What is a clickwrap agreement?

In simple terms, clickwrap agreements are agreements formed on the Internet. A service provider may post terms and conditions and the user clicks an “I Accept” button. There are times when “I Accept” button may not be present, however the explicit act of consuming the service may be treated as implied consent to the agreement.

Clickwrap agreements are generally used for software as a service, websites content consumption, using apps on the appstore and many other types of electronic interactions. It requires the consumer to agree to the terms and conditions before consuming the services or information.

Clickwrap agreements are also frequently used for online purchase process. These agreements typically present the terms and conditions followed by a user input field that explicitly states that that the user provides their consent to the terms and conditions of the agreement..

What goes in a clickwrap agreement?

A clickwrap agreement generally contains an exhaustive set of terms and conditions that outline how and in what ways the consumer can interact with the service. These at a minimum include

  1. Standard terms for a service owner to license off-the-shelf, unmodified software for end use in its licensees’ businesses.
  2. This clickwrap agreement document also includes authorized User Terms of Use, which a user organization may wish to present to each person that uses the software on behalf of the business.
  3. The clickwrap agreement terms includes license terms that are provided by the service provider with software and not meant to be negotiated by the parties.
  4. The mechanism to indicate that consumer has granted their acceptance to the agreement by taking a specified action.

Are clickwrap agreements enforceable?

The answer is generally yes but there are notable exceptions as well. You should instead be asking the question about when they may not be enforceable.

In general, for clickwrap agreements to be enforceable, all involved parties must knowingly provide consent to all of the different aspects of the agreement. All parties also need to be aware of the existence of the terms of the agreement.

In addition, for organizational use, the individual representative may also need to confirm that he/she is authorized to contractually bind the organization by clicking on a box.

Digital or electronic signature is a key pillar of clickwrap agreements. The signature must be obtained in a way that meets all of the criteria of universal e-signature act.

What are some clickwrap agreement best practices?

  1. Provide any and every information upfront

    While the definitive answer must come from your qualified legal counsel, as a business owner it is important for you to know that anything and everything that is in scope for the contract needs to be presented to the consenting party at the time of signing ceremony. ned by the consumer.

  2. Avoid cross-linking to information

    Avoid any indirect reference to other documents, webpages or any other published material through any hyperlink. Instead insert the actual terms and condition text itself into the body of the agreement. If agreement is formed at the moment the consumer fills their information into your clickwrap agreement and have a chance to read and review the entire agreement, this will be favored by the legal professionals over an indirect hyperlink reference to any text that is outside of the active viewable area.

  3. Provide a summary alongside the text

    While this may not be the norm out there, many service providers are taking steps towards greater transparency and easier comprehension of their clickwrap agreement.

  4. Don’t leave anything for later

    If you believe that you may need users to agree to any additional terms or conditions after they have signed up for the services using clickwrap agreement, consider moving those terms to the clickwrap agreement. Besides legal ramifications, it would just leave a bad taste of bait and switch after users have signed up and provided their commitment.

  5. Don’t forget the updates

    It is important to setup a reminder for updates made to the clickwrap agreement. Ideally, you should have provisions and capability to alert and update the consumers of your services for every update made to the terms and conditions.

How does DocuCollab help you with clickwrap agreement best practices?

DocuCollab has greatly simplified the process of creating and maintaining clickwrap agreement for your business. With it’s powerful core features combined with easy to embed clickwrap capabilities, DocuCollab bridges the divide between conventional contract management and clickwrap agreement management. Some of key capabilities include

  1. One click conversion of a Word Document template to a clickwrap agreement template
  2. Self-service and embeddable clickwrap agreement HTML generator that you can embed on your web page or your e-commerce workflow
  3. Dynamic auto refresh of agreement terms and conditions language in clickwrap agreement whenever an update is made to any term in the clause library.
  4. Dynamic insertion of quotes or pricing tables based on user’s attributes
  5. Run-time questions that help you generate a different clickwrap agreement for different types of users or audience.
  6. Integrated e-signature

To see these and other steps related to clickwrap agreement management in action, book a custom demo using this link.

How long does it take to publish a clickwrap agreement using DocuCollab?

If you have your clickwrap agreement in Microsoft Word , HTML or any other web format, you can publish and embed your clickwrap agreement in as little as 10 minutes. Average DocuCollab customers are able to create and publish their library of contract templates, clauses for terms and conditions in a matter of days.