answer is yes, but understanding legal precedent and how to design agreements for enforceability is key.

Since the 1990’s US courts have supported the enforceability of clickwrap (also known as click through or browsewrap) agreements. In fact, in the United States, there are a number of laws that support the enforceability of clickwrap agreements to the same extent as electronic signatures or pen and ink signatures.

  • The Electronic Signatures in Global and National Commerce Act (“ESIGN”) Act
  • The Uniform Electronic Transactions Act (“UETA”) 
  • Additionally 47 states have adopted some form of the UETA with New York, Illinois and Washington adopting their own statutes for electronic signatures. 

 

What’s the difference between a clickwrap agreement and an esignature? 

While there is a functional distinction between an esignature acceptance vs. a clickwrap acceptance they are both considered legally binding forms of acceptance. UETA defines an “electronic signature” as “an electronic sound, symbol or process that is attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.” 

  • Examples of electronic signature types covered under US law include:
  • Clearly displayed “I agree” buttons or checkboxes
  • Typed or mouse drawn names

While it’s widely accepted for users to check a box to “sign” a contract, that alone isn’t necessarily enough to protect your business in court.  Follow these clickwrap best practices when designing your online agreement workflows for best results.

 

Strengthening the enforceability of clickwrap agreements

While it’s widely accepted for users to check a box to “sign” a contract, that alone isn’t necessarily enough to protect your business in court.  Follow these clickwrap best practices when designing your online agreement workflows for best results.

 


 

PactSafe's Signature Acceleration Platform has been designed with compliance of these laws in mind.

 

Here are some of the things we do to make sure electronic signatures are legally binding:

Maintain records of acceptance

Records of signer acceptance include the contract itself, proof of authentication measures, a basic signer digital thumbprint, and a time-stamped audit trail of all activity related to a contract and its signers. As soon as a contract is electronically signed using PactSafe, we create a durable, electronic record of the process by which this electronic signature was created.  

Multiple Signer Authentication Options

You should always know, and be able to prove, who is signing your contracts. PactSafe’s signer authentication methods include email, secure links, unique signer codes, and multi-factor authentication (e.g. codes sent via SMS). This is a vital step in asserting the validity of your agreements.

Accessible and Secure Records

All information transferred to and from PactSafe is 256-bit SSL encrypted, including usernames and passwords. Our electronic signature platform is designed to keep data secure and prevent tampering of your contracts, electronic signatures, and electronic records. Additionally, your static files and electronic signature information is encrypted in Amazon's S3 servers, which are housed in an ISO 27001 certified data center.

Version Control

We create a unique record of every contract before any party electronically signs it, and of each revision. Another unique record of the contract is created each time a user signs a new version.

 

Interested in learning more about PactSafe?

 

Request a Demo

 


 

Related Content:

What is a Clickwrap Agreement?

5 components of an enforceable clickwrap agreement

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