Guidelines for Drafting Shrink Wrap and Click Wrap Agreements
Overview of this form
This form provides guidelines for creating shrink wrap and click wrap agreements, essential contracts for software or computer services. It outlines best practices to ensure that these agreements are clear and enforceable, addressing common legal challenges. Unlike other forms of agreements, this one focuses specifically on electronic transactions where acceptance occurs through usage or clicking, making it crucial for businesses and independent contractors involved in software distribution and services.
What’s included in this form
- Clear communication of agreement terms at the point of purchase
- Visible acceptance notices to inform users of agreement conditions
- Detailed license terms disclosed before or shortly after use
- Refund options offered to users who reject the terms
- Explicit methods for accepting the agreement terms, such as clicking a box
- Highlighting uncommon terms that may surprise users
When this form is needed
This form is essential when drafting agreements for software distribution or computer services that require users to accept terms electronically. It is particularly useful when you want to ensure compliance with legal standards, protect your intellectual property, and clarify licensing terms in a digital environment. Use this form whenever you are creating transactions that involve user agreements made through software installation or online purchases.
Who should use this form
- Software developers and companies providing software services
- Independent contractors offering digital or online services
- Businesses distributing software either physically or via the internet
- Legal professionals advising clients on digital agreements
How to complete this form
- Identify the parties involved in the agreement.
- Clearly outline the terms of the license or service being provided.
- Specify the acceptance method, such as a checkbox or typed confirmation.
- Include provisions for refunds and cancellation methods.
- Highlight any unusual terms that may affect decision-making before finalizing.
Is notarization required?
In most cases, this form does not require notarization. However, some jurisdictions or signing circumstances might. US Legal Forms offers online notarization powered by Notarize, accessible 24/7 for a quick, remote process.
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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
- Failing to provide clear acceptance methods for users.
- Not disclosing key license terms before purchase or use.
- Using complex legal language that confuses users.
- Neglecting to highlight uncommon or surprising terms.
Why use this form online
- Convenience of downloading the form instantly.
- Editability to tailor the agreement to specific needs.
- Reliability of having professionally drafted content.
- Access to legal guidance from licensed attorneys.
Legal use & context
- Shrink wrap and click wrap agreements are common in software licensing and are generally enforceable if properly executed.
- Compliance with legal standards can help avoid disputes over contract terms.
- Take care to ensure all terms are clearly communicated to users to promote transparency.
Quick recap
- Ensure clear communication and visibility of agreement terms.
- Focus on making acceptance mechanisms understandable and user-friendly.
- Highlight any terms that may impact the buyerâs decision.
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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.
