Question

In January 2020, Freddie and Brian were negotiating via email for the sale and purchase of a shipment of sporting equipment. Both parties had confirmed that all business would be conducted through their respective email addresses. Freddie sent a final offer to Brian’s email address on 21 January 2020 stating that the offer would close at 5pm on 23 January 2020. Freddie received no reply from Brian and on 25 January 2020 sold the equipment to another customer. Brian emailed Freddie on 28 January 2020 accepting the offer and apologising for the delay explaining that he had been out of the office at the Adelaide Tour Down Under and had not seen the offer. Freddie explains that he has already sold the shipment to another customer. Brian replies that he has no right to do so. (a) Identify the legal issues raised by these circumstances according to the provisions of the Electronic Transactions Act 1999 (Cth). (b) Did Freddie behave illegally? Would your answer be different if the parties had not confirmed that all businesses would be conducted through their respective email addresses?

Answer 1

Answer -:

(a) As per legal requirements of electronic transactions act 1999 folloing will be legal issues raised by the above circumstances.

1) validity of electronic transaction.

2) Requirement to give information in writing.

3) Requirement of signature

4) requirement to produce a document.

5) integrity of information.

(b) in the current scenario freddie did not behave illegally and he was on right track beacause he have communicated in the email saying the offer expiry date also i.e. 5pm on 23 jan 2020. since brian responded lately i.e. on 28th so freddie is relieved to bind on contract as stated in the email it stands expired.

so freddie will not be liable to contract  

if the parties have not confirmed that businees would be cnducted through email then it would be different i.e. we should again think whether electronic transaction act is applicable or not as the email involvment is not there and act according to the other act as applicable.