With advancing technology in recent decades, many business transactions are carried out online with the click of a button. This approach has the advantage of ensuring that transactions progress almost seamlessly. The downside is that parties to agreements may bypass closely examining their rights before signing an agreement.
You’ve probably experienced both clickwrap and browsewrap agreements before, but may not have delved into the details of these digital contracts. Outlined below is a brief definition of each term as well as key similarities and differences between them.
What is a clickwrap?
Clickwraps, also known as click-to-sign agreements, can be utilized for almost any form of business contract. They carry out similar functions to a traditional contract, only the process is completed much more quickly. An example of a clickwrap agreement would be a popup box that appears when you download digital software and are asked to consent to the owner’s privacy policies. By clicking the box and continuing, you are essentially doing the same thing as signing a written contract, only the process is almost instant.
What is a browsewrap?
Browsewraps are a form of digital contract, and are most frequently utilized for terms of agreements on websites. However, they are distinct from clickwraps as they automatically assume consent simply by someone’s visit to – or use of the services on – the site.
Are these agreements enforceable?
Offer, acceptance, awareness and consideration are all fundamental components of contracts, even those in the digital realm. A clickwrap typically provides some details of the agreement and requires you to pause before clicking and offering your consent. A browsewrap doesn’t do this. Thus, browsewraps can be much more difficult to legally enforce. This is because it is difficult to assert that the user has been clearly presented with details of the terms, let alone consented to them.
In any business transaction, especially those in the digital realm, it is crucial to carry out due diligence and fully comprehend your rights. We help businesses who are asserting contractual rights or defending themselves from breach of contract claims.