Guidelines for Drafting Shrink Wrap and Click Wrap Agreements
What this document covers
The Guidelines for Drafting Shrink Wrap and Click Wrap Agreements is a contract template designed for use in software or computer service transactions. This form aids businesses and individual contractors in creating legally sound agreements that inform users of their rights and obligations before a purchase or download occurs. Unlike traditional contracts, shrink-wrap and click-wrap agreements are primarily presented electronically and often accepted through user actions, such as clicking a button or checking a box. This form provides detailed instructions and components necessary for drafting effective agreements that are more likely to be enforceable.
Main sections of this form
- Clear notice requirements at the time of purchase.
- Visibility of terms and conditions prominently displayed to users.
- Guidelines for disclosing license terms before use.
- Refund options for users who reject terms.
- Defined user actions for accepting the agreement.
- Highlighting uncommon terms that may surprise users.
Situations where this form applies
This form is useful when drafting agreements for software purchases or digital services where users must accept terms electronically. It provides a clear framework for communicating essential contract details to users during the transaction process. Use this form when establishing agreements that engage non-lawyers, ensuring they can easily understand and accept the terms of use before proceeding.
Who should use this form
- Businesses developing software or providing computer services.
- Individual contractors or freelancers who offer digital products.
- Legal professionals drafting agreements for clients in the tech industry.
- Anyone creating digital licensing agreements for consumer use.
Completing this form step by step
- Identify the parties involved in the agreement.
- Clearly outline the terms and conditions of the software or service being provided.
- Provide a refund and cancellation policy for users unwilling to accept the terms.
- Specify the method of acceptance required from users during the transaction.
- Ensure any uncommon terms are highlighted to avoid potential disputes.
Does this form need to be notarized?
This form usually doesn’t need to be notarized. However, local laws or specific transactions may require it. Our online notarization service, powered by Notarize, lets you complete it remotely through a secure video session, available 24/7.
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If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Common mistakes to avoid
- Failing to provide clear notice of the agreement's existence upfront.
- Using complex language that confuses non-lawyers.
- Not offering a refund policy or clear cancellation process.
- Overlooking the need for conspicuous acceptance mechanisms.
- Neglecting to highlight unusual terms that may surprise users.
Advantages of online completion
- Convenience of immediate access to layout and formatting standards.
- Editability allows for customization to specific business needs.
- Reliability of using attorney-drafted materials tailored for accuracy.
- Ease of distribution in digital transactions, enhancing user experience.
Legal use & context
Shrink-wrap and click-wrap agreements are generally enforceable if drafted correctly. However, clarity in communication and user acceptance plays a crucial role in their validity. This form offers guidance on creating enforceable agreements and addressing potential legal pitfalls.
Main things to remember
- Clear communication is essential for enforceable shrink-wrap and click-wrap agreements.
- Providing refunds and easy cancellation options protect user rights.
- Highlight unusual terms to prevent misunderstandings.
- Ensure the agreement is accessible and easily understood by all users.
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FAQ
Get it in writing. Keep it simple. Deal with the right person. Identify each party correctly. Spell out all of the details. Specify payment obligations. Agree on circumstances that terminate the contract. Agree on a way to resolve disputes.
In contract law unequal bargaining power (contracts of adhesion) is frowned upon. However, even with the lack of bargaining power eCommerce TOS are typically enforceable if they clearly list the requirements for use of the site, and avoid demanding the user to give up too much in order to use the site.
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
A form of agreement used for software licensing, websites, and other electronic media.It requires the user to agree to terms and conditions before using a website or completing an installation or online purchase process.
Be conspicuous. Present agreements in simple, easy-to-understand language. Provide ample opportunity to read the agreements. Make it clear that acceptance is mandatory. Do not use pre-tick checkboxes.
A Shrink Wrap agreement can be defined as a legal agreement that is packaged within a product. In this type of agreement, products are sealed or enclosed in shrink wrap (plastic wrap) implying that the goods (and thus the legal document) can only be viewed by the customer who purchases it.
To summarize, the main difference to be aware of between browsewrap and clickwrap is that browsewrap doesn't require a user to do anything but visit the website for the site to assume consent to terms, whereas clickwrap requires the user to do something to show consent.
