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Shrink wrap contracts are boilerplate contracts packaged with products; usage of the product is deemed acceptance of the contract. Web-wrap, click-wrap and browse-wrap are related terms which refer to license agreements in software which is downloaded or used over the internet.
In the defining statement of the opinion, the court held that, "shrink-wrap licenses are enforceable unless their terms are objectionable on grounds applicable to contracts in general." The court concluded that no contract was formed by the parties until the buyer "accepted" the seller's terms by electing to keep the
Shrink wrap, clickwrap and browsewrap are common types of contracts used in electronic commerce.
End User License Agreements are enforceable as long as it is clear that it is a contract and both parties can understand the terms. Unlike a basic software license that sets user parameters for a finite engagement, the EULA gives the end-user conditions to use the software or hardware continually.
In the defining statement of the opinion, the court held that, "shrink-wrap licenses are enforceable unless their terms are objectionable on grounds applicable to contracts in general." The court concluded that no contract was formed by the parties until the buyer "accepted" the seller's terms by electing to keep the
A Shrink Wrap agreement can be defined as a legal agreement that is packaged within a product. In this type of agreement, products are sealed or enclosed in shrink wrap (plastic wrap) implying that the goods (and thus the legal document) can only be viewed by the customer who purchases it.
A browsewrap is a link at the bottom of the screen with notice that using the site indicates acceptance of Terms. Browsewrap agreements are not very enforceable in court.
Shrink-wrap agreements have not always been enforced. The most important consideration is the time at which the manufacturer communicates the terms to the end-user. A court is likely to enforce such an agree¬ment if a buyer has an opportunity to read the agreement before using the product.
Difference between click-wrap and shrink-wrap agreement In a shrink-wrap agreement, the contract terms are not read until the buyer un-wraps the software; but in click-wrap agreement the consumer knows the contractual terms before he/she commits herself to buy goods or services.