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ARTICLE · 10 JANUARY 2007

Buying Online – Some Practical Issues For Buyers

Most companies now trade online so it is important that buyers understand their legal position. Online contracts may be created in a number of ways but generally they are carried out by email exchange or via a supplier’s website.

United KingdomMedia, Telecoms, IT, Entertainment
Paula James
Paula James

Most companies now trade online so it is important that buyers understand their legal position. Online contracts may be created in a number of ways but generally they are carried out by email exchange or via a supplier’s website.

The first question which may come to mind is whether a contract can be formed electronically without being confirmed in writing. English contract law is flexible in this area in that, save for a few exceptions, there is no requirement for a contract to be in writing and so contracts may be formed electronically. The Electronic Communications Act 2000 allows electronic signatures to be legally admissible as evidence of the reliability of a contract.

Now we know a contract is capable of being created online, a buyer should understand the point at which the contract becomes binding. English law distinguishes between an offer and an "invitation to treat" and the difference can have significant practical implications for the purchasing process. An offer

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