[Hague-jur-commercial-law] Business Endorses UN Convention on Electronic Contracting

[Manon Ress]

July 11, 2006
Business Endorses UN Convention on Electronic Contracting
The global business community has endorsed the recently concluded =20
United Nations Convention on the Use of Electronic Communications in =20
International Contracts.  The International Chamber of Commerce =20
(ICC), part of USCIB=92s global network, views the treaty as a useful =20=

reform to spur development of cross-border online commerce in the =20
developed and developing world.
The convention, which is open for signature by UN member states until =20=

January 16, 2008, was a focus of the 39th session of the UN =20
Commission on International Trade Law (UNCITRAL), held in New York =20
from June 18 to July 7.

Electronically-negotiated contracts are as valid and binding as paper-=20=

based versions.
Speaking on behalf of ICC at a special event organized around the =20
launch of the treaty, USCIB Executive Vice President Ronnie Goldberg =20
called the convention =93a sign of, and a vehicle for, the increasing =20=

legal recognition of electronic contracting, particularly in =20
developing countries.=94  She said the global business community hoped =20=

it would spur the development of cross-border e- commerce.
ICC participated in the drafting of the convention by furnishing =20
expert input and sharing business experiences on electronic =20
transactions. ICC also published its ICC eTerms 2004 as a self-=20
regulatory complement to the convention.  ICC eTerms 2004 are a set =20
of articles which parties can incorporate into the document that make =20=

it clear they intend to agree to a binding electronic contract.
The convention requires signatory countries to recognize the legal =20
validity of electronic communications used in contracts, and also =20
supports the principle of party autonomy in electronic contracting. =20
It contains provisions dealing with issues that commonly arise in =20
electronic agreements, such as location of the parties, information =20
and form requirements, time and place of dispatch and receipt of =20
electronic communications, invitations to make offers, and errors.
Speaking on the first day of the UNCITRAL session, Christopher Kuner, =20=

one of the leaders of the ICC expert group, said: "We welcome the =20
enhanced legal certainty and support for party autonomy which the =20
convention provides. It supplies the legal foundation for self-=20
regulatory instruments, such as ICC eTerms 2004.  The other good news =20=

is that it allows for electronic communications to satisfy the =20
requirements of other conventions, without the need for those =20
conventions to be re-negotiated."
In addition, the UNCITRAL agreement allows electronic communications =20
to satisfy the requirements of other international conventions. As a =20
result, companies and traders around the globe will get important =20
reassurance from the convention that electronically-negotiated =20
contracts are as valid and binding as paper-based versions.
"This convention has a number of articles that strengthen the legal =20
validity of electronic transactions, particularly in developing =20
countries and will help boost e-commerce in those developing =20
countries which ratify it," Mr. Kuner said.
Staff contact: Heather Shaw
Ms. Goldberg=92s comments at the UNCITRAL event
More on USCIB=92s Information Policy Committee
More on ICC=92s eTerms 2004
UNCITRAL website

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Manon Anne Ress
manon.ress@cptech.org,
www.cptech.org

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