Is a contract sent and "signed" by email enforceable?

Is a contract sent and "signed" by email...

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I still rely on letter post to ensure that I get a contract returned with an actual signature, as opposed to a typed one. In these times of e-mail, have there been any advancements on the need for an actual hand written signature on an enforceable contract? It would sure be handy to do it all by email.
Nicki Ross Martin

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By AnonymousUser
28th Sep 2002 03:47

Independent certification is necessary!

Nicki,

For digital signatures or other related certificates to be admissible, it must be certified by any persons (before or after making of the communications) confirming that:

1) the signature,
2) a means of producing, communicating or verifying the signature, or
3) a procedure applied to the signature,

is a valid means of establishing the authenticity of the document.

The reference for this is at the link below:

Electronic signatures and related certificates

The question now arises as to how does one confirm the three requirements outlined above? The answer may be by an email. If this is so then yet another certificate is required to confirm the authenticity of the email. So it is a virtuous circle which is best resolved using the services of our friendly postmaster!

It all depends on how critical the contract is. If it were a standard Letter of Engagement then I would rely on it being returned to me either via an email attachment or faxed. If there is a dispute then I am prepared to lose this unscrupulous client. Maximum damage to me? PEANUTS. Don't forget, at court of law, you are entitled to claim Fees for actual work done. You don't normally get problems with standard services. For Institute requirement, I don't think they are bothered whether the document is original, photo copied, faxed or emailed. You just need a signed letter for permanent files!

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By AnonymousUser
27th Sep 2002 15:12

written contract
As far as I am aware, although a contract does not have to be in writing (other than a deed), if you want the one in writing to stand up there needs to be evidence that it has been signed.

The Electronic Communications Act 2000 deals with the subject of electronic signatures, specifically in Part II s.7.

Two terms are used those of 'electronic signature' and 'advanced electronic signature'. An electronic signature may be a digital image of a person's signature which has been scanned and is reproduced at the end of a document. Advanced electronic signature's will require some form of encryption.

That's the basic's. Hope it helps...

Rebecca Seeley Harris

Author of the Employment Status Guide
Website: Seeley (Legal) Solutions

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By AnonymousUser
27th Sep 2002 05:30

Email denial
Neil, your advice sought here, please. What if one of the parties to a contract by email denies having sent that email?

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By AnonymousUser
27th Sep 2002 08:50

Denial
Loh

In extremis it is usually possible to resurrect files on a computer so it should be possible to prove whether or not an email has been sent or, for that matter, received. I imagine that this would be your evidence if you went to court.

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By neileg
27th Sep 2002 09:18

Proof
Yes, exactly.

When you receive an e-mail, you can examine the header to see where it originated. Perhaps the mail service provide will be able to substantiate the veraccity of these details.

But, there are plenty of ways that an e-mail address can be spoofed, ie make it appear that it came from a different address from the true address. Therefore, the use of e-mail to evidience a contract is open to challenge.

The Kodak case revolved around a secure on-line connection, not e-mail.

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By AnonymousUser
27th Sep 2002 10:22

Further points to ponder
Thanks Michael, your point noted. But what if the past emails retrieved to show "proof" has actually been altered? Or the PC server/PC H/disk got corrupted or hacked? In this case, no data to support our case.

Proof to substantiate your claims is important. But where and how can we get them when emails can be spoofed. Rather we shall take the case of an offer being "accepted" by a culprit (not genuine buyer) who hacked into the offeree's PC/Server. I am sure we have heard of email providers' website being hacked and in the end they closed down.

I wonder how Amazon.com verifies the purchases concluded via internet are genuine or not. What if consideration made via credit card has been denied by the purported buyer later?

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By AnonymousUser
27th Sep 2002 11:15

What indeed?
If you send me a paper contract to sign how do you/I prove that I did actually sign it or that my signature was forged? How do you prove that a verbal contract exists ("A verbal contract is not worth the paper it's written on")?

There are always going to be problems of this nature whatever the medium and one cannot assume that everyone is always going to be honest and upright. This is why we have laws and lengthy court procedures.

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By Abacjm
24th Sep 2002 18:12

E-mail contracts
Noth that lng ago there was a case where a business (Kodak - I think) offered a deal by email on a camera and it was seized on by avid "best deal getters" who booked one at an amazingly low price. Kodak later discovered that the price was an error but court held that as they had acknowledged the order by email a contract had taken place which was binding on both sides.

Maybe as a further safeguard potential contracts could have a verifiable digital signature such as is requierd by e-filers on that I/R web filing site!!

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By AnonymousUser
25th Sep 2002 09:45

I'm no lawyer...
...but my understanding is that to have a contract one only needs offer, acceptance, consideration and intention to contract.

A verbal contract is, in theory, just as binding as one signed in blood and e-mails are far less ephemeral than spoken words. So I don't see why one cannot have a contract agreed by e-mail.

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By neileg
25th Sep 2002 10:20

I agree with Michael
A contract does not have to be in writing unless it is for land. So you could regard an e-mail as a memorandum of a verbal contract, pehaps.

It used to be the case that only a telex was an acceptable alternative to a formal written document. I remember some talk about faxes being considered in a similar vein, but I don't know if this made its way into practical law.

The bottom line is that if both parties to a contract agree that the contract is contained in one or more e-mails, then it is. But how do you prove that both parties agree to this? By e-mail.

That's Catch 22!

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