Model Law on International Contracting Essay Example for Free

Model Law on International Contracting Essay Introduction E-commerce in commodity goods has existed for decades. Electronic contracts provided a new mechanism to form a relationship via Internet and now we see many commodity products being exchanged daily on the Web. The contract can respond not only to the parties but to changing conditions of some kind and then inform the parties of these new events or conditions. The electronic contract, in other words, connects the parties to each other and, if desired, to other people and to other sources of information in ways that are difficult to imagine with paper. Time, like space, seems to be out of place or even absent in the internet environment. Consequently, different jurisdictions and different laws have challenged some contract issues. Therefore, with the advent of the Web as the new commercial medium, traders and buyers alike should be aware of some basic principles of contract formation and how they apply to Web transactions. Mostly, the approved rules of paper contract continue to hold up in a purely internet exchange between parties to an agreement. The law does, however, draw the line at certain kinds of transactions which must be fulfilled. It is important before considering the particularities of the online world, to take a step back and examine contractual formation via Internet which is the background against which the relevant rules to the online world were established. Today all developed countries try to create a uniform commercial code for business over the Internet. The purpose of this is to design a uniform legal structure for electronic commercial bargains world-wide. Steps in this direction have been taken by the UNCITRAL Model Law on International Contracting, English Law, and the CISG Convention, which has developed a â€Å"model law on electronic commerce† for international contracts in electronic commerce. This work will consider rules and standards for electronic contract performance, define what constitutes valid electronic writing and the acceptability of electronic signatures for legal and commercial purposes under abovementioned laws. It will also discuss the main forms of contracts via Internet and define problems that appeared in the formation of electronic contract today. 3. Formation of contract over Internet 3. 1 The offer 3. 1. 1 Under English Law In English law an internet contract via a website is formed after an offer a determinate indication of the terms on which the offeror is prepared to be legally bound is accepted by the offeree the person to whom the offer has been made . If the email of acceptance does not vary the terms fixed in the email of offer, a contract will be formed by the second email. An offer may be to the world in general in which case anyone may accept it or to a particular person in which case only they can accept it . At English law, a contract is concluded when an offer is accepted. Although this rule appears simple, there have been many conflicts over how to distinguish and identify invitations to treat, offers and acceptances. English common law traditionally classifies an offer as a statement by one party of his or her willingness to enter into a contract on stated terms, provided that these terms are accepted by the party to whom the offer is addressed; whereas an invitation to treat is simply an expression of willingness to enter into discussion which, it is hoped, will lead to the conclusion of a contract at a later date . Therefore advertisement of goods on the website will come only to an invitation to treat. Only when a buyer notifies about his intention to buy something from the site, the offer will only be formed. After this the seller can accept or refuse that offer. Under English Law an offer must be clear and complete and afford a distinct indication of the offeror’s intents . The offer must contemplate acceptance and a consequent obligation or obligations. An advertisement is considered as a mere invitation to do business and it is not an offer. An offeror is legally bound by the terms of the contract once his offer is accepted; while one who makes an invitation to treat is clearly free to accept (and thus form a contract) or to reject any offers that result from it, without any legal consequences.