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ARTICLE · 14 JULY 2016

A Binding "Clickwrap Agreement" From Paper?

Consumers and businesses routinely enter into binding contracts by means of both paper agreements and online "click-through" agreements.

CanadaCorporate/Commercial Law

Consumers and businesses routinely enter into binding contracts by means of both paper agreements and online "click-through" agreements. But what happens when you face a "hybrid" contract? Can a binding contract be formed merely with a link to another set of terms?

The answer is clear... it depends. Consider the American case of Holdbrook Pediatric Dental, LLC, v. Pro Computer Service, LLC (PCS). This decision considered the enforceability of a set of terms which were "linked" from a paper hard-copy version of the contract.

In Holdbrook Pediatric, PCS sent a contract to its customer electronically. The customer printed out the paper version, signed it in hard copy and sent it back. Near the signature line, a hyperlink appeared pointing to a separate set of Terms and Conditions in HTML code. Of course, on the paper copy these terms could not be hyperlinked. It was simply a static line typed out on the paper copy that appeared like this:

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