At issue is the regulation of the whole range of electronic techniques used in negotiating and concluding contracts. These include the use of data messages such as electronic data interchange (EDI), e-mail and even older technologies, such as telegrams, telex or telecopy.
Questions as to the validity of electronic signatures, the increased likelihood of contracts being 'clicked' into being by mistake, and even the question of when or how such a contract is concluded, are not covered by existing international rules.
Present international controls date back to the Vienna Convention of 1980, pre-dating the growth of e-commerce. This has resulted in individual countries, and collective legislatures like the EU, regulating separately, leading to inconsistency of approaches across the globe.
The UN Conference on International Trade Law (UNCITRAL) is therefore seeking to bring the international rules up to date, consolidating the global position, and the EU wants to add its voice to the negotiations.
“Two things are certain,” said Single Market Commissioner Charlie McCreevy. “More and more companies of all sizes are active internationally and more and more business is being done electronically. We want EU businesses to be as well placed as possible to benefit. Giving Europe a strong voice in drawing up this Convention will contribute to making sure e-contracts can be drawn up with a minimum of fuss.”
The aim is also to ensure compatibility between the draft Convention and the EU’s Directive on electronic commerce. Such compatibility between EU and international rules would create better legal clarity and security for European companies active outside the EU, says the Commission.