Credit: ninefotostudio / Shutterstock.com That's a Wrap: Enforceability of Terms Embedded in Online Contracts
Appellate Division emphasizes the importance of providing online consumers with reasonable notice of all terms and conditions of a transaction. A prevalent issue is whether the online consumer has actually agreed to the terms.
October 08, 2021 at 10:00 AM
7 minute read
In Wollen v. Gulf Stream Restoration and Cleaning, 2021 N.J. Super. LEXIS 94 (App. Div. July 9, 2021), the New Jersey Appellate Division held that for an online consumer contract to be enforceable, the company must show that the online consumer had knowledge of and assented to its terms and conditions. In so deciding, the Appellate Division emphasized the importance for companies to provide their online consumers with reasonable notice of all terms and conditions.
In connection with many online transactions, "Terms and Conditions" will often be found on a company's website. Setting forth conditions of sale and/or service, cancellation or termination, possible limitations of liability, governing law, and dispute resolution, among other things, companies rely on the enforceability of such "Terms and Conditions" to set forth ground rules for transactions with their customers. Even after a company has posted Terms and Conditions to its website, however, a prevalent issue is whether the online consumer had a reasonable notice of the contract and has actually agreed to its terms.
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