The Electronic Transactions Act 2002 ( Eta ) Essay
I am writing this report to illustrate the implications of the amendment 13A in the Electronic Transactions Act 2002 (ETA). The reason for the amendment was to gain certainty of when acceptance occurs in forming contracts by electronic communication. This affects eTrade for the reason that when acceptance has occurred the business is liable to perform the contract. Analysing the current law, there is a lack of certainty in regards to time of receipt and risk is heavily weighted on the one party. eTrade should therefore recommend an amendment adopting UNCITRAL convention of the time of receipt, additionally included that the contract is not binding until a receipt has been actioned.
Purpose of the recent amendment
With the changes and growth of technology there was uncertainty surrounding if the postal rule should apply to email communications in regards to the acceptance of an offer. The reason the amendment was created was to ensure certainty of when acceptance occurs regarding electronic communication (New Zealand Parliament, 2012). The amendment created in the ETA, 13A, states the acceptance of electronic communication occurs at the time of the receipt unless specified beforehand, therefore ruling out the postal rule applying to online contracts (Salmond, 2003).
Relevance to eTrade
This amendment is relevant to our business, eTrade because it clarifies our legal obligation in regards to customers accepting an offer via electronic communications. We have…