To Arataki,
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 …show more content…
We have our products displayed on the website which is considered an offer and customers email in when they would like to accept, therefore entering into a legally binding contract. Additionally, our business deals with international customers so communicating via technology is our main source of communication. Having this amendment means similar to the postal rule, that we are required to state in our contracts when acceptance occurs otherwise the default rule stated in section 13A applies. This was important as stated above, when acceptance occurs a contract is legally binding which held concern for our …show more content…
This would be one of eTrade’s points of why the current law is still not satisfactory; holding our business liable because we did not receive the electronic communication does not seem justified. The offeree is receiving a benefit from the contract so the risk ought to be weighted evenly. In the Irish courts a judge held it was unjust to hold a party to a contract they were not aware they had entered into in the case of Kelly v Cruise Catering Ltd.
Additionally, the postal rule was established because it was thought that the postal delivery service was so reliable it didn’t hold significant risk, which ISP is not.
The other issue with the current law is the definition and meaning of certain phrases. When does it enter the information system? How do you designate an information system and what constitutes coming to attention of addressee. All of these phrases lack clarity and hold huge legal implications for a business.
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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 …show more content…
We have our products displayed on the website which is considered an offer and customers email in when they would like to accept, therefore entering into a legally binding contract. Additionally, our business deals with international customers so communicating via technology is our main source of communication. Having this amendment means similar to the postal rule, that we are required to state in our contracts when acceptance occurs otherwise the default rule stated in section 13A applies. This was important as stated above, when acceptance occurs a contract is legally binding which held concern for our …show more content…
This would be one of eTrade’s points of why the current law is still not satisfactory; holding our business liable because we did not receive the electronic communication does not seem justified. The offeree is receiving a benefit from the contract so the risk ought to be weighted evenly. In the Irish courts a judge held it was unjust to hold a party to a contract they were not aware they had entered into in the case of Kelly v Cruise Catering Ltd.
Additionally, the postal rule was established because it was thought that the postal delivery service was so reliable it didn’t hold significant risk, which ISP is not.
The other issue with the current law is the definition and meaning of certain phrases. When does it enter the information system? How do you designate an information system and what constitutes coming to attention of addressee. All of these phrases lack clarity and hold huge legal implications for a business.
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