Applicability of Conventional Contract Law Rules to Contracts Made Online : A Critical Analysis of Rules on Offer and Acceptance

Abstract

This research examines into the possibility of formulating legally valid and feasible contracts online, under the existing conventional rules of law of contract on offer and acceptance. The research is carried out in the context of e-commerce, electronic transactions and virtual markets. In an era where the customers don?t have to leave the comfort of their homes to shop and enter into ordinary contracts online, contract law plays a vital role. This role is largely different from its restrictive role in the conventional economy. In the absence of an exclusively dedicated set of laws/ rules applying to contracts made online, especially in terms of offer and acceptance, the paper evaluates critically, the existing conventional laws and rules governing contract law. This is a qualitative research primarily rooted in selected statutes in force, local and international, case law emanating from common law courts and courts of Sri Lanka. Secondary data such as commission reports, texts of authority and research studies have been used in seeking answers to the research problem. On a close scrutiny of online transactions and by applying the traditional and classical rules of law of contract, it becomes apparent that an online contract is in fact feasible within the existing framework. The paper discusses the possibility of extending the traditional contract law rules to incorporate and facilitate online contracts. It also explores the possibility of expanding such rules, with reference to local and international legislation, in order to address their shortcomings in application to online transactions, with a view to law reform. By way of a comparative analysis, reforms are suggested to Sri Lankan law on consumer protection and e-banking to enhance and safeguard the customer experience in online contracting.