Assignment Contract Law PDF

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Question 1

Electronic contract ("E-Contract") is a type of contract formed by electronic means rather than exchanging signed written documents. According to the Electronic Commerce Act 2006 ("ECA"), contracts formed by electronic means are legally recognized as valid and enforceable contracts in Malaysia. An E-Contract is therefore just as enforceable and valid as a paper contract. Traditional elements of contract forming, namely the offer , acceptance, consideration and intention to create legal relationships, therefore apply to the formation of an E-Contract.1 Digital signatures are like electronic "fingerprints." The digital signature securely associates a signer with a document in a logged transaction in the form of a coded message. In Malaysia, the 1997 Digital Signature Act was enacted to deal with issues relating to electronic signatures, mainly in the e-commerce arena. Section 9(2) of the Electronic Commerce Act 2006 specifically provides for the application of the Digital Signature Act 1997 where it is applicable to any digital signature that is used as a medium for an exchange. Section 9(1) provides that the legal obligation of a digital signature shall be established where the criteria set out are met. An inference can be drawn as both the European Directive and the Malaysian legislation have adopted a view and approach that allows the use of digital signatures and on an application very similar. Hence the notion that you have to use pen and paper physically to sign a contract or an agreement is now a thing of the past. Despite sufficient similarities, the term adopted by the Malaysian Act, 'digital,' indicates that the term 'electronic' is specific to technology as compared to other legislation. It seems to suggest that by adopting and applying the term 'digital' the Malaysian Digital Signature Act 1997 followed the approach of being technologically specific as per Utah Digital Signature Act 1995. 2

While Section 7 of ECA explained about the formation and the validity of a contract. Section 7(1) of ECA stated that when a contract is formed, the communication of proposals, acceptance of proposals, and revocation of proposals and acceptances or any related communication may be expressed by an electronic message. In Section 7(2) , it explained that a contract shall not have legal effect , validity or be denied enforceability on the ground of use of an electronic message in creating it. This law recognized the formation of contracts through electronic messages. In 2006, The Government of Malaysia enacted the electronics Commerce Act 2006 establishing the legal recognition of electronic communications in commercial transactions, use of electronic messages complying with the legal requirements and enable and facilitate trading through the use of the means electronic . This act has been modelled to a great to the Commission of the United 1 What Are You Agreeing to an e-Contract on Online Shipping Platforms” (GLT Law - Gan, Lee & TanSeptember 16, 2019) accessed August 22, 2020 2 “What Is a Digital Signature & How Do I Create One?” (DocuSignAugust 27, 2019) accessed August 22, 2020

Nations on International Model Law on Electronics (UNCITRAL) Commerce 1996. Some of legal principles were adopted including functional equivalence principles and technology neutrality.

Section 8 of the Electronic Commerce Act 20063 states that where any law requires information to be in writing, the requirement of the law is met if the information is contained in an electronic message that is accessible and intelligible so that it can be used for further reference. This law showed that no paper or document required in order to form a valid contract. This can be seen in the case of Forcelli v Gelco4. In this case, a representative of the insurance company of Gelco Corporation offered $230,000 to the plaintiff to settle the case first orally and then reiterated in an email . The plaintiff agreed, but when Gelco tried to withdraw from the payment after winning the case a few days later, in a separate case, the New York Appellate Division ruled that the email was a legally binding contract and that Gelco had to pay the full amount on the offer.

3 “Electronic Commerce and the Legal Issues” (UMLR | University of Malaya Law Review) accessed August 22, 2020 4 Is an Email Legally Binding: Everything You Need to Know” ( UpCounsel) accessed August 22, 2020...