Pro Diligo Lex

Shrink-wrap and click-wrap software licences often contain what appears to be a binding contract, but if they are not drafted carefully they may be worthless.

To form a contract, the shrink-wrap or click-wrap software licence needs to be accepted by the user. There are two ways for somebody to accept a contract:

1. By the offeree communicating back to the offeror that they accept; or
2. By the offeree doing something specified in the contract, with the intention of accepting the contract.

Most people in the computing and information technology industries have heard a joke that goes as follows:

Q: What is the difference between a used car salesman and a computer salesman?

A: The used car salesman knows when he's lying.

This problem is even greater in the software industry