Most retail software licenses reject (as far as local laws permit) any guarantee on the performance of the software and limit liability in case of damage to the purchase price of the software. One known case that confirmed such a disclaimer is Mortenson v. Timberline. The agreement should be clear on what the donor will provide (for example. B for local licenses, the licensee may be required to provide computer media containing the program in an executable form or, more likely these days, a password-protected website for downloads, as well as user documentation of sufficient quality and completeness to enable a competent user to run the program). It should also be clear when they should be delivered or made available. In each licensing agreement, it is also important to include a provision granting a monetary policy refund to the taker if a “repair or replacement” does not meet its essential objective. If a court finds that the licensee`s guarantee “does not meet its essential objective”, i.e. the licensee has not granted a viable remedy to the taker, some courts will overturn the contractual exclusion of the consequential damages awarded by the licensee, which could give rise to unlimited liability on behalf of the licensee. This clause favours the software developer, but the question of how far this can be implemented can be discussed. Software companies often enter into specific agreements with large companies and public authorities, which include specially designed support contracts and guarantees.
The term narrow wrap license commonly refers to any software licensing agreement that is included in software and is not accessible to the customer until after purchase. As a general rule, the license agreement is printed on paper contained in the boxed software. It can also be displayed on the screen during the user`s installation, in which case the license is sometimes called the Click-Wrap license. The client`s inability to verify the license agreement prior to the purchase of the software has led to the absence of legal difficulties in some cases. This section is about the liability limitations associated with the software.