Distance Selling

E-commerce is expected to reach billions of dollars by 2002. The benefits of e-commerce international trade are vast. However, it is important that legal aspects of setting up a website and contracting on line are understood and complied with before e-business is established.

Trading on the Internet is in essence no different to trading using the more conventional means. The greatest difficulties are caused by the fact that almost no e-commerce is domestic. By definition, the use of the Internet raises question of application of overseas laws and the even harder question of how any conflicts between these various national laws will be resolved. Each country has its own set of private international laws that seeks to resolve such conflicts. Presently the private international laws are largely unharmonised and for the foreseeable future there is unlikely to be law of cyberspace.

It is as a result important that those intending to contract on the Internet or is doing so take in account pre-contract considerations.

Advertising and Marketing

When setting up a website ensure that the advertising used complies with the rules applying to the relevant jurisdictions.
Ensure that the advertisement does not constitute a unilateral contract or standing offer that can bind you the seller without any further action on your part.
Make no misrepresentations in connection with your services or goods that would induce the purchaser to enter into the contract.
There is no unanimity as to which law governs advertising and marketing on the Internet.

Pre-Contract liability

Try to ensure that by entering into negotiations you will not become liable for the other party's expenses should you decide not to proceed to a concluded contract.

Find out who is your Customer

Reject a customer if the address is within a vetoed country
Ascertain the purchaser's place of incorporation to consider whether you wish to trade it.
Limit the jurisdiction in which you wish to trade

Contracting online

Ensure all the terms of contract are clearly agreed as you would in normal circumstances.
Ensure that your standard terms and conditions are incorporated into individual contract.
Get the purchaser to acknowledge acceptance of your electronic terms.
Ensure these appear early on in the website making the purchaser read them and appear on the Offer, which the purchaser refers to and accepts.
The purchaser should have no means of altering the terms but to accept them.
Tell the purchaser what constitutes acceptance of the Offer.

Applicable Law

Ensure the standard terms have the law and jurisdiction applicable clearly stated and incorporated into the contract.
Ensure compliance with relevant laws of distance selling

NITA KING
HEAD OF COMMERCIAL LITIGATION
LEMON & CO

This article gives a general overview only and cannot be relied upon in any particular case. It does not constitute legal advice. Specific legal advice must always be considered.

For further information contact Nita King at Lemon & Co, Solicitors on 01793 527141 alternatively by email on
nita.king@lemon-co.co.uk

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				E-commerce is expected to reach billions of dollars by 2002. The benefits of e-commerce international trade are vast. However, it is important that legal aspects of setting up a website and contracting on line are understood and complied with before e-business is established...</p>

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