Electronic Commerce: Formal Requirements in Commercial Transactions Advice from the Law Commission

Law Commission
ELECTRONIC COMMERCE:
FORMAL REQUIREMENTS IN COMMERCIAL TRANSACTIONS
ADVICE FROM THE LAW COMMISSION

December 2001

The Law Commission was set up by the Law Commissions Act 1965 for the purpose of promoting the reform of the law. The Law Commissioners are: The Honourable Mr Justice Carnwath CVO, Chairman Professor Hugh Beale Mr Stuart Bridge Professor Martin Partington Judge Alan Wilkie, QC The Secretary of the Law Commission is Mr Michael Sayers and its offices are at Conquest House, 37-38 John Street, Theobalds Road, London WC1N 2BQ. The terms of this paper were agreed on 3 December 2001. The text of this paper is available on the Internet at: http://www.lawcom.gov.uk

©

Crown copyright 2001

ELECTRONIC COMMERCE:

FORMAL REQUIREMENTS IN COMMERCIAL TRANSACTIONS
ADVICE FROM THE LAW COMMISSION
CONTENTS
Page

PART 1:

INTRODUCTION

1

PART 2:

THE UNCITRAL MODEL LAWS

3

PART 3:

STATUTORY FORM REQUIREMENTS

7

PART 4:

CARRIAGE BY SEA

23

PART 5:

SALE OF GOODS

25

PART 6:

CARRIAGE BY ROAD, RAIL AND AIR

28

PART 7:

INSURANCE

31

PART 8:

FACTORING

36

PART 9: PART 10:

PAYMENT MECHANISMS

38 40

SUMMARY OF CONCLUSIONS

PART 1 INTRODUCTION
THE IMPORTANCE OF ELECTRONIC COMMERCE

1.1

Global electronic commerce revenue for 2000 was in the region of $286 billion; a figure which was expected to increase to $500 billion this year and to exceed $3 trillion in 2004. This rapid increase reflects the fact that electronic commerce has a number of advantages over paper-based commerce: in particular, speed and reducing the cost of doing business. The rapid rate of change which electronic commerce is bringing about means that reform of any legal obstacles to electronic commerce in the UK should be addressed as soon as possible if the UK is to enjoy the full benefits offered by electronic commerce and if UK businesses are to play a major role in the global electronic commerce