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Formation of Contracts via the Internet

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Eurasian Economic Perspectives

Part of the book series: Eurasian Studies in Business and Economics ((EBES,volume 12/1))

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Abstract

The ability of sellers and suppliers to communicate with customers has prospered with the increase in communication methods, especially the wide usage of the Internet. Sellers and suppliers are intensely benefiting from the opportunities created by information technologies for marketing their goods and services to targeted customers. Buyers can easily attain goods or services produced anywhere and save time by quickly purchasing them through the Internet, while staying at home or office. However, contracting by electronic communication causes new challenges to the traditional legal principles of contract formation that are essentially based on oral or old fashioned paper contracts. This chapter presents the legal framework of electronic contracting from a comparative law perspective and focuses on some specific issues, which are subject to discussion among legal scholars, like the legal aspects of electronic contracting methods, communication of assent in digital environment, and the legal effects of displays in online shops. In conclusion, a critical review is presented of the discussions about instantaneousness of e-mail communication, viewpoints that are in favor of nonbinding legal effects of the displays in online shops and necessity of the concept of “electronic agent.”

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Notes

  1. 1.

    Formation of such contracts, which may legally be required to comply with specific (offline) formal requisites, has been exempted from the scope of the EC E-Commerce Directive by Article 9 (2).

  2. 2.

    To make this view consistent with the “presumption of standing general offer” provisions of Swiss OR Article 7 (3) and Turkish CO Article 8 (2), it has been asserted that these provisions regard the display of physical goods themselves only, not of their pictures or films (Gezder 2004; Oğuzman and Öz 2018). For the contrary view see Antalya (2016).

  3. 3.

    It is important to note a significant difference between Swiss OR Article 7 and Turkish CO Article 8. In Swiss OR Article 7 (3), only display of goods with price marks is considered as a basis for the presumption of (standing general) offer. OR Article 7 (2), in contrast, states that sending of tariffs, price lists, etc. does not constitute offer. On the other hand, in Turkish CO Article 8 (2), there are two legal presumptions: beside display of goods with price marks (the presumption of standing general offer); sending of tariffs, price lists, or suchlike is also deemed to be offer, unless otherwise understood clearly and definitely.

  4. 4.

    In common law, in contrast to civil law system, an offer can be revoked by the offeror at any time prior to its acceptance (see Restatement [Second] of Contracts § 42), provided that the revocation is communicated to the offeree before the acceptance takes effect.

  5. 5.

    For a contrary view, see Mik (2016) who argues that, in such cases, the message should be treated as if received only if the terminating device malfunctions due to fault of the addressee. It does not seem proper to think that the sender should undertake the risks caused by malfunction or inadequacy of the mail server or e-mail client benefited by the recipient. An exception may be invoked if the sender already knows or has reason to know the impediment in question. Due to the principle of good faith, another exception could be thought of if the sender is immediately informed of the ‘transmission failure’ either by an undelivered message report or directly by the addressee.

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  1. School of Law, Istanbul Medipol University, Istanbul, Turkey

    Doruk Utku

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  1. Faculty of Political Sciences, Istanbul Medeniyet University, Istanbul, Turkey

    Mehmet Huseyin Bilgin

  2. MUFG Union Bank, San Francisco, CA, USA

    Hakan Danis

  3. Faculty of Economics, Istanbul University, Fatih, Istanbul, Turkey

    Gökhan Karabulut

  4. Faculty of Political Sciences, Istanbul Medeniyet University, Istanbul, Turkey

    Giray Gözgor

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Utku, D. (2020). Formation of Contracts via the Internet. In: Bilgin, M., Danis, H., Karabulut, G., Gözgor, G. (eds) Eurasian Economic Perspectives. Eurasian Studies in Business and Economics, vol 12/1. Springer, Cham. https://doi.org/10.1007/978-3-030-35040-6_18

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