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because no money has changed hands


How very USAian!


Not to mention showing a decided lack of understanding when it comes to contract law.


If you say so, but they disagree. Money isn't the only possible consideration, as promises or services can also be considerations in a contract.

The true question is, for there to be a valid contract between a user and AOL, the user would have to give something back to AOL. They provide the client software and data network. What do you provide? I don't exactly think "using their service" counts as a consideration.