Clarkson V. Case Study

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Introduction Whereas e-contracts were once relatively unique, click-on agreements are now quite common. Software downloads typically present end users with lengthy legal terms and require them to click “I accept” or “I do not accept” before completing the download and using the software. Clicking “I do not accept” would typically preclude the end user from installing the program. It is notable that written and verbal contracts are enforceable if they evidence four core requirements: agreement, consideration, capacity to enter into the contract, and legality. E-contracts are no different: “Electronic contracts, or e-contracts, must meet the same basic requirements (agreement, consideration, contractual capacity, and legality) as paper contracts.” …show more content…
America OnLine, Inc. In this class action suit against AOL, the company filed a Motion to Dismiss based on the forum selection clause in their click-on agreement. The judge determined that the plaintiff (offeree/end user) had agreed to the terms (including the forum selection clause) by clicking AOL’s “I agree” button. The judge further noted that Groff was never under any obligation to agree because both the terms and an “I disagree” button were readily available to him. In fact, the judge reinforced the “general rule that a party who signs an instrument manifests his assent to it and cannot later complain that he did not read the instrument or that he did not understand its contents.” (Groff v. America Online, Inc., …show more content…
America OnLine, Inc. speaks directly to the objective theory of contracts discussed by Clarkson in Chapter 11, which states that “intent may be manifested by conduct as well as by oral or written words.” (Clarkson, Miller and Cross, 225) Such conduct includes “the act of clicking on a box indicating, “I accept” or “I agree” to accept an online offer.” (Clarkson, Miller and Cross, 253) Our text points to the Restatement (Second) of Contracts and the Uniform Commercial Code (UCC) to support this understanding. Specifically, the UCC states in § 2-204 that “a contract for sale of goods may be made in any manner sufficient to show agreement, including conduct by both parties (emphasis added) which recognizes the existence of such a contract.” (Clarkson, Miller and Cross,