Contracts

Lesson 42: Online Agreements

Welcome to the lesson on Online Agreements as part of our exploration of Electronic and Digital Contracts. Online agreements are a fundamental part of conducting business in the digital age. This lesson will cover key aspects, including their legality, enforceability, and best practices for drafting.

What are Online Agreements?

Online agreements are contracts that are created and agreed to over the internet. Common types include clickwrap agreements, browsewrap agreements, and electronic signatures. For a deeper understanding of electronic signatures, refer to our lesson on E-Signatures.

Online agreements are just as enforceable as traditional paper contracts if they meet the necessary legal requirements.

Types of Online Agreements

Clickwrap Agreements: Users must click "I Agree" to the terms.
Browsewrap Agreements: Terms are available via a hyperlink, and use of the service implies acceptance.
Electronic Signatures: Individuals sign using digital means.

Enforceability of Online Agreements

For an online agreement to be enforceable, it must meet the same criteria as traditional contracts:

An offer and acceptance
Consideration
Intention to create legal relations
Capacity to contract

Make sure your online agreement includes clear and conspicuous terms to ensure users are aware they are entering a contract.

Best Practices for Drafting Online Agreements

Use clear and plain language.
Ensure terms are accessible and easy to read.
Provide a way for users to review the agreement before accepting.
Keep records of user acceptance.

Visualization of Online Agreement Workflow

graph TD; A["User visits website"] --> B["User reviews terms"]; B --> C["User clicks 'I Agree'"]; C --> D["Agreement recorded"]; D --> E["Service provided"];

Legal Precedents and References

For more detailed information on the legality and enforceability of online agreements, you can refer to Contract Law: Selected Source Materials.

Conclusion

Online agreements are crucial in today's digital landscape. By following best practices and ensuring legal compliance, you can create enforceable online contracts that protect both parties. To explore more about contracts, visit our previous lesson on Electronic Contract Formation or continue to our next lesson on Contract Lifecycle Management.