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Features of Conclusion of Electronic Contracts

Electronic contracts have become increasingly common as businesses move online. The document discusses the key features of electronic contracts under Ukrainian law. An electronic contract is a legally binding agreement concluded between two or more parties using electronic means. Electronic contracts must include all essential terms and conditions required for the relevant contract type. To reduce risks, parties should actively communicate before signing, comply with electronic offer and acceptance requirements, and confirm agreement in writing where possible. While electronic contracts are legally equivalent to traditional written contracts, case law is still developing to establish clear precedent.
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0% found this document useful (0 votes)
56 views

Features of Conclusion of Electronic Contracts

Electronic contracts have become increasingly common as businesses move online. The document discusses the key features of electronic contracts under Ukrainian law. An electronic contract is a legally binding agreement concluded between two or more parties using electronic means. Electronic contracts must include all essential terms and conditions required for the relevant contract type. To reduce risks, parties should actively communicate before signing, comply with electronic offer and acceptance requirements, and confirm agreement in writing where possible. While electronic contracts are legally equivalent to traditional written contracts, case law is still developing to establish clear precedent.
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Rudchenko 

O.D., Student, second course
Faculty of International Trade and Law,
Kyiv National University of Trade and Economics, Kyiv
 
FEATURES OF CONCLUSION OF ELECTRONIC CONTRACTS 

The rapid development and diffusion of new information and


communication technologies has a growing impact on politics, economics,
science and other spheres of life. The Internet has replaced all other means of
communication. Today, businesses are switching to online mode, allowing
doses to increase the flow of customers, work independently of the time of
day and tell about themselves around the world. Therefore, individuals and
businesses create websites, online stores. An important element of this
process is the state regulation of electronic commerce, in particular the
conclusion of electronic contracts.
According to item 5 of part 1 of Article 3 of the Law of Ukraine
on Electronic Commerce, an electronic contract is an agreement of two or
more parties, aimed at establishing, changing or terminating civil rights
and obligations, and executed in electronic form [1].
The second paragraph of part 2 of Article 639 of the Civil Code of
Ukraine stipulates that a contract concluded by means of information and
telecommunication systems with the consent of both parties is considered to
be concluded in writing [2].
According to part 1 of Article 181 of the Economic Code of Ukraine, an
economic agreement usually exists in the form of a single document
signed by the parties [3]. It is allowed to conclude business contracts in a
simplified form by exchanging letters, faxes, telegrams, telephones and other
electronic communication means, as well as by confirming acceptance of an
order, unless the law establishes special rules for the forms and procedure for
concluding this type of contracts.
The purpose of the signing is to agree on the need to identify the
signatory, confirm the consent of the signatory to the terms of the contract, as
well as confirm the integrity of the data in electronic form. 
According to part 2 of Article 1 of the Law of Ukraine "On
E- Commerce", the moment of signing the electronic legal agreement is the
use of:
1) electronic signature (in accordance with the item 12 of part 1 of
Article 1 of the Law of Ukraine "On Electronic Confidential
Services" electronic signature - electronic data that is added by the signer to
other electronic data or logically linked to and used as a signature) [4];  
2) electronic signature with a one-time identifier defined by this Law;
3) the analogue of the handwritten signature (facsimile reproduction of
the signature by means of mechanical or other copying, another analogue of
the handwritten signature) with the written consent of the parties, which must
contain samples of the corresponding analogues of the handwritten
signature in [1].
The scope of application of the Law of Ukraine "On E-Commerce" is
important. According to item 2 of Article 1 an electronic contract cannot
be concluded when:  
- the law establishes a special procedure for the transfer of property
rights or the object of the transaction is objects that have been removed
from civil circulation or restricted in civil turnover in accordance with the
law;
- one of the parties is a natural person who is not registered as an
individual entrepreneur and sells or offers for sale goods, performs
goods, services using information and telecommunication systems, unless the
parties have explicitly agreed to apply the provisions of this Law to the
transaction;
- the party to the transaction is a state authority, because it is a local
government body;
- the transaction is subject to a notarial certificate or state registration;
- committing a transaction regulates family relationships;
- the right relates to gambling or lotteries other than monetary lotteries;
- the fulfillment of the obligation is secured by the person who has
entered into the contract of surety or other form of property security,
provided that such person acts for purposes beyond the scope of his economic
activity or independent professional activity [1].
However, it is important that the electronic contract includes all the
essential conditions for the relevant type of contract, otherwise it may be
declared not concluded or invalid, due to the failure to comply with the
written form by direct instruction of the Law.
With this in mind, the lawyer provides the following tips to reduce the
risk of contesting an e-contract:
- before signing an electronic agreement with another party to lead an
active conversation, which will help create the evidence base when contesting
the contract or declaring it invalid in court and confirm the validity of the
intentions of the parties.
- to check for compliance with the requirements of special legislation on
electronic offers and acceptances, commercial electronic communications;
- before signing the contract, check the availability of information about
the seller: the name, its location and the procedure for accepting the claim;
- to specify in the contract e-mail addresses created in the domains of the
parties;
- to confirm the fact that the information has been provided in writing or
by email.
- to send a scanned copy of the contract by e-mail to the manager
indicating the name, position, company name [5].
Therefore, it is preferable to conclude an agreement in electronic or
traditional writing - it is personal for everyone, but it should be
remembered that in legal terms such contracts will be equivalent. Despite the
legislator's determination on the legal nature of electronic contracts, case law
is still in the making. So, in order to become a fully-fledged and perfect
instrument, electronic treaties need time to put them into practice and form a
single and permanent legal position for the Supreme Court. 
Literature:
1. Про електронну комерцію: Закон України від 03.09.2015 №675-
VIII Верховна Рада України. URL:
https://zakon.rada.gov.ua/laws/show/675-19/
2. Цивільний кодекс України від 16.01.2003 № 435-IV URL:
http://zakon2.rada.gov.ua/laws/show/435-15/conv/page
3. Господарський кодекс України від 16.01.2003 № 436-IV URL:
http://zakon2.rada.gov.ua/laws/436-15
4. Про електронні довірчі послуги: Закон України від 05.10.2017
№2155-VIII Верховна Рада України. URL:
https://zakon.rada.gov.ua/laws/show/2155-19
5. Електронний договір: що це таке та з чим його їдять? URL:
https://www.olans.com.ua/electronic-contract
 
Scientific supervisor: Candidate of Sciences (Law), Associate
professor of the department of international private, commercial and
civil law KNTEU Ilchenko G.A.              

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