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As an eCommerce business, you will use many different agreements in the course of your business activities, such as user agreements. These contracts are crucial for your online brand as they secure transactions between you and other businesses and your online customers. Correctly drafted terms are legally enforceable and can protect your business from legal disputes. As an online business, these agreements are likely to be online, meaning your website users will use electronic means of agreement. An effective way to do this is through a clickwrap agreement. This article will explain what your eCommerce business needs about clickwrap agreements.
What is a Clickwrap Agreement?
A clickwrap agreement or clickwrap licence is a type of online agreement that may be used by:
- websites, such as yours;
- software licensing businesses; and
- other electronic media.
A clickwrap agreement ensures that an online user agrees to something before they can go ahead and use it or purchase it. This is relevant for online transactions and applications. The agreement, therefore, acts as the online users consent to agree to, for example:
- correctly using a website;
- installing an application; or
- completing an online purchase.
When agreeing to a clickwrap agreement, a website user usually signs it by clicking on a box marked ‘I agree’ or ‘I accept’ the terms and conditions they are presented with.
When Might I Need a Clickwrap Agreement?
As an eCommerce business, you may need a clickwrap agreement if you offer any of the following activites:
- software download or installation;
- airline ticket sales;
- checkout for online purchases;
- online music downloads or sales;
- online resource access;
- trial registration for your product or service;
- online account sign-ups; or
- use of your website.
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What Criteria Does a Clickwrap Agreement Have to Meet?
When you use clickwrap agreements as an eCommerce business, you should understand they are like other forms of contracts. This means there are still specific criteria they need to meet to be legal agreements. For instance, your clickwrap agreement must follow the usual principles of contract formation to be legally enforceable. Your eCommerce solicitor can help you with this.
It is also essential to ensure that your eCommerce clickwrap agreements are well-presented. This ensures that it is easy for your online users to understand what they are being asked to consent to. This includes details such as font, format and capitalisation. A court could consider all of these factors if they need to examine the enforceability of your clickwrap agreement.
What Are the Benefits of Clickwrap Agreements?
Clickwrap agreements are beneficial for eCommerce businesses like yours. Firstly, clickwrap agreements are simple for your eCommerce business and online customers to use. Also, they are an excellent way to check which customers have accepted the terms and conditions and on which date they did this. Importantly, if you update the terms and conditions in the clickwrap agreement, you must let your customers know and request them to consent again.
Clickwrap agreements, however, may not be as beneficial for large transactions and transactions where more than a few parties need to sign.
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Key Takeaways
A clickwrap agreement or clickwrap licence is a legally binding agreement your website users can consent to online. This may be for the use of your website, for example, and secures their agreement to the terms and conditions for its use. These agreements require customers to tick a box which may say ‘I accept’. Therefore, they are simple to use contracts. You may consider using clickwrap agreements to help with key functions such as online account or trial registration. Clickwrap agreements, like other contracts, must follow the usual principles of contract formation. They must also be presented well for your customers to understand to ensure they are enforceable. In addition to being simple to use, clickwrap agreements can be a helpful way of checking who has agreed to terms and conditions and when.
If you need help understanding what your business needs to know about clickwrap agreements in the UK, LegalVision’s experienced eCommerce lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.
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