Digitally bound: Can email negotiations be legally binding?

With email communication becoming the most commonly used means by parties to negotiate commercial and other agreements, it is important that everyone who communicates electronically is aware of potential legal implications of doing so.

Those of us who use email as part of business negotiations and transactions should take note of recent Australian cases where courts have held that negotiations via email created binding agreements, despite the lack of a formal agreement. These cases suggest an increasing trend in the willingness of Australian courts to find legally binding agreements in email correspondence. This article provides a summary of the rulings in those cases and some practical tips to keep in mind when engaging in commercial negotiations by email.