E-Commerce and E-Contracts PDF

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Electronic Contract and Electronic Commerce...

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Chapter 32: E- Commerce & E- Contracts

Electronic Commerce E-commerce refers to business transactions that utilize electronic networks, including the internet. Types of electronic transactions: 1. 2. 3. 4. 5. 6.

Purchase of consumer goods. The payment of bills. Internet Banking Arranging travel Enrolling and paying for tertiary education. Statutory business requirements.

The Electronic Transactions Act 1999 provides the legal framework that is it provides that a contract that is wholly or partly negotiated electronically is to be treated in the same way as a paper-based contract. The fundamental principle is electronic and paper-based commerce should be viewed and treated in the same way.

Useful terms •

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Australian Business Number Digital Signature Certificate (ABN- DSC): A digital certificate of ABN developed by government to encourage the use of digital certificates in Australia for identification in online transactions. Clickwrap Agreement: A legal agreement for which acceptance is confirmed by clicking a screen icon such as ‘I accept’ box. Cybercrime: Electronic criminal offences, usually involving unauthorized access to a computer or alteration to computer records.

Forming Contracts Electronic Contracts 1. Offer and Acceptance (Agreement): meeting of minds. It is very important to understand differences between offer and an invitation to treat. The display of information on a website is regarded as an invitation to treat. If the offer is contained in an email or website, all the terms and condition of that offer should be clearly stated. The display in website is made for world at large. If we do not want to do the business with world at large than the offer must include the restrictions clearly like time, geographical limits. Accepting of offer is done by clickwrap acceptance that is clicking “I accept” button. Section 14A and Section 14 is that as the receiver have received the email that it does not matter that he must read it.

In contract law, contracts are generally by the laws of the state or country in which the offer is accepted. The ETA states that an electronic communication is dispatched at the place where the sender has its place of business and that it is generally received at the place where the receiver has its place of business. 2. Consideration: exchange of something for something, or mutual promises.

3. Intention to create legal relations: to be legally bound.

4. Capacity to contract: cannot be drunk while entering contracts. In electronic environment, one party may not know the other party is minor or not, so they require proof of age.

5. Genuine consent: The parties should give their consent in genuine and voluntary manner. Lack of consent leads to mistake, misrepresentation, duress, undue influence or unconscionable conduct.

6. Legality of subject matter: cannot take the contracts that includes illegal subject matter. For example, cannot make contracts for drugs.

Terms of E-commerce The terms of the contract are must to be brought to the attention of the party before the contract is made especially if there are any exclusion clauses. If a party has not had a reasonable opportunity to read these terms before the contract is entered in to, they may not be bound by them. They should be easy to finds and the “I accept” button must be at the bottom at the terms of the contract.

Electronic Signatures Domain Names and the Law Domain Name: It is an internet address.

Consumer protection Electronic Banking

Practice Questions 1. In the context of the electronic transactions legislation, what standard must the signature method meet? Ans: The standard to be meet by the signature method are: • • •

It must be sufficient to identify the person. It must be sufficient to indicate the person’s intention regarding the information communicated. It must be as reliable as was appropriate for the purposes for which the information was communicated.

2. You are the record manager of a large company. Prepare a procedure checklist for the preparation and maintenance of documentary records electronically. Ans: a. Scanning documents and storing in an electronic form. b. Checking the record and verifying the document as a true and correct copy of paper. c. Maintaining appropriate security against unauthorized and accidental alteration.

3. In contract law, what is the significance of the case Entores Ltd v miles Far East Corp (1955) 2 QB 327 and how is the legal principle in that case affected by the Electronic Transactions Act 1999? Ans:...