Not every EULA is the same. Some contracts stipulate acceptance of the agreement simply by opening the shrink-wrapped package; some require the user to mail back to the manufacturer a signed agreement or acceptance card; some require the user to accept the agreement after the application is installed by clicking on an acceptance form that appears on the user’s monitor. This last method is typical of applications that can be downloaded from the Internet. In all instances, the user has the option of not accepting the EULA, subsequently surrendering the rights and ability to use the software.

As in typical legal contracts, the EULA protects both parties from liability if the software is used in a way not intended by the manufacturer or author.

The EULA also is often referred to as the software license or user license.