E-Commerce and Information Technology Services

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E-Commerce and Information Technology Services: Improved customer satisfaction, quantifiable productivity benefits, increased sales, constructive response to competitive pressure and reduced costs and risk have all been cited by businesses as key drivers behind Information Technology investment.

When a company invests time and money in building a transactional website, the company wants to make sure that its terms are binding on a customer and vice versa the customer wants to know that buys from a website that is compliant and that all his rights are protected. Here is a quick checklist of what a company should be considering:

On line trading checklist:

When making a contract, you need 3 main elements, in order to have a valid contract:

an offer (for example, toaster for sale);

a consideration (for example, for £10); and

an acceptance (for example, I will buy it, here is the money).

The same applies when you buying products or services online:

Offers and invitations to treat

Design the website as an ordinary shop window, where a customer when ordering a company's products and services is simply making "offers" to purchase.
The website must be clearly stating that the supplier will not be bound unless and until it accepts the customer's offer.
The online order form must clearly contain the supplier's standard terms and conditions. These terms must apply to the offer made by the customer.
Please note the terms of sale and the terms of website use are two different documents and should not be incorporated into one.
Where necessary, the online supplier should be able to verify the identity of the customer.

Acceptance

Clearly explain on the website how offers and acceptances are to be communicated and received and make it clear that, the customer is making the offer (which the supplier may or may not accept).

Incorporation of terms

Ensure that, the customer’s terms and conditions are effectively incorporated in the contract with the customer, by bringing them to the customer’s attention, before the contract is made.
The website should be set up in such a way that, each customer has to scroll through all the terms and conditions and then click on an “Accept” button, before being allowed to place an order. Displaying the terms in a prominent place on the homepage of the website to ensure that, the customer can read them at anytime.

Terms implied by statute and other mandatory statutory provisions

The supplier must check with its legal representative whether any terms may be implied by statute into the contracts with the users and to what extent such terms and other liabilities of the customer may be legally excluded. Special care is necessary in the event the customers are consumers.

Governing law and jurisdiction

Ensure that, the supplier’s terms and conditions specify the law and the courts of the supplier’s own jurisdiction, as the governing law of the contract, in order to avoid the uncertainties which arise, where no express choice is made. Note, however that, in some circumstances, the mandatory laws of the customer’s home jurisdiction may nonetheless be applied (especially where consumers are involved).

We can help you by:

Acquiring, Protecting and Exploiting Intellectual Property Rights;
Technology Procurement Agreements including Hardware Purchasing;
Website Design, Development and Hosting Agreements;
Software Support and Maintenance Agreements and SLAs;
Website Support and Maintenance Agreements and SLAs;
Website Auditing;
Licensing and Distribution of Software Agreements;
Reseller and VAR Distribution Models;
E-Commerce Agreements;
Domain Name Assignments;
Terms and Conditions of Use, Email and Internet Policies;
Outsourcing and Facilities Management Agreements;
General Terms and Conditions for online trading, Privacy Policy and Data Protection.

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Anassutzi & Co offers business strategy advice putting legal advice into context and offers high quality expertise for fixed fees www.anassutzi.com