IP Tech Knowledgy
Terms Embedded Via Hyperlink Are Enforceable
Additional terms in online agreements that are accessible through an embedded hyperlink are themselves most likely enforceable. The customer should read them and not ignore them. The drafter providing the agreement should include language that would make enforceability of the addenda more likely.
Online agreements, such as Terms of Service and Master Services Agreements, sometimes include nested hyperlinks to additional documents that relate to a different aspect of the relationship between the contracting parties. Common reasons for including the links are to shorten the main agreement and to be able to revise terms relating to the adjunct provisions more easily. The linked destination documents are not signed but are intended to be incorporated into the main agreement. A customer reviewing the document should not gloss over those additional terms but should click on the link and review the terms.
The company providing the agreement should add language to the main agreement to help ensure the additional terms are binding. For example, if the hyperlinks are in the middle of the document and not adjacent to the signature block or the box to click to accept the terms, the drafter should add language near those acceptance locations stating that the provisions hyperlinked to the document are part of the main agreement. Making the hyperlinks stand out through color or larger font or making the hyperlink bold and/or in italics, helps to enforce the linked terms. The more it is clear that the customer has manifest assent to all the terms, the more likely it is that the added terms are binding.
Ned T. Himmelrich
410-576-4171 • nhimmelrich@gfrlaw.com
Date
April 20, 2023