E-Contracts: Formation, Legality, and Consumer Protection

E-Contracts 1
E-Contracts
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E-Contracts 2
What is E-contracts- commerce / Formation of the E contracts / The legality of the E-
contracts
The internet has without a doubt revolutionized the approach that used to be taken while
addressing business transactions. One aspect that it has completely eliminated is the need for
physical presence. Concurrently, this has helped to hasten the speed of doing business. When
people can’t be at the same location when a transaction is underway, then the contract becomes
the legally binding entity that helps to ensure that all parties to the agreement are able to fulfill
their part. E-contracts are created by a computer software that generates an electronic document
that can be electronically signed. Distance contracts can also be regarded to as e-contracts since
they are also associated with delivery of goods between different parties1.
The approach of forming an e-contract has never been agreed upon by stakeholders for
the longest time. This has been due to the different approaches that are normally taken to form e-
contracts, and the different principles with which they are associated. The primary approaches
taken to conclude e-contracts include use of email attachments, network exchange through an
EDI, and ordering for goods that have ben posted on a website. The existence of a contract is
normally verified when certain terms are proposed by the supplier, and the consumer accepts.
Acceptance of the terms has to be relayed to the offeror so that the contract can be actived.
For an E-contract to be permissible under the law, there should be a way of authentication
it. This is normally achieved through the presence of an electronic signature being appended on
the electronic document. According to Law 15 of 2004, and e-signature may be a signal, letter,
sign, number or any unique shape that can be used to identify a person. An E-signature can only
be authenticated if it fulfills the following conditions as stipulated under Article 18 of the
previously mentioned law;
1) It should be uniquely associated with only one person and shouldn’t resemble any other
signature so as to avoid any forms of confusion.
2) It should be very clear and follow a specific pattern so that it is easy to note alterations
that have been made to it.
3) The signatories will remain dominants on the meaning of the signature.
1 Jebur, H., Gheysari, H. and Roghanian, P., 2012. E-commerce reality and controversial
issue. International journal of fundamental psychology & social sciences, 2(4), pp.74-79.

E-Contracts 3
How can law generally provides a Consumer protection in E-contracts? And in Kuwait??
Protection of consumers has become a hurdle in the world created by the internet. This is
because of how transactions are conducted between people in different nations. Therefore, no
particular law can be used to provide redress incase one the parties decides to violate the e-
contract. Therefore, it is crucial that consumers in the online realm are protected because of the
following reasons;
1) Protecting consumers will help to ensure that the transactions they undertake are
protected.
2) It will help to eliminate ambiguity rates and the great risks that are associated with online
transactions. It will help to eliminate unexpected failures in the market.
3) It will help to secure the interests of consumers when formulating legislations that are
designed to protect online transactions generally.
The most appropriate approach in tacking the issue at hand would be most probably
through offering a platform that can be used to tackle redress. This would be suitable approach
since the increased rates of online transactions and associated complaints will allow
improvements to be made to such a platform until it is refined. Dispute resolution approaches
would be appropriate towards ensuring consumer protection in the online environment.
Regulators view this approach as being highly suitable since it allows the interests of consumers
to be treated in a more consistent manner2. Protection that is offered by the government is also
considered a safe haven, and most consumers are usually willing cases of contract violation to
courts. So as to avoid straying away very much from traditional consumer protection concepts,
and at the same time accommodate new business concepts, application of ADR mechanisms
could be used. This support mechanisms can be offered by states in enforcing support for
consumer protection. Countries can also start by subscribing to cross border e-commerce
protection policies so as to create a baseline for prosecution incase e-contracts are violated3.
2 Peterson, J.E., 2012. The GCC states: Participation, opposition, and the fraying of the social contract.
3 Gao, F., 2004. The e-commerce legal environment in china: status quo and issues. Temp. Int'l & Comp.
LJ, 18, p.51.