Desired behavior
The "Continue" button should not be clickable(should be disabled) if the "I have agreed the above terms" checkbox is not checked
Current behavior
The "Continue" button is clickable even if the "I have agreed the above terms" checkbox is not checked. As much as this presents a error message to the user on clicking the button and doesn't fire the button action, this doesn't present good user experience in my opinion.

Value add
This provides better users experience from a users point of view
Possible tradeoffs
Add labels