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What is a Click Wrap Agreement?

What is a Click Wrap Agreement?

A Click Wrap Agreement is typically used when selling or licensing software online. Learn how a Click Wrap Agreement can protect your software.

11th December 2014
Reading Time: 2 minutes

What is a Click Wrap Agreement?

A Click Wrap Agreement is typically used when selling or licensing software online. A Click Wrap Agreement contains the terms and conditions that a user agrees to before gaining access to the software. Most Click Wrap agreements require the consent of end users by clicking an “OK,” “I Accept” or “I Agree” button on a pop-up window or a dialog box. Such forms of agreement are mostly found on the Internet, as part of the installation process of many software packages, eg. instagram, or in other circumstances where agreement is sought using electronic media.

Why does your business need a Click Wrap Agreement?

If you are selling downloadable software online it is important that you set out the terms and conditions for that software and how the software can be used. To avoid confusion and possible litigation, business should adopt a Click Wrap Agreement so that they can adequately discharge their legal obligations in this area of law and avoid the potential for costly contractual disputes.

Whether such forms of agreements are enforceable has raised much controversy worldwide. Click-wrap agreements are likely to be accepted and enforceable as the user can first review the conditions prior to clicking ‘accept’.

Although such agreements are most commonly used in connection with software licences, nowadays they have come to be implemented in almost any transaction online, whether it be buying an item on Ebay or simply downloading iTunes. Simply by using the internet, everyone would have come across one at some point and undoubtedly clicked ‘accept’ without ever reading a single clause.

What does the Lawpath Click Wrap Agreement cover?

  •  Grant of an appropriate software license
  •  Intellectual property rights
  •  Payment
  •  Limitation of liability
  •  Termination
  •  Confidentiality

Unsure where to start? Contact a LawPath consultant on 1800LAWPATH to learn more about customising legal documents, obtaining a fixed-fee quote from our network of 600+ expert lawyers or to get answers to your legal questions.

Dominic Woolrych

Dominic is the CEO of Lawpath, dedicating his days to making legal easier, faster and more accessible to businesses. Dominic is a recognised thought-leader in Australian legal disruption, and was recognised as a winner of the 2015 Australian Legal Innovation Index.