clickwrap agreement (clickthrough agreement or clickwrap license)

Contributor(s): Sharon Shea

A clickwrap agreement (also known as a clickthrough agreement or clickwrap license) is an online contract that confirms user consent to a company's terms and conditions.

Common examples of clickwrap agreements include when a user clicks an "OK," "I agree" or "I consent" button on a webpage to either create an account, download software or complete an online transaction. Another form of clickwrap agreements is "type and click" – where a user must type specific words into an on-screen box and click "Send" (or other similar button) to consent with contractual terms.

If a user consents, he or she may log in, download the software, use the service or complete their purchase. If a user rejects the agreement, they cannot.

The term clickwrap agreement grew from the concept of the shrink wrap license -- common in the software industry -- which generally states that if a package is opened, its user agrees to the company's terms of service.

The legality and enforceability of click-wrap agreements have been a topic of debate in the U.S. court system.

This was last updated in August 2014

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