For transactions in Internet-land, the offer, acceptance and consideration are as easy as a click or a tap. But according to a recently issued legal alert by attorneys at McGuireWoods, “companies continue to make basic errors when doing business via the Internet, mobile apps, tablets and other digital technologies, and one wrong turn can result in major consequences when a dispute arises.”
The firm has compiled some tips on how to avoid this and how to contract appropriately in the 21st century:
- Be clear: Just like a contract on paper, it’s essential to have the terms written in a clear and large font. The lawyers say it’s a good idea to avoid displaying the contract through a smaller window that shows only a few lines at a time. As for the check box or “click to agree” box, they say it needs to be clearly delineated as such and shouldn’t be labeled as “next” or “continue.”
- Have a print or email function: They explain that both state and federal law require electronic records to be “retrievable” and thus reviewable by the parties involved. It’s also important for companies to collect and keep the date, time, user identification and contract version each person agreed to, they say.
- Confirm identity: In order to ensure that the people contracting are who they claim to be, there are a few steps that can be taken. Either have them answer security questions, contact them through their own email address and have them click on a link, call them, use specialized software that’s available from Adobe or Docusign (to name two of many options), or look at their IP address to make sure it matches the location where the service is to be provided, suggest the attorneys.
