Friday 23 March 2007

Enforceability of Online Contracts

Now that online contracts have become commonplace in the the digital West (formerly, The West), it may be well to examine the extent to which the same degree of development in this country, if only to assess the extent to which digital contract making is possible.

The availment of the benefits of online contract making has been attested to by the Filipino online consumer's use of such sites as Ebay, ostensibly to purchase goods. Anecdotal evidence suggests that most online retail stores do deliver. However, the test of most laws lies in the cases where there is breach. There lies the rub. What if the online stores do not deliver?

Initially, subject matter jurisdiction could most probably not be exercised by Philippine Courts. Most online stores are almost entirely based in foreign jurisdictions and maintain no offices here, upon whom summon could be served. Neither can the notion of "doing business" be applied, absent registration. So the remedy would essentially lie in filing a suit within the foreign corporation's domicile. That would definitely entail cost.

Assuming that a suit is filed for specific performace, the Philippine system has been kind enough to enact the rules on electronic evidence, ostensibly to give to online documents the same probative value as ordinary, paper-based documents. All that remains now is the Philippine Court's appreciation of such evidence.

That might be asking a lot.

by nestor gadrinab

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