Definition & Meaning:

Clickwrap is a method of agreement where you accept the terms and conditions of a software or online service by clicking a button or checking a box that says I agree or similar phrases.

This process is common when installing software, signing up for online services, or making online purchases. For example, before you can use a new app on your smartphone, you often have to agree to the app’s terms of service by clicking a button.

The term comes from the combination of click and wrap, referencing older shrink-wrap agreements that were accepted by opening the shrink-wrapped package.

The clickwrap method is designed to legally bind you to a contract, assuming you have had the opportunity to read the terms and conditions associated with the service or product.

Courts have generally upheld clickwrap agreements as long as the terms are presented in a clear manner and the user has a chance to review them before agreeing.

It’s important for the agreement to be visible and not hidden within long paragraphs of text or behind obscure links, making it clear that you are entering into a contractual agreement by clicking I agree.

In practice, when you click to accept, you are saying that you have read, understood, and agreed to the terms presented, which can include payment obligations, cancellation policies, privacy practices, and more.

Companies use clickwrap agreements to ensure that users are aware of and consent to these terms, providing legal protection and setting clear expectations for both parties.

This makes it important for you, as a user, to actually read and understand these terms, as they detail your rights and obligations under the agreement.