Electronic Data Interchange Background: A Discussion

Main body

Discuss about the Electronic Data Interchange Background.

From the several years electronic contract are existing, the people have been creating contract by the electronic means for a numbers of years. Previously the maximum numbers of electronic contract were made in Electronic Data Interchange or EDI background. The large companies have conventionally used this to transact via close ended proprietary network and utilizing value added network. This makes a connection between the suppliers and the retailers. It helps in reducing the time as it can be done within a fraction of time duration. Apart from this, the electronic contract or electronic transaction also helps in improving the efficiency of the contractual process. Therefore, the processes become faster and more effective so that the entire contractor parties are benefitted. The EDI standards play vital role in interchanging electronic communication. However, a significant amount of business activities has been performed via e-mail thus the electronic business flourishes even without the EDI standard. Maximum numbers of the electronic transaction do not need any signature; valuable contracts also can be done without any writhing. There are significant numbers of contract are made each day via e-mail. In this context it is important to know, whether the electronic contracts are valid or not. In case of any discrepancy is there any law help the plaintiff.

The e-contracts are theoretically very similar to the conventional business contract. Vendors offer their products and services with price and terms and condition to the prospective buyers. The buyers consider the options and match with their needs, then negotiate rate and terms if possible and then place order and then make payment. After that the vendors use to deliver the procured goods. On the other hand, as because of the manners in which it varies from conventional commerce, the electronic commerce invokes few novel and interesting technical as well as legal disputes.   For a valid contract, there are six element should be present, which are as follows: willingness to make a legal contract, an offer, an acceptance, followed by consideration, examining capacity of the contract and the legality of the contract. Same as written contract in electronic contract also require the same elements to fulfill the norms as well as rule and regulations of a valid contract. The making of an obligatory legal contract the court enforces the contracting parties to accomplish a variety of requirements, which are prescribed by the contract law of the country. These requirements must be fulfilled prior to the completion of a contract. Moreover, for the valid contract the six important elements must be presented there, otherwise the contract may be void. In addition to the 6 fundamental elements certain categories of contract ought to be in writings form, in an electronic alternative. The electronic contract also requires these six elements in order to make a valid contract. The idea of a contract as a bargain or conformity struck by two or more parties on the basis of the principle that the outcome will be accomplishing of the mind of the parties on the term as well as conditions, which will create the conformity with each other. Each party will generally agree to perform certain things in returning due to the promise of the other party to perform definite things of specific characteristic.  

As per the contract law of Australia an electronic contract is no less in comparison to a simple contract as it is done via computer. The bright line rules in respect of the online contract are remained being developed. The courts normally apply the conventional contracts law principles to the online contract. There are a vast number of online contract made up by a click wrap agreement. The typical shape of electronic contract adds online terms of usage intended for popular web based services. On a click wrap contract the user normally manifests consent by clicking an ‘I accept ‘icon on the web pages or in pop-up screen. The courts concentrate on click wrap contract have equivalently held the electronic contract valid along with enforceable. Like any other contract if a user failed to read the click wrap contract before accepting its term and condition will not explain compliance with its terms. In this matter DeJohn v The T.V. Corp. International case can be given as example where the plaintiff DeJohn enter in a agreement by clicking ‘I agree’ icon on net.  A web wrap is used for the law of internet in a reference of contract or license agreement and it protect access or usage of web material on a specific web site. In the Case study Ruder v Microsoft Corp. where the plaintiff Rudder claim damage for violation of contract and the defendant was Microsoft Corp. apart from this in the case of Spechet v netscape communications Corp. is a case of enforceability of web wrap software license.   A valid contract needs an offer, acceptance along with a consideration. The offer produce in the internet are valid offer because as per the contract law a valid offer shows a willingness to make an entry into a bargain so as build as to provide justification to another person in order to understand that his/her assent to that specific bargain is invited as well as will conclude it. An offer comprised with an acceptance which outcome in mutual asset. An acceptance is made at the time when the acceptance of the offer is mailed or else sent. The rule is accepted for the electronic offers. According to the case of Entores Ltd Vs Miles Far East Corporation; CA 1955 a contract will be considered as valid completed contract after only the acceptance is obtained by the receiver.   An electronic acceptance is useful at the time of acceptance is mailed or sent. Mutual assent or agreement is the expression by the both parties on an intention to be bound. The approval of an offer can be agreed by acts along with words including via email communication. The contract offer along with the acceptance via distinguish email can also use suffice in case of mutual assent is reached. As per the case of Leach Nominees Pty v Walter Wright the acceptance via telex can be accepted according to the postal acceptance rule. The postal rule states that the acceptance take effect as soon as the letter of acceptance is posted. There are several cases like Adams v Lindsell (1818), household Fire Insurance Company v Grant support this argument.  The electronic offer is as same as the traditional written offer as like the traditional contract offer, electronic contract also has offer, acceptance, and consideration.  A mutual assent comprises of an offer by a party as well as an acceptance of that particular offer by another parties.  A large body of rule along with the guidelines, which addresses enforcement as well as contract information, comprises contract law. Contract is basically nothing but a promise or a set of promises and for the violation of these promises the law offer remedies. Electronically the contract can be formed by disseminating the offers in the websites, there are click wrap options, and the interested candidates accepting the offers by clicking on the options, there are also a set of terms and conditions which bind the parties within the contract. The electronic contract formation usually same as the other contract formation there are also a intention for a creation of legal contract, offer, acceptance, consideration, capacity of the contract and legality of the contract. Here the technologies play important role as in formulating a legal contract. The vendors place offer, the interested party apply for the offer and in the offer form there are the terms and condition are written. After the acceptance of the contractual offer by the interested parties, the vendor use to provide delivery of the items means the promised goods or services.

The offers displays in the internet are actual mostly offer, and the legality for the offer use to be performed prior to the circulating the offer. However, often it is seen that some people make offer in the internet, which are face and intend to cheat the customers. Basically in the email offer it can be seen, where there is not any term and conditions or fake term and condition and fake legal jurisdictions. Therefore, it is recommended that if you do not know the person who gives the offer personally do not accept the offer as it may be fake offer. The offers placed by the e-commerce site are valid offer and you can accept those offers without any hesitant. The offers are bonded with few predetermined terms and conditions. The offerors create the terms and conditions and the acceptors of the offers have to obey the terms and conditions. In the case of electronic contract the offer is made by the offerors and circulated in the websites the interested people accept the offer by clicking the click wrap option. The clock of the click wrap option by the users implies that the users accept the offer. The contract law as per the case Mehta v j Pereira Fernandes SA; CHD/APR2006 is included under the common law. The prties of the case were dispute.

A party who wish to accept the offer can withdraw the offer within a predefined time period stated in the offer form or offer page in the internet. The vendors who circulate the offer furnish the offer with some predefined term and conditions where the time limit for withdraw the offer also been stated and within the time frame the party who accepted the offer can withdraw the offer and annual the offer in case of by mistaken he/she accepted the offer without knowing the terms and condition or the quality and goods and services or the prices of goods and services.  As per the Australian contract law an offer, irrespectively in written contract, oral contract, electronic contract and any other form of contract a time has been provided and within the time period the contract can be withdrawn. The country’s electronic contract are governs by the Electronic Transactions Act 1999. (Cth), and as per the norms and rules the electronic contract can be withdrawn with a predefined time period.

The law furnished in Electronic Transactions Act 1999. (Cth),  provide the adequate legal help to the parties who are bonded with the electronic contract in order to resolve the dispute in the contract among the parties.                                                   

In this matter in Australia there is an important Electronic Transactions Act 1999. (Cth), the Act provides the essential guidelines for the electronic transaction and contract formation. It is the country’s application of UNCITRAL Model Law intended for Electronic Commerce of 1996. The opening of the Act pursued a report by Electronic Commerce Expert Group in July 1998. The expert team examined the current law and detected that there were situations where the present law did not precisely resolve the legal issues. The team made the perceptions that these uncertainties or doubts would restrain the development of electronic commerce.    

There are some problems in the electronic contract which are as follows: it is problematic to evaluate if there is a valid and binding contract regarding sale as well as purchase, whether the exchange of email was adequate to satisfy the needs in section 59 of the PLA that a valid contract for the sale of land ought to be in writing as well as signed by the party or authorized representatives. There was not any intention by the parties to be legally bonded by the email exchange.    

Conclusion

The electronic contract is increasing day by day and its importance is also enhancing over the time. With the advancement of the information technology and latest communication techniques as well advancement in the internet technologies has brought a boom in the electronic transactions. E-commerce is widely used in modern day context. There are several e-commerce sites like amazon, ebay, many more appears in the scene, and the offer and contract are legally bonded. The e-contracts are supposedly alike to the traditional business contract. Vendors offer their products and services with price and terms and condition to the prospective buyers. The buyers consider the options and match with their needs, then negotiate rate and terms if possible and then place order and then make payment. There are some legal issues in electronic contract which occurs due to the technological advancement and the rules are amended as per the needs of the changes.

References

Carter, John W, Contract Law In Australia (Lexisnexis Orders/service, 2012)

Chadman, Charles E, Contracts And Partnership (Bridge Publishing Company LLC, 2009)

Doris, Martin, “Promising Options, Dead Ends And The Reform Of Australian Contract Law” (2013) 34 Leg Stud (Soc Leg Scholars)

Ellinghaus, M. P, Australian Cases On Contract (Code Press, 2007)

Gibson, Andy and Douglas Fraser, Business Law (Pearson/Prentice Hall, 2007)

Hiscock, Mary E and William van Caenegem, The Internationalisation Of Law (Edward Elgar, 2010)

Monahan, Geoff and Susan Carr-Gregg, Essential Contract Law (Routledge-Cavendish, 2007)

Radan, Peter and John Gooley, Principles Of Australian Contract Law (LexisNexis Butterworths, 2009)

Turner, Chris, Unlocking Contract Law (Taylor and Francis, 2014)

Barker, David, Essential Australian Law (Cavendish, 2005)

Burrell, David and John G McGinn, Cornerstone Law Series (Law Society of South Australia, 2009)

Contract Law In Context (CCH Australia, 2014)

Elliott, Catherine and Frances Quinn, Contract Law (Pearson Longman, 2007)

Homburg, John, Cornerstone Law Series (Law Society of South Australia, 2008)

Paterson, Jeannie Marie, Unfair Contract Terms Law In Australia (Thomson Reuters (Professional) Australia, 2011)

Tarakson, Stella, The Law In Australia (Heinemann Library, 2007)

Thomas, Geoff, Cornerstone Law Series (Law Society of South Australia, 2010)

White, Richard, Cornerstone Law Series (Law Society of South Australia, 2009)