March 01, 2012 Business Law

Do Web-Based Terms of Sale Work?

Clients use their websites to tell the world about their products and services, and what used to be printed on paper now exists only in electronic form. This also applies to the contracts of clients, such as their terms of sale.

Are web-based terms enforceable? As website-based contract terms are a specifically modern development, case law has only begun to address the issue of their enforceability and application. The first situations addressed by courts were those in which contract terms were posted on a seller’s website but without explicit reference to the terms within the contract itself. Is it enough for a client to post its terms of sale on its website, without more? Does doing so make them automatically binding on anyone buying the client’s goods or services? The answer is no.

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