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Web-Based Contract Law: Principles and Challenges in Online Contracting

Learn the general principles of contract law and how they apply to online contracting. Explore the mixture of common law and code law, the Uniform Commercial Code, and the requirements for a binding agreement. Understand the challenges of contracting online and the legal updates that have been put in place to enforce online contracts.

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Web-Based Contract Law: Principles and Challenges in Online Contracting

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  1. CS 4339/5339Web-Based SystemsContract Law

  2. General Contracting Principles • Mixture of common law and code law • Uniform Commercial Code (model law) • Many parts are left to each state’s common law

  3. Contract Form • Binding agreement enforceable in court • Must a contract be written and signed by all parties? • Why are written contracts better? • Proof • Terms • Precision • Clarity

  4. Requirements • Legal ability to enter contract • Don’t violate laws or ethical principles • Mutual assent (offer and acceptance)

  5. Form of offer • Offeror, offeree • Offeree: accept, reject, counteroffer • Offer expiration • What communications constitute an offer? • Carlill v. Carbolic Smoke Ball Company (1892) • Leonard v. Pepsico, Inc. (1999)

  6. Form of acceptance • “You have 24 hours to accept or reject this offer. If you do not respond, it is implied that you accept the offer.”? • No legal obligation to respond to an offer. • Mailbox rule • Can be modified by offerer • Applies to acceptance, not offer • Consideration

  7. Performance • Fulfillment of promises • Breach of contract • Remedies • Money damage • Specific performance • Contract rescission • Contract reformation

  8. Repudiation • Deny contract existence or refusal to perform • Options • Agree to cancel contract • Wait and see • Sue for breach of contract • Signature repudiation

  9. Contracting online • Basically the same contract law • Challenges: • Contracting parties may not know each other • May not be able to negociate contract • Contracting through exchange of multiple e-mails • Legal updates: • Uniform Electronic Transactions Act (UETA) • Electronic Signatures in Global and National Commerce (E-SIGN)

  10. Children • Children’s Online Privacy Protection Act (COPPA) • Require parental consent before collecting personal information

  11. Forms of online contracts • E-mail • Texting • Social Networking site Enforcement: • Authenticity • Non-Repudiation • Digital signature • Digitized signature • Electronic signature • EULA

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