The electronic contract is explained to be similar to a traditional contract in that it sets
out the rights and duties, obligations and liabilities of the contracting parties, as well
as the services to be rendered and the consideration to be received by the parties, at
the same time, it is distinct from the traditional concept of contract because of the
medium through which it is contracted.41 An electronic contract is legally enforceable
when it satisfies common law requirements such as offer and acceptance, consent
and contractual and legal capacity, just like a paper-based contract.42 Divergent views
which have been expressed on the time and place a contract comes into being where
the acceptance is communicated electronically43 birthed different theories which are
employed to determine the place and time for the conclusion of an electronic
contract.44
1.3.1.2 The Model Law’s intervention
In response to the legal uncertainty of cyber contracts, the United Nations Commission
for International Trade Law (UNCITRAL) Model Law on Electronic Commerce, 45
(hereafter the Model Law), called for countries to adopt internationally recognised
uniform electronic transactions rules based on the Model Law.46 The Model Law
intervened as a product of the expert groups to resolve the legal aspects of information
technology, and it was modified to suit commonwealth countries’ needs.47 The Model
Law’s perspective is that what holds offline holds online, and due regard must be had
to the fact that offline law often entails difficulties when applied to online situations. 48
The Model Law aims at facilitating the use of e-commerce by removing legal barriers
to electronic transacting.49 It prescribes the procedures that may be transposed into
national laws to provide an equal treatment for users of paper-based document and
41
Ahmad (2009: 226).
Fitzgerald et al (2007: 487).
43 Pistorius, T. (2002) “Contract formation: a comparative perspective on the Model Law on Electronic
Commerce” Int’l L.J. S. Afr. 129 at 145.
44 Jason, MCJ. (2004) “The legal consequences of internet contracts” 38.
45 The UNCITRAL Model Law on Electronic Commerce with Guide to Enactment 1996 with additional article 5
bis as adopted in 1998 available at www.uncitral.org/pdf/english/texts/electcom/05-89450_Ebook.pdf
(accessed 27 March 2015).
46 Papadopoulos, S. et al. (2012) “Cyberlaw@SAIII” 3 rd ed, 41.
47 Commonwealth Secretariat, (2001) “Law in Cyber Space” 5.
48 Snijders et al (2003: 1-2).
49 Van der Merwe, D. et al. (2008) “Information and Communications Technology Law” 145.
42
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