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A clickwrap agreement is a type of contract that is widely used with software licenses and online transactions in which a user must agree to terms and conditions prior to using the product or service.
The format and content of clickwrap agreements vary by vendor. However, most of clickwrap 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. The user may reject the agreement by clicking the Cancel button or closing the window. Once rejected, the user us unable to use the service or product.
A clickwrap agreement is also known as a clickwrap license or clickthrough agreement.
Chances are that you agree to clickwrap contracts on a regular basis. These agreements typically appear in an independent page when the user undergoes an online registration process, such as an email account creation, online banking login process, online purchase, or a new program installation. At times these agreements are laughable, displaying dozens of pages of text in a tiny window that practically no user would take the time to read.
The term comes from shrink wrap contracts that are also common in the software industry. The basic idea is that the user is given a notice saying something to the effect of "by opening this package, you agree to our terms and conditions..."
Clickwrap agreement permits the online companies to have contracts in place with numerous customers without negotiating with them individually. In addition, clickwraps permit the companies to save electronic signatures and incorporate additional clauses that are not provided by the present cyber law.