What Is Click Wrap Agreement

Click-wrap agreements are commonly used in the digital world to establish legally binding terms and conditions between two parties. These types of agreements require the user to click a button or check a box to indicate that they have read and agree to the terms before they can use a product or service. In this article, we will explore what click-wrap agreements are, their purpose, and some of the legal implications of using them.

What is a Click-Wrap Agreement?

A click-wrap agreement is a digital contract that is presented to a user before they can access a product or service. The user must click a button or check a box that indicates that they agree to the terms and conditions of the agreement. This type of agreement is often used in software licensing or online purchases, but it can be used in any situation where a digital service is being offered.

Purpose of Click-Wrap Agreements

The primary purpose of click-wrap agreements is to establish a legal agreement between the user and the provider of a digital service. By requiring the user to agree to the terms and conditions, the provider can protect themselves from legal liability and ensure that their intellectual property rights are protected. It also allows the provider to establish specific rules for the use of their product or service, such as how it can be used, how it can be distributed, and any limitations on liability.

Legal Implications of Click-Wrap Agreements

Click-wrap agreements are legally binding, which means that once the user has clicked the button or checked the box, they are bound to the terms and conditions of the agreement. However, there are some legal implications that both the provider and user should be aware of.

One major issue with click-wrap agreements is that they can be difficult to read and understand. Many users simply click the button or check the box without reading the agreement, which can lead to legal issues down the line. Additionally, there have been cases where click-wrap agreements have been found to be unenforceable because they were unclear or contained illegal provisions.

Another issue is that some jurisdictions have specific laws governing the use of click-wrap agreements. For example, the European Union has strict rules regarding the use of cookies and requires that users be given a clear and concise explanation of what they are agreeing to. Failure to comply with these laws can result in legal penalties.


In conclusion, click-wrap agreements are an important tool for establishing legally binding agreements in the digital world. They allow providers to protect their intellectual property rights and limit liability, while also establishing specific rules for the use of their products and services. However, both providers and users should be aware of the legal implications of using click-wrap agreements, including the need for clarity and compliance with specific laws. As a professional, it`s important to ensure that any click-wrap agreements are clear, concise, and comply with all applicable laws and regulations.