Shrink-wrap Agreement - Explained
What is a Shrink-wrap Agreement?
Written by Jason Gordon
Updated at April 5th, 2023
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What is a Shrink-wrap Agreement?
A Shrink Wrap agreement can be defined as a legal agreement that is packaged within a product. In this type of agreement, products are sealed or enclosed in shrink wrap (plastic wrap) implying that the goods (and thus the legal document) can only be viewed by the customer who purchases it.
The Shrink wrap agreement generally includes specific terms and conditions of the product or purchase, such as price of products, warranties, right of use and guideline, limitations and licenses as the case may be.
Back To: COMMERCIAL LAW: CONTRACTS, PAYMENTS, SECURITY INTERESTS, & BANKRUPTCY
How Does a Shrink-wrap Agreement Work?
One of the features of a shrink wrap agreement is that a consumer or customer cannot read its terms of agreement until the package has been accepted and paid for.
Whether shrink wrap agreements are enforceable or not has remained a constant and controversial topic even the court of law. While some courts agree that a consumer consents to the terms in a shrink wrap agreement since he pays for and accepts the product. Others are of the opinion that the consumer could not have consented to the terms since he has no knowledge of what the terms stipulate until the shrink wrap is removed.
An example of a shrink-wrap agreement is an End User License Agreement (EULA).
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