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The Updating Problem: Offer and Acceptance. Richard Warner. An Example. “Amazon provides website features to you subject to the following conditions. If you visit or shop at Amazon.com, you accept these conditions .”
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The Updating Problem: Offer and Acceptance Richard Warner
An Example • “Amazon provides website features to you subject to the following conditions. If you visit or shop at Amazon.com, you accept these conditions.” • Does the duty to read entail that I have agreed to the terms—including that my use of the site shall count as acceptance? • Recall that an acceptance is a (1) manifestation of a willingness to enter the bargain proposed by the offer (2) in a way invited or required by the offer.
The Apparent Difficulty • Contractual obligations are freely undertaken. • This requires knowing what the obligations are. • So how can hypothetical knowledge of terms and a “no other option” choice meet this condition?
A Current Puzzle: Updating Contracts • Amazon: [1] Our business changes constantly, and our Privacy Notice and the Conditions of Use will change also. . . .[2] you should check our Web site frequently to see recent changes. . . [3] our current Privacy Notice applies to all information that we have about you and your account. [4]We . . . will never materially change our policies and practices to make them less protective of customer information collected in the past without the consent of affected customers.
The 9th Circuit’s Attitude • The court held such amendments unenforceable in Douglas v. Talk America • a service provider cannot unilaterally change the terms of its contract by merely posting a revised contract. • Parties to a contract have no obligation to check the terms on a periodic basis. • A revised contract is merely an offer So does not bind the parties until it is accepted, and even if it were, • An offeree cannot assent to an offer unless he knows of its existence. • Reason: offer and acceptance plus consideration form a binding agreement.
Provide notice Do not require response Require response, do not allow any use of site Some respond Most do not respond Undesirable from a business point of view. Acceptance? Acceptance
Can We Make Sense of This? • What if this is the offer? “Use Amazon and Amazon can make small changes to the terms of use.” • Contracts often give one party the power to make unilateral decisions that determine the extent of their obligations—for example: • Cancellation clauses, • Publication contracts • Best efforts clauses.