Shrink-wrap agreements are named for the license agreements contained in the packaging of commercial software products. Online, these contracts provide notice that continued use of the site will constitute the user's agreement to the site's terms and conditions. Generally, courts hold that these agreements are enforceable, if proper notice is provided to the website user.

Often, the user of a commercial website is asked to read a set of terms and conditions governing the activities and then asked to agree to those terms and conditions before making a purchase or obtaining the service offered by the website. Agreements entered into in this fashion are referred to as "click-wrap" agreements because the user typically indicates his or her agreement to the terms and conditions by clicking a button or hyperlink marked "I agree." Such contracts are generally binding, subject to traditional contract law principles.

In some instances, websites contain terms and conditions which purport to bind any user who visits the website, without any other manifestation of affirmative agreement by the visitor. While notice of the terms and conditions usually appears on the website, the user is not required to view the provisions of the "agreement" or to undertake any affirmative action indicating an agreement to those terms. Accordingly, many courts are hesitant to enforce the these agreements.

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