Recently, a case has come up before the Plymouth
Supreme Court ( Shattuck v. Klotzbach) concerning the legal validity of
a series of e-mails exchanged between a prospective buyer and a seller
of a property which the seller tried to repudiate later.
At the pre-trial stage the judge has given wieghtage to the
e-mails as if they were written communication though not specifically signed
in the traditional way. The mails however contained the names of the persons
typewritten and whether this itself constitutes a "Signature" is a
matter which will be further discussed when the case is further heard in
detail.
Also, an issue of debate is whether the series of e-mails
indicating the intentions of the parties concerned could be construed as a
binding legal contract.
Ever since the Information Technology Act-2000 became
effective in India, users of E-mail in India have been concerned with the legal status of
E-Mails.
Section 4 of the ITA-2000 states that
"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 requirement shall be
deemed to have been satisfied if such information or matter is rendered or
made available in an electronic form; and accessible so as to be usable for a
subsequent reference"
Similarly, Section 5 States that
"Where any law provides that information or any other
matter shall be authenticated by affixing the signature or any document should
be signed or bear the signature of any person then, notwithstanding anything
contained in such law, such requirement shall be deemed to have been
satisfied, if such information or matter is authenticated by means of digital
signature affixed in such manner as may be prescribed by the Central
Government."
The implication of the above two sections is that a
document in electronic format is equivalent to a written document. However, a
"Signed Written Document" can be equated only with a Digitally signed
electronic document only.
However, in as much as "Oral Contracts" are valid in law,
contracts entered into through other means also have validity if the terms of
contract can be proved in a court of law.
The amendments made to the Indian evidence Act along with
the passage of ITA-2000 has clearly provided a "Legal Status" to electronic
documents along with "Oral" and "Written" from of evidence. Such electronic
documents can further be secured by digital signature but can be proved
otherwise also.
Hence even in India, it is possible to conclude that
e-mails can create contractual obligations provided they can be proved to the
satisfaction of the court as to its contents and attribution.
Naavi
March 25, 2002
Related Article:
Can e-mail seal a sales deal?
Your Views
can be sent here