Cases on Shrink Wrap Agreement and Click Wrap Agreement

Case on Shrink wraps Agreement:-

Pro CD vs Zeidenberg 980 F Spp. 640 (W. D Wis 1996)  

In this case it was held that a shrink wrap agreement violates a basic notion of contract law that both parties have to know what they are agreeing to. This decision was overturned on its appeal to the U.S 7^th circuit court of appeals (86 F. 3^rd 1447) 1996.

According to the 7^th circuit shrink wrap licenses to be enforceable because they have the beneficial effect of reducing the cost of software for consumers.

The court of Appeals decision also upheld the validity of the shrink wrap license in the question the Pro CD Case, because the license allowed the purchaser to return the software if the terms and conditions of license were un acceptable.

Indian court however emphasizes reasonable notice of the terms of the contract for the terms to be binding.

Case on Click Wrap Agreement:-

In the case of Caspi vs The Microsoft network L.L.C Supreme Court of New Jersey Appellate Division 1999 N.J. Super Lexis 254 (July 2 1998).

Validity of click wrap license was examined.

Before becoming an MSN member; a prospective subscriber is prompted by MSN software to view multiple computer screens of information, including a membership agreement which contains the above clause. MSN’s membership agreement appears on the computer screen in a scrollable window next to the block providing the choice “I Agree and I don’t Agree”.

Prospective members assent to the terms of the agreement by clicking on “I Agree” using a mouse. Prospective members have the option to click “I agree or I don’t Agree” at any point while scrolling through the agreement.

Registration may proceed only after the potential subscriber had the opportunity to view and have assented to the membership agreement; including the MSN’s forum selection clause. No charges are incurred until after the membership agreement review is completed and a subscriber has clicked on “I Agree”.

Agreement, Shrink Wrap & click Wrap Agreement......

Agreement: - A contract is an agreement which is made between two parties with an intention of creating some legal relations. The Contract or agreement must be in writing, an oral contract is also valid. There are remedies for the breach of contract or agreement. There are some issues which are involved in an Agreement and they are as follows:-

·         Intention to enter into legal relation,

·         Proposal,

·         Acceptances,

·         Communication,

·         Consideration,

·         Competency of parties,

·         Remedies for the breach of contract.

When the matter comes to contract or agreement in Cyber Space all the features of general contract / agreement can be examined.

Sometimes all features of general agreement are applicable and sometimes due to the broad and unlimited reach and nature of Cyberspace some of the features of general contract /agreement are not applicable.

Definition of Agreement in Cyberspace: - whenever an agreements or contract is made in the cyber space by using any electronic medium or through internet by making click or through email exchange.

There may be two major types of electronic agreements and they are as follows:-

1.      Shrink wrap Agreement.

2.      Clicks wrap Agreement.

Shrink Wrap Agreement:- before understanding Shrink Wrap Agreement we have to first understand what is shrink wrap,

Shrink wrap: - shrink wrap is the plastic packaging or wrapping used to coat software product and is sealed by heating the plastic wrapping.

ShrinkWrap Agreement:- Shrink Wrap Agreement are the license agreement are some set of terms and conditions of contractual nature for initiating legal relations between two parties which can only be read or accepted by the parties only after opening the wrapping of the product.

Click wrap Agreement: - Click Wrap agreement is the online version of Shrink wrap agreement which state that click wrap agreement is the agreement or some set of terms and conditions of contractual nature for initiating legal relations between two parties when an online buyer or user click on any terms or condition or on any agreement to purchase or to use any services of a company online.

Both Shrink Wrap and Click Wrap Agreement are very much to understand in Cyberspace because today we are getting involved in E commerce and internet activities. During these internet activities we get into either a Shrink wrap agreement or a click wrap agreement with the Service provider.

Packet Switching

Switching: - Switching is the technique of transferring the data from one place to another place or from one network to another network very fast and quickly.

There are three types of Switching:-

1.      Circuit Switching.

2.      Message Switching.

3.      Packet Switching.

·         Circuit Switching: - Circuit Switching is the Switching technique in which a dedicated channel or circuit is established between two nodes for the transfer of data.

·         Message Switching: - Message switching is the technique of switching in which data is transferred in the form of messages. Each message is treated as a separate entity and the data is transferred through different routers.

·         Packet Switching: - Packet switching is the technique of switching which is used to transfer the data on a local or long distance. In packet switching data is divided into small packets for transmission. Each data packet carries a header which stores the destination address in it. When the packets reach to the destination they again from the complete message in the similar from it was before transmission.

A packet comprises of:-

ž  Source: - The IP address of the computer sending the packet.

ž  Destination: - The IP address of the destination computer.

ž  Length: - The length of the packet in bytes.

ž  Number: - The total number of packets in the complete message.

ž  Sequence: - The number of this packet in the whole list of packets making up this communication.

Sometimes it happens that the packets of message do not reach the destination because of the congestion in the network. In this case when lots of message will be missed there will be many junk files in the network which will block the network. To avoid these Hop packets is used along with the message packets.

Hop packets: - Hop packets are the packets in which a fixed number is defined for every packet and within that number only the packet must reach the destination and if it doesn’t happen the packet will be deleted by its own. Every packet the message will pass the hop number will be decreased. 

Advantages of Packet Switching:-

ž  It makes very efficient use of the network - no tied-up lines.

ž  It can easily get around broken bits of the network.

ž   As customers increase, the network only has to expand slowly compared
 to circuit switching.

Disadvantages of Packet Switching:-

ž  The time it takes to put back the data package changes each time, which can be a problem for time-critical information such as an emergency signal. The fancy name is for this is 'latency'.

ž  Not very good for small data packages - for example if the data package itself is only 600 bytes long, then two packets of 512 bytes need to  be used, plus the address information.

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