Online Contracts the Good, the Bad, and the Solutions to Prevent the Ugly Editorial

lDanny Ortiz

BUSN 5810

Danny Ortiz

BUSN 5810

Online contracts

The Good, the Bad, and the Solutions to Prevent the Ugly

Online contracts

The Good, the Bad, and the Solutions to Prevent the Ugly

In any contract there are three elements that are absolutely paramount in order to ensure that an agreement has been made: an offer, an acceptance, and consideration. At first glance, this seems simple, right? A party, most often referred to as a Seller, submits and offer. Another party, whom can otherwise be referred to as a Buyer, accepts the offer as is or negotiates the terms of the offer. Finally, a consideration, or an exchange of something of value to both parties. In the end, an agreement is made, both parties commit to and perform their portions of the agreement, one or the other gets “paid” in some form or fashion, and everyone walks away happy. Well, if it were this simple there wouldn’t be a need for a contract.

When we look deeper, we find that contracts can get complicated, most often due to one party or the other not performing. Now throw into the mix that over the past twenty plus years, more and more contracts are being done online over the internet. This one little variable, the internet, which allows for exchanges of global proportions, can either complicate contracts or facilitate them. And while there are myriad potential issues to consider, this editorial focuses on three that can either expedite the process of online contracts or prove to be burdensome for Buyers and Sellers alike: Digital Signatures, Intelligent Agents, and the Concept of Mutual Assent. While it should come as no surprise that the internet, in most cases, has facilitated the formation and execution of contracts, more must be done in the way of contract law to ensure the validity of digital signatures, authority of intelligent agents, and that the concept mutual assent has been properly met. Moreover, and interestingly enough, these issues seem to be held together...