Tuesday, October 14, 2008

The Question Is Often Raised In Relation To Contracts That Require Signature As To Whether Electronic Communications Can Amount To A Legal Signature

Business.

Contracts concluded on the internet - the law recognises that legally binding contracts can be formed over the internet, once the contractual requisites of offer, consideration and an, acceptance intention to create legal relations are present. Thus while clicking on an" I Accept" icon on a website will often be indicative of being bound by contractual terms, legal agreement can be deemed to form otherwise.


Electronic communications which purport to bring into effect legal obligations are usually binding, though courts will always look at their substance rather than their form in determining their efficacy. - similarly, the display of a" browsewrap" on a website, that the mere browsing of a website is taken as an agreement to certain terms, while often prima facie evidence that the browser is bound by agreement, can also be regarded as a unilateral attempt to bind a party to terms he has not had a chance to review. Usually legal acceptance is effected on posting or sending the electronic mail, and thereby the contract is concluded when and where the posting takes place. Questions as to when the contract was concluded and the place of agreement are important in determining in which country litigation on the contract is to take place. Certain contracts must be made or evidenced in writing and it is thought that terms and communications effected through electronic means satisfies this requirement, though there is no specific UK legislation on this point. It is thought that an electronic signature will satisfy the legal requirements of a signature, provided that the person to whom the signature is given consents. The question is often raised in relation to contracts that require signature as to whether electronic communications can amount to a legal signature.


A broad definition of what constitutes an electronic signature is applied and it is arguable that even a typed name at the end of an e - mail will constitute a valid signature, where the addressee accepts it. - the predominant method of payment is through credit card, and under uk law, consumers as contracting parties are not liable for fraudulent unauthorised use of a credit card. Regarding the issue of payment in respect of contracts concluded via the internet, under UK law there is a right to cancel certain consumer contracts made through distance communication. Where disputes arise between contracting parties in particular where those parties reside in different continents, the question as to which country has jurisdiction to hear the dispute often arises. Where there is no prior agreement on jurisdiction, EU law states that a defendant should be sued in the country in which they are domiciled. Contractual terms and conditions can expressly state which territory has legal jurisdiction. Unless otherwise agreed, the place of performance of contracts for the sale of goods is the place of delivery and the place of performance of contracts for services is the place of the provision of the services.


The law relating to contracts formed online is continually changing and it is thought that codification and assimilation of contract law in various countries would give further clarity to business transactions.

No comments: