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A clickwrap agreement, also known as a click through, shrink-wrap, or sign-in-wrap, is an online agreement in which the user signifies his or her acceptance by clicking a button or checking a box that states ?I agree.? The purpose of a clickwrap agreement is to digitally capture acceptance of a contract.
In the legal world, a click wrap agreement is more legally binding than a shrink wrap agreement. This is because a click wrap agreement requires the user to affirmatively agree to the terms and conditions of the agreement, while a shrink wrap agreement typically requires no action on the part of the user.
Clickwrap agreements are a type of electronic signature that involves a user clicking a simple button to accept the agreement. This allows organizations to gain legal consent in seconds, making for an easier and faster user experience.
Unlike the shrink wrap agreements where the terms of the agreement are hidden inside the box, in case of click wrap agreements, all the terms and conditions are accessible prior to acceptance, either in the same window or through a hyperlink.
Shrinkwrap contracts or shrinkwrap licenses are boilerplate contracts packaged with products; use 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.
A common click wrap agreement example is software licensing. In this case, a user must agree to the terms and conditions before downloading software. Other examples include registering a social media account, NDA agreements, cookie policies, data processing agreements, and Statements of Work (SOWs).
The user agrees to the license when they tear open the plastic wrap or the software. Most courts have found these agreements to be enforceable unless their terms are unconscionable or violate a generally accepted principle of contract law.
An example of browsewrap where the terms are clickable: "By browsing this website, you acknowledge and agree that your access to information on these pages constitutes acceptance." This paragraph has links for various items such as "Privacy Policy" or "Terms".