9th Circuit Court Says Companies Can't Change Contract Terms Simply By Posting Changes On A Website

Parties to a contract have no obligation to check the terms on a periodic basis to learn whether they have been changed by the other side. Indeed, a party can’t unilaterally change the terms of a contract; it must obtain the other party’s consent before doing so….

…Nor would a party know when to check the website for possible changes to the contract terms without being notified that the contract has been changed and how. Douglas would have had to check the contract every day for possible changes. Without notice, an examination would be fairly cumbersome, as Douglas would have had to compare every word of the posted contract with his existing contract in order to detect whether it had changed.

Ninth Circuit Court ruling (PDF) that that Talk America couldn’t just post contract changes on its company website and compel customer acceptance without otherwise notifying customers.

[via CL&P Blog]