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E-commerce Law Incorporation of terms into an offer
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Incorporation of Terms Normal contractual principles will apply to the Incorporation of terms. All terms of the offer need to be communicated before acceptance is made. There are many cases that deal with the incorporation of terms – most deal with exclusion clauses.
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Incorporation of terms Contracts created via email Contracts created via the Internet
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Incorporation of Terms On a written contracts this is simple L’Estrange v Graucob [1934] 2 KB 394 Where the contracts are not in writing, there are more problems.
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Incorporation of Terms If the contract is not in writing then the incorporation of the terms depend upon notice. Notice must be given before the offer is accepted.
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Incorporation of Terms The terms cannot be on a receipt or invoice Chapelton v Barry UDC [1940] 1 KB 532 Hollier v Rambler Motors [1972] 2 QB 71 (unless there is a course of dealings)
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Incorporation of terms If there is a sign then the sign must be visible before acceptance Olley v Marlborough Court [1949] 1 KB 532 This is more similar to a contract created via the Internet.
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Incorporation of terms Reasonable steps must be taken to bring the terms to the notice of the offeree/offeror Parker v SE Railway (1877) 2CPD 416 Thompson v London Rly Co. [1930] 1 KB 41
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The Incorporation of terms into an offer How can this be effected? On a website there must be some visible link to the terms before acceptance or a check box to confirm incorporation.
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Written Terms They may just be a link somewhere to the terms of the contract on the webpage. www.amazon.co.uk
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Incorporation of terms By email there must be some mention of the terms and conditions
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Incorporation of terms Certain terms and details need to be inserted into certain contracts on the internet. cf Consumer Protection examples
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Consideration NB a valid contract needs consideration We will deal with consideration in detail separately.
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Performance NB a Contract is not completed until it has been performed
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Summary Electronic contracts can be created either: Via electronic communication, e.g. email. Via the Internet
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