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Generally speaking, an EULA is a legally binding agreement between the owner of a product (often software) and the end-user more specifically a contract between the licensor of a product and the licensee.
The shrink-wrap license agreement purports to create a binding legal agreement (so it says) between the software vendor and the user. The agreement is usually found inside the box containing the software, printed on the envelope containing the CD-ROM or disks, or stated in the user manual.
Is clickwrap legally enforceable? Yes, clickwrap agreements (provided they are designed, presented, and tracked in compliance with best practices) are just as enforceable as both traditional wet ink signatures and electronic signatures in the US.
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.
Online contracts can be of three types mainly i.e. shrink-wrap agreements, click or web-wrap agreements and browse-wrap agreements.
Related Content. A website agreement (typically the website's terms of use or service) that aims to bind the user by virtue of the user browsing the website. Unlike a clickwrap agreement, browsewrap agreements do not require a user take action to affirm consent to be bound.
A shrink wrap license is an end user agreement (EULA) that is enclosed with software in plastic-wrapped packaging. Once the end user opens the packaging, the EULA is considered to be in effect. There are some concerns about the legality of an agreement that the user cannot examine prior to purchase.
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.
Clickwrap requires users to provide affirmative assent to an agreement by clicking a button or checking a box. Browsewrap doesn't require signers to do anything. In short, browsewrap doesn't require affirmative assent and instead relies on assumed or implied consent.
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