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Business Law - 6 Case Research Proposal

Thereafter, Novak appealed the decision in the Alabama case successfully and then filed an action against Tucows for illegally depriving him of his property by conversion. Tucows' defense to the action relied on a clause in their contract with Novak that specified a Canadian forum to resolve any disputes but Novak argued that an automatic process of "clicking through" a contract could not hold him to a forum selection clause that was not negotiated specifically. Legal Issue:

Is a party to a contract held to a forum selection clause when that clause was not subject to a negotiation?

Decision:

The process of "clicking...

The transfer of the property by Tucows pursuant to legal order was proper at the time.
Rationale:

Public policy is not served by allowing parties to contracts entered into in a standard process to escape the effects of those contracts. Nor is public policy served by allowing parties subject to default judgments to hold innocent parties responsible for complying with lawful orders in connection with satisfying default judgments validly entered against those parties.

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