Amending On-line Contracts

Contracts that are formed on-line (e.g., by clicking “I Accept”) have long been held to be legally enforceable. Some of those on-line terms and conditions purport to give the on-line business the unilateral right to amend those Ts & Cs.

In a though-provoking legal update found at http://www.mcguirewoods.com/news-resources/item.asp?item=2831, the firm of McGuire Woods asks whether a court would enforce such a provision. Their analysis is worth reading.

Their conclusion: “While it is common to see online contract provisions purporting to allow one party to unilaterally make changes, online businesses should work closely with legal counsel before adopting or using such a right.” I agree. This is one of those many wilderness areas where it is very risky for business people to proceed without a guide who knows the terrain. Companies that have in-house counsel have guides who know the terrain and the needs of the business.


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