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ARTICLE · 17 APRIL 2018

Are online contracts enforceable?

Article discusses online agreements, their origins, how to identify them, their legal enforceability and recommendations.

AustraliaCorporate/Commercial Law

Do you have a website or app through which you sell goods or services? We have all accepted terms and condition online in one form or another, but as a website owner have you questioned whether they are all enforceable, or is one way better than another?

The form of acceptance an agreement takes when accepted online is broadly referred to as a:

  • Clickwrap agreement
  • Sign-in wrap agreement; or
  • Browsewrap agreement.

This article will look at the origins of these agreements, how to identify each of them, their legal enforceability, and our recommendations.

Origins

These awkwardly named agreements come from the concept of a "shrinkwrap contract". This was used to refer to the sale and purchase of goods, particularly software, which were shrink-wrapped. The act of removing that shrink-wrap was purportedly an acceptance of the terms and conditions of the product contained inside. Initially, some were dubious of the legal enforceability of this arrangement,

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