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UNITED NATIONS COMMISION ON INTERNATIONAL TRADE LAW (UNCITRAL). Current issues on electronic contracting José Angelo Estrella Faria Legal Officer UNCITRAL secretariat. Models of e-Contracting. According to environment Closed networks (mostly EDI-based) SWIFT Supply Chains

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united nations commision on international trade law uncitral
UNITED NATIONS COMMISION ONINTERNATIONAL TRADE LAW(UNCITRAL)

Current issues on electronic contracting

José Angelo Estrella Faria

Legal Officer

UNCITRAL secretariat

models of e contracting
Models of e-Contracting
  • According to environment
    • Closed networks (mostly EDI-based)
      • SWIFT
      • Supply Chains
    • Open networks (Internet and WWW)
      • Trade Portals
      • Direct Internet Sales
  • According to participants
    • Business to business (B2B)
    • Government to business (G2B)
    • Business to consumers (B2C)
basic legal requirements for e contracting
Basic Legal Requirements for e-Contracting
  • Legal measures to enhance trust
    • Confidence in e-commerce depends on the legal system recognizing the legal value of electronic contracts and ensuring their enforcement (both B2B and B2C).
    • Law must accommodate party autonomy (particularly in B2B).
    • Adherence to modern legal standards (IP rights, privacy protection)
  • Legal measures to facilitate performance
    • Developing an online payment system involves complex issues of security, liability & taxation.
    • At a minimum, banking laws must enable payment via credit/debit-card.
e contracting b2b contract formation in the electronic age
E-Contracting (B2B): Contract Formation in the Electronic Age
  • Location of parties: Special location criteria for cyberspace?
    • Location of information systems
    • Domain names and electronic addresses
    • The risk of duality paper/electronic
  • Offers and invitations to treat
    • Traditional notion of “offer”
    • Interactive applications: web shopping
    • On-line auctions
e contracting b2b contract formation in the electronic age1
E-Contracting (B2B): Contract Formation in the Electronic Age
  • Automated systems: attribution and error
    • Computers as “electronic agents”
    • Errors
      • Human error
      • Computer-generated errors or faulty software
  • Contract content
    • Unexpected terms
    • “Battle of the forms”
  • Availability of contract terms
e contracting b2b and trade documents negotiating with paper documents
E-Contracting (B2B) and trade documents: negotiating with paper documents
  • Transfer of rights in tangible goods and other rights
    • Transfer by consent
    • Transfer by registration
    • Transfer by physical hand-over
    • Transfer by constructive possession
  • Security interests in tangible goods and intangible assets
    • Perfection by possession
    • Perfection by registration
    • Other methods
e contracting b2b and trade documents creating electronic equivalents
E-Contracting (B2B) and trade documents: creating electronic equivalents
  • General legal obstacles
    • “Writing”, “signature”, “original”
    • Registry function: authority, liability and privacy
    • Meeting legal requirements on effective or constructive possession
  • Special issues relating to documents of title and negotiable instruments
    • Negotiability
    • Singularity 
slide8
E-Contracting (B2B): Examples of electronic substitutes for documents of title and negotiable instruments
  • Electronic registry of real estate transactions (Canada)
  • Dematerialized securities (worldwide)
  • Electronic warehouse receipts (USA)
  • Electronic equivalents for paper bills of lading (Bolero)
  • Attempts to develop an electronic equivalent for negotiable instruments (USA)
related uncitral projects
Related UNCITRAL Projects
  • Omnibus convention
  • On-line dispute resolution
united nations commision on international trade law uncitral1
UNITED NATIONS COMMISION ONINTERNATIONAL TRADE LAW(UNCITRAL)

For more information on the work of UNCITRAL in the are of electronic commerce, or on other topics, please visit our web site

http://www.uncitral.org/

Thank you for your attention!

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