Forum Selection Clause Is Binding By The Online Agreement

Contracts have existed for a long time. Contracts have entered a new form in the electronic age with the invention of the Internet. These click-wrap agreements are proving to be more common online. This decision of Steven J. Caspi, et al. v. The Microsoft Network, L.L.C., et al., 1999 WL 462175, 323 N.J. Super. 118 (N.J. App. Div., July 2, 1999). held that the plaintiffs had entered into a binding contract that involved a forum-selection clause by agreeing on-line via the click of a mouse to be bound by the terms of the Microsoft Network's subscriber agreement.

The following questions have been addressed in this article:

What are legal issues surrounding the click-wrap agreements?
Would the result have changed if the forum selection clause was printed in a smaller font size and not in the same size characters as the other provisions as the contract?


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