Contract is an legally enforceable agreement between two or more parties which consist 7 important elements:
- Proposal (Offer) and Acceptance
- Consideration
- Intention to create legal relations
- Legality
- Free consent
- Legal capacity
- Certainty
- Shrink wrap Agreement
- Click on / Click wrap Agreement
Shrink-wrap Agreement:
Shrink wrap Agreement is an agreement where terms are expressed in a document located in a box of a goods which sale in package
Case: ProCD v Zeidenburg
Complainant: ProCD
Respondent: Zeidenburg
Complainant claimed that respondent has breach the agreement where he sell complainant products through Internet.
Respondent purchased a consumer package "SelectPhone (TM)" in 1994 from ProCD, He then resell the infomation in the SelectPhone database on the Internet with lower price. He also purchase the updated version of SelectPhone and make the latest information available over the WWW for a price thru his registered company Silken Mountain Web Service Inc.
Respondent argued that the contract has been agree when the seller offer a price and his accepted by paying the price offer and leaving the store with a good. Hence he has a freedom to do whatever he like after he had good which was sold to him.
Complainant argued that when a user purchase ProCD product, in order to complete installation user need to agree the license or term and condition that pop-up on the screen when the software is loaded. The contract has the term that the software is licensed by ProCD but not the user, hence user can only use it with certain limitation. That contract is call as shrink wrap contract, and respondent cannot argue that he didn't aware the term that had written inside this contract.
As a result, Panel is favor to the complainant.
Click on / wrap Agreement:
Click on/wrap agreement is an agreement that form when a user click the button or any action required on the screen to accept any offer and term before proceeding to the next action. Button like "I agree" or check the box "I accept" are click on agreement and this can be easily found when you purchase something thru Internet where user need to click "I agree", "Yes", "Next" to done at least a deal.
Case: Van$ Money v Hotmail
Complainant: Hotmail
Respondent: Van$ Money
Complainant claimed that respondent has breach the click-on agreement where he use hotmail's email servicing to facilitate the transmission of Junk-email, also known as "SPAM mail". Those action is not allow and has been aware to the user and accepted by the user via click-on agreement before he sign-up the servicing.
As a result, panel is favor to the complainant.