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Contract Glossary

Click-Wrap Agreement

Definition

A digital contract formed when a user clicks 'I Agree,' 'Accept,' or a similar button after being presented with terms and conditions. Unlike browse-wrap agreements (where terms are passively linked in a footer), click-wrap requires an affirmative action — the user must actively acknowledge the terms before proceeding. Courts consistently enforce click-wrap agreements because the click demonstrates clear assent.

In Practice

Every time you install software, create an account, or subscribe to a SaaS product, you encounter click-wrap agreements. The most enforceable format: display the full terms in a scrollable text box, require the user to check a box next to 'I have read and agree to the Terms of Service,' and then click a 'Create Account' button. Log the timestamp, IP address, and version of the terms accepted. Without this audit trail, proving the user agreed becomes difficult if a dispute arises.

Frequently asked questions about click-wrap agreement

Yes, courts in the US, EU, and most other jurisdictions enforce click-wrap agreements. The key factors: the terms must be reasonably visible (not hidden behind multiple links), the user must take an affirmative action to accept (click, check, tap), and the terms can't be unconscionable. The more prominently you display the terms and the clearer the acceptance mechanism, the stronger the enforceability.

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This content is for informational purposes only and does not constitute legal advice. For contracts with significant financial or legal implications, review by a qualified attorney is recommended.