Part I Background, 2 Legal Aspects of Electronic Communication and Recording of Information

Subject(s):

Contract — Electronic commerce and choice of law

This chapter discusses the legal aspects of electronic communication and recording of information. In recent decades, businesses have begun to harness electronic forms of communication in order to facilitate all aspects of commerce, including the bringing together of buyers and sellers, the negotiation of agreements, the formation of binding contracts, and the processing and settlement of transactions. In many jurisdictions, legislators have enacted laws aimed at facilitating the use of electronic communications for these purposes. However, the use of electronic communication methods adds a dimension of complexity to the legal relationship between parties. Issues relating to the point at which a binding contract is formed, as well as questions regarding authenticity, confidentiality, and security of communications, may arise. Questions may also arise as to whether, and to what extent, the persons sending and receiving electronic messages are bound by or liable for those messages.