An Analysis on the Terms and Conditions of the Clickwrap Agreement and the Benefits of Maintaining the Click Wrap Agreement in Cloud Computing

An Analysis on the Terms and Conditions of the Clickwrap Agreement and the Benefits of Maintaining the Click Wrap Agreement in Cloud Computing

Dhiviya Ram
Copyright: © 2022 |Pages: 20
DOI: 10.4018/978-1-7998-7927-5.ch010
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Abstract

One of the most unique forms of contracting is apparent in cloud computing. Cloud computing, unlike other conventional methods, has adopted a different approach in the formation of binding contract that will be used for the governance of the cloud. This method is namely the clickwrap agreement. Click wrap agreement follows a take it or leave it basis in which the end users are provided with limited to no option in terms of having a say on the contract that binds them during the use of cloud services. The terms found in the contract are often cloud service provider friendly and will be less favourable to the end user. In this article, the authors examine the terms that are often found in the cloud computing agreement as well as study the benefit that is entailed in adopting this contracting method. This chapter has undertaken a qualitative study that comprises interviews of cloud service providers in Malaysia. Hence, this study is a novel approach that also provides insight in terms of the cloud service provider perspective regarding the click wrap agreement.
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Background: Nature Of The Cloud Contract

An ordinary contract in the ordinary world often a written and the contract is passed from the offeror to offeree. Upon the concluding the contract, neither part could withdraw their offer nor acceptance as the contract has already been formed. The contract is concluded upon the signature of the offeree which expresses acceptance of the offer. A contract can also be verbally concluded without being in a written form. However, the standard form contract is different from a conventional contract despite have a face-to-face meeting. One would come across such contracts in many circumstances that involves sale and purchase. Nonetheless, it is also noted that in such contract, the consumers are presented a take it or leave it basis contract (similar to the clickwrap agreement as mentioned before) and this contract are rarely understood by the consumers. Hence, despite having a face-to-face meeting, it is said that terms and condition are left unread. This is because consumers consistently fail to read their standard terms. This failure undermines market pressure to provide mutually beneficial terms (Robert a. Hillman & Jeffrey j. Rach.insri, 2002).

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