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Adhesion contracts are enforceable?when they are done correctly. Due to the unequal bargaining power associated with a form contract, the agreement must meet certain criteria to remain enforceable. Courts will scrutinize adhesion contracts closely to determine if they are unconscionable or unfair.
Explanation: The statement is true. Terms in a shrink-wrap agreement have been enforced in the same way as the terms of other contracts. A shrink-wrap agreement is a contract that is included inside or with a product and is only visible after removing the plastic shrink-wrap or opening the product's packaging.
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.
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.
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.
Unenforceable contract examples include void contracts, unconscionable contracts, contracts against public policy, and impossible contracts. It is important that all contracts have the necessary elements in order for them to be upheld in a court of law.