"Online contract" is a term commonly used to describe a contract which has been formed via electronic communications rather than more traditional means such as a contract recorded on paper or entered into verbally. An online contract must still meet the same requirements as a contract in the traditional sense in terms of offer, acceptance, consideration, certainty of terms and intention to be bound by the terms of the contract.
Section 8 of the Electronic Transactions Act 2002 makes it clear that the fact that a contract is concluded over the internet rather than on paper or in person does not affect its validity.
There are many ways parties can enter into an online contract. As the internet expands in scope, innovative new ways of contracting will develop. Some common ways of entering into an online contract include:
exchanging email between parties;
purchasing goods or services through an online auction;
using EDI; and
signing up for an electronic service, such as a subscription news service or music service. |