Legal Updates

When clicking on agreement to an online contract is a pre-condition for service it is deemed a uniform contract

August 26, 2019

Google's standard service agreement stipulates that Google may revoke the right of its advertisers in the event of a breach of the service agreement by them. After Google notified of a breach of the agreement, Google took from the advertiser all revenue accrued to it.
The Court held that Google will refund a large portion of the money accrued to the advertiser. The vast majority of online agreements are not subject to negotiation and a party joining the service offered by the web platform can only accept or reject the online agreement in its entirety. Thus, these online contracts are a uniform contract. A condition in a uniform contract which is a "depriving condition" may be canceled or modified by the Court. A sanction imposed and which is liquidated damages in an amount that is not pre-defined, is a depriving condition. Although the advertiser breached the service agreement and policy, for example, through fictitious advertising clicks (to generate multiple charges) and although the termination of the agreement was justified, the monetary sanction of the full amount of revenue is not valid.