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The issue of the validity of Clickwrap License

 Some characters of shrinkwrap licenses and clickwrap license are same as the concept of contract of adhesion in traditional contract law. The issues on contract of adhesion will help us to have a deep look into clichwrap licenses. So I will introduce contract of adhesion next.
 B. Contract of adhesion in traditional contract law
 “Contract of adhesion” means one party drafted and offered a contract on a “take it or leave it” basis with little opportunity for the other party to bargain or alter the provisions. It has existed in much of modern business, such as the lending contracts of banking and insurance contracts. It is a challenge to much contract theory and still is an unsolved issue in the courts.
 Contract of adhesion has the negative facets. The terms in this kind of contracts are drafted by one party, usually the entities, with a view to protect themselves, thus minimizing the realization of the reasonable expectations of the adhering party. This kind of contracts and other standard forms contracts might violate the law on three grounds:" (1)there was not true assent to a particular term;(2) even if there was assent, the term is to be excised from the contract because it contravenes public policy;(3)the term is unconscionable and should be stricken " . If the clauses impose a great hardship or risk on the weaker party, the clause should be brought to the adhering party’s attention and explained.
 At the other hand, contract of adhesion has many advantages, and that is why it has existed. The standardization of forms of contracts is rational and economically efficient, and they can help the enterprise calculate the costs and risks of performance. It has the theoretic basis on the traditional duty-to-read concept. So “there is nothing inherently wrong with a contract of adhesion” .
 C. Apply the contract law theory to clickwrap licenses
 With application of traditional contract theory, we can find there are at least three potential arguments against the enforcement of shrinkwrap and clickwrap agreements: (1) the contract is unenforceable if it lack of assent (depending on the location of the license within the packaging); (2) the agreement is unenforceable if it conflict with public policy; (3) particular terms are unconscionable. Among these arguments, lack of assent is related to the unique electronic character of clickwrap. Computer information contracts do not work exactly the same as sale of goods contracts. The electronic character of clickwrap license make it different from contract of adhesion, so the tradition contract theory can not provide answer for this issue totally. Those who want to enforce the clickwrap licenses, need to find new legal reasons.


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