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11 Aug 2008

Courts Turn Against Abusive Clickwrap Contracts

Jennifer Granick, Executive Director of the Stanford Law School, highlights two recent US court cases where the terms of End User License Agreements have been overturned. This follows similar findings by European courts. So is it time for software providers to re-think their contracting policies? Indeed, do these findings threaten the whole idea of electronic contracting, whether initiated by the buyer or the seller? Based on the evidence, probably not. To date, the findings have focused on consumer markets and have overturned situations were the supplier had far greater power and was imposing terms that, in the view of the court., were 'unconscionable'. So while a review appears in order, it seems that principles of electronic contracting remain secure.


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