An Intended Beneficiary Is Held To The Terms Of The Shrinkwrap Agreement

Shrink-wrap contracts are becoming more common with the selling of computers by manufacturers by mail order. This decision of Melissa Westendorf v. Gateway 2000, Inc., 2000 Del. Ch. Lexis 54 (Del. Chancery Court, March 16, 2000), the plaintiff, an intended beneficiary of a third parties' purchase of a computer from defendant, entered into a contract with defendant by retaining that computer for 30 days in accordance with the terms of the agreement provided her at the time she received the computer. The court was not persuaded that she was not bound by these contractual terms merely because she had received the computer as a gift.

The following questions have been addressed in this article:

What are the conditions that a court will examine to determine if a shrinkwrap agreement is enforceable?
Why did the court allow the arbitration clause to become a part of the second contract even though it was not incorporated as a term?
Is it plausible that the donee or gift recipient had the opportunity to reject the terms by returning the computer?


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