E-Commerce

The e-commerce idea came when business companies and

organisations wanted to send commercial documents
electronically during 1970s.

In mid 90s the idea became very popular and different

countries wanted adopt legislations to promote e-commerce.
Then the United Nations called upon its member nations to
come up with a legislations called UNCITRAL Model Law on
Electronic Commerce.
What is the full form of UNCITRAL? And
what are the usage of this UNCITRAL model
law on e-commerce?
 Electronic Commerce.
The meaning of commerce: in basic term buying and selling.
“...e-Commerce is more than just purchasing and offering things
over the Internet like through Bikory and OLXbd. E-commerce
is a wider term encompassing electronic trade of business;
and information between computers of two or more
organizations. The innovative objective of e-Commerce is to
coordinate businesses and government agencies, with the
capability to correspond with each other through any
computer platform.”
But broadly according Wold Trade Organisation e- commerce
means: “production, distribution, marketing, selling and
expedition of goods and services by using of electronically
measures.”
Can anyone tell us what would
be the example of e-commerce?
• Internet banking;
• Initially e-commerce depends on both computer and
internet but now Mobile banking taking a huge space here.
• Online shopping.etc.
Anything else???
But how about “electronic”?

Here what are “the means” of

electronic?
It is not limited to internet but it could be through mobile &
…
 B2B
 B2C
 B2G
 C2C.
Examples?
 B2B: Alibaba.com
 B2C: Amazon, eBay.
 B2G: Paying tax, filling report, selling goods to Govt.
 C2C: Mudah.com

 There are also G2C, G2B, etc.

What are the benefits of e-commerce?

• It is available 24*7.
• It drastically reduces transaction time.
• It reduces cost in many different ways.
• In terms of goods; you get the item at cheaper price
(because there is an easy way to compare the products).
• Regardless the jurisdiction, the products/service are
available everywhere.
• Thus it brings the entire world in same distance.
• The anonymity aspect is very revolutionary.
How the ICT is supporting e-
commerce?
• By legalizing e-mail.
• By protecting digital signature.
• Digital records.
• By protecting digital signature authority and many more.
ICT 2006:
6. Legal recognition of electronic records.--Where any law provides that
information or any other matter shall be in writing or in the typewritten
or printed form, then, notwithstanding anything contained in such law,
such information or matter is rendered or made available in an electronic
form:
Provided that such information or matter is accessible so as to be usable
for a subsequent reference.
If there is any legal issues in e-
commerce and cyber law, what
legislations would you look for?
• Consumer Rights Protection Act, 2009.
• The Information and Communication Technology Act, 2006.
• UNCITRAL (United Nations Commission on International
Trade Law) Model Law on Electronic Commerce (1996).
If we compare with India, they have:
Information Technology Act 2000
UNCITRAL Model Law on Electronic Commerce (1996)
UNCITRAL Model Law on Electronic Signatures (2001).
This UNCITRAL does not have any legal force but
• merely serves as a model to countries for the evaluation and
modernize of certain aspects of their laws and practices in
the field of communication involving the use of
computerized or other modern techniques.
• establish relevant legislation where none exists.
- Bangladesh Law Commission.
What are the differences
between Contract and Online
Contract?

What elements do you need to

check in order to identify a valid
contract?
 THE CONTRACT ACT, 1872
10. All agreements are contracts if they are made by the free consent of parties competent to contract, for a
lawful consideration and with a lawful object,
object and are not hereby expressly declared to be void.
11. Every person is competent to contract who is of the age of majority according to the law to which he is
subject, and who is of sound mind, and is not disqualified from contracting by any law to which he is
subject.
12. A person is said to be of sound mind for the purpose of making a contract if, at the time when he makes
it, he is capable of understanding it and of forming a rational judgment as to its effect upon his
interests.
13. Two or more persons are said to consent when they agree upon the same thing in the same sense.
14. Consent is said to be free when it is not caused by-
(1) coercion, as defined in section 15, or
(2) undue influence, as defined in section 16,or
(3) fraud, as defined in section 17, or
(4) misrepresentation, as defined in section 18, or
(5) mistake, subject to the provisions of sections 20, 21 and 22.
Consent is said to be so caused when it would not have been given but for the existence of such coercion,
undue influence, fraud, misrepresentation or mistake.
Online contract is a big part of e-commerce. Although there
is no direct mention of online contract in the ICT Act 2006.

Online contract means a binding agreement between two

parties where an offer has been made and accepted on
computers or computer system or computer network. If you
even make the contract using mobile device, the contract
will still be valid.
***Such contract is legally binding as much as physical
contract.
The basic checklist that a online contract is valid, there has
to be:
• Online communication/offer of proposal.
• Online acceptance of proposal.
• The above two has been expressed by the means of
electronic record or form.
• The said agreement made by free consent of the parties.
• The same has been made competent parties.
parties
• There has to lawful consideration.
• The agreement has to be for a lawful object.
object
 In physical contract normally a contract which is concluded
when both parties sign the document but in the context of online
contract there is not option to sign the document.

In that case when a contract is concluded?

The answer is “ it depends”.
Because it varies case to case.
In your opinion in which of these two typical scenarios, the
contract has been executed???
Scenario 1:
Suppose you are doing an online contract and it says that you
will receive an confirmation email.
Scenario 2:
In another case there is an option for “I accept”, where you
have to click.
In I.Lan Systems Inc. v. Netscout Service Level Corp 183 Supp 2d 328
(D. Mass. 2002);
2002)
it has been decided that parties are obliged to adhere to agreement
when the party clicked on an “I agree” button.
What are the Challenges in the
enforcement of e-contract?
 The Challenges in the enforcement of e-
contract.
Challenges to B2C
• Privacy and security.
• Quality.
• Hidden cost.
• Although it was supposed to be quick but there is delay in receiving goods.
• No direct interactions with the seller.
• The legality of the product.
• Jurisdiction.
• Identity.
• Terms and conditions are very strict which is risky to consumers.
• Tax.
Challenges to B2B
• Security Issue.
• Extra cost for e-commerce infrastructure.
• Extra cost for good bandwidth for internet service in order to
avoid network failure.
• Credit card facilities are needed.
• Cost for up to date application and software.
Mr. A, a person residing in America, provides an online service to the
consumers all over the world. If Mr. A commits an offence under the
ICT Act, 2006, then where can he be sued?
Inter-state application of the Act.--
If any person commits offence or contravention in Bangladesh under this Act
from outside Bangladesh using a computer, computer system or computer
network located in Bangladesh, then this Act shall apply as such the entire
process of the offence or contravention took place in Bangladesh;
If any person from within Bangladesh commits offence or contravention
outside of Bangladesh under this Act, then this Act shall apply against him as
such the entire process of the offence or contravention took place in
Bangladesh;
Mr. A, residing in Dhaka, publishes on his website in Chittagong
statements defamatory of B.
Where the proceedings should take place?
B may sue A either in Chittagong or in Dhaka.

THE CODE OF CIVIL PROCEDURE, 1908

19. Where a suit is for compensation for wrong done to the
person or to movable property, if the wrong was done within the
local limits of the jurisdiction of one Court and the defendant
resides, or carries on business, or personally works for gain,
within the local limits of the jurisdiction of another Court, the suit
may be instituted at the option of the plaintiff in either of the said
Courts.
Yahoo! France case.

“nazi memorabilia”
• Tips: Follow the slides and you are free to read any books
of your convenience.
• Please practice all the warming up examination questions
at least once.