Regulating Offer and Acceptance for E-commerce

In the absence of case law to provide clarity, co mmentators speculated on the nature of e-commerce sites.

• Most agreed that despite the lack of a human actor, the interactive nature of websites made them more akin to self-service shop displays than vending or ticket machines.
• The lack of clarity led to divergent approaches across Europe, with some following the "standing offer" principle and others the "invitation to treat" principle.
  • See Lecture 5 - Electronics Commerce & Electronics Contracts (Part I)
• This lack of harmonization raised concerns about its potential adverse impact on cross-border e-commerce transactions in both B2B and B2C contexts.

Invitation to Treat:

An invitation to treat refers to the act of inviting someone to enter into a contract. This invitation is typically demonstrated by actions such as displaying goods in a department store. In this scenario:

• A customer can peruse the goods, examine their prices, and make a decision about whether to buy.
• If satisfied, the customer proceeds to check out or pay, constituting an offer to purchase.
• When the cashier checks the price and hands over the goods, the acceptance of the offer takes place. Shop accepts offer from customer
• Consequently, a contract of sale is formed at this point.

Standing Offer

• A Standing Offer is a pre-established agreement between a buyer and a seller, facilitating repeated purchases over a specified period without constant renegotiation. It streamlines procurement processes and provides stability in commercial relationships. For example, a company may have a standing offer with a supplier for office supplies, ensuring consistent and efficient procurement without frequent negotiations.
• Standing Offer (Vending Machine Transaction): In this scenario, a standing offer describes the agreement established when a customer inserts money into a vending machine to purchase a ticket. The key characteristics include:
  • Instant Commitment: The customer becomes committed to the transaction at the very moment they insert money into the machine.
  • Irreversibility: Once the money is inserted, the customer cannot retrieve it. The commitment is beyond recall, implying that the customer is obligated to complete the transaction. (เอาเงินคืนไม่ได้)
  • Instant Acceptance: The acceptance of the offer (to purchase a ticket) occurs immediately when the money is put into the machine. This instantaneous acceptance ==leads to the conclusion of the contract at that moment.==

Vending machine made offer(with products. price), Customer accept the offer**

In Amazon's Conditions of Sale

• The principle applied is that the customer's order is considered an offer to buy a product from Amazon (Invitation to treat) — มีของให้ซื้อมากมาย ออกจะคล้าย ๆ Department store มากกว่า Vending machine.
• The process involves the following steps:
  1. Order Placement:
     • When a customer places an order on Amazon, it is regarded as an offer made by the customer to purchase the specified product(s).
  2. Order Confirmation Email:
     • Amazon responds by sending an Order Confirmation Email to acknowledge the receipt of the order and provide details. However, this email does not confirm the acceptance of the customer's offer to buy the product.
  3. Acceptance and Contract Conclusion:
     • The actual acceptance of the customer's offer and the conclusion of the contract occur when Amazon dispatches the product and sends a Dispatch Confirmation Email to the customer. This email confirms that the product has been dispatched to the customer, finalizing the contract of sale.

In summary, Amazon follows the principle that the customer's order is treated as an offer, and the contract is only concluded when Amazon dispatches the product and notifies the customer through a Dispatch Confirmation Email.

Contract of Sale: Definition

• Informal in nature.

• transfer ownership of on property

• requires seller, buyer; buyer pays the price for owner’s property

(Paragraph 2) An agreement to sale or to buy or the promise to sale or to buy as mentioned in the first paragraph is not enforceable by action unless there is some written evidence signed by the party liable or deposited or paid a part of some debts.

• need 2 signatures of the 2 parties to be enforceable

(Paragraph 3) The provisions of the foregoing paragraph shall be applied to a contract of sale of movable property where the agreed price is twenty thousand baht or upwards.

• The sale of movable property must be written in contract if 20k upwards

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มาตรา 456: การซื้อขายอสังหาริมทรัพย์ ถ้ามิได้ทำเป็นหนังสือและจดทะเบียนต่อพนักงานเจ้าหน้าที่เป็นโมฆะ วิธีนี้ให้ใช้ถึงซื้อขายเรือมีระวางตั้งแต่ห้าตันขึ้นไป ทั้งซื้อขายแพและสัตว์พาหนะด้วย

สัญญาจะขายหรือจะซื้อทรัพย์สินตามที่ระบุไว้ในวรรคหนึ่ง ถ้ามิได้มีหลักฐานเป็นหนังสืออย่างหนึ่งอย่างใดลงลายมือชื่อฝ่ายผู้ต้องรับผิดเป็นสำคัญ หรือได้วางประจำไว้ หรือได้ชำระหนี้บางส่วนแล้ว จะฟ้องร้องให้บังคับคดีหาได้ไม่

บทบัญญัติที่กล่าวมาในวรรคก่อนนี้ ให้ใช้บังคับถึงสัญญาซื้อขายสังหาริมทรัพย์ซึ่งตกลงกันเป็นราคาสองหมื่นบาท หรือกว่านั้นขึ้นไปด้วย

Contract of Sale: Elements

1. Mutual Obligation:
   • A contract of sale involves mutual obligations between the buyer and the seller.
2. No Form Requirement (Except for Immovable Properties):
   • Typically, there is no specific form required for a contract of sale, except in the case of immovable properties, where writing and registration are necessary (as specified in Section 456).
3. Purpose:
   • The primary purpose of a contract of sale is to transfer ownership of the property, with the property itself being the subject of the contract.

Thai Electronic Transactions Act

Thai Electronic Transactions Act B.E. 2544 is intended to facilitate (ทำให้ง่ายขึ้น) e-commerce by allowing some commercial acts, such as offers, acceptance and signatures to be made through…

• e-mail
• electronic data interchange (E.D.I)
• telegram
• telex
• facsimile
• other means to be conducted via the internet networks.

Signature (General Principles)

(Paragraph 2) A fingerprint, cross, seal, or other such mark affixed to a document instead of a signature is equivalent to a signature if it is certified by the signature of two witnesses.

(Paragraph 3) The provisions of paragraph two shall not be applied to a fingerprint, cross, seal, or such other mark affixed to a document before the competent authorities.

• don’t need 2 witnesses if we have marked affixed in front of competent authorities

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มาตรา 9: เมื่อมีกิจการอันใดซึ่งกฎหมายบังคับให้ทำเป็นหนังสือ บุคคลผู้จะต้องทำหนังสือไม่จำเป็นต้องเขียนเอง แต่หนังสือนั้นต้องลงลายมือชื่อของบุคคลนั้น 

ลายพิมพ์นิ้วมือ แกงได ตราประทับ หรือเครื่องหมายอื่นทำนองเช่นว่านั้นที่ทำลงในเอกสารแทนการลงลายมือชื่อ หากมีพยานลงลายมือชื่อรับรองไว้ด้วยสองคนแล้วให้ถือเสมอกับลงลายมือชื่อ 

ความในวรรคสองไม่ใช้บังคับแก่การลงลายพิมพ์นิ้วมือ แกงได ตราประทับหรือเครื่องหมายอื่นทำนองเช่นว่านั้น  ซึ่งทำลงในเอกสารที่ทำต่อหน้าพนักงานเจ้าหน้าที่

• Required by law: ก็พวก formal contract, legal document ไง

Electronic Signature

• Enabling electronic forms and delivery in formal contracts is only part of the solution for online contracting.
• Many formal contracts not only demand a specific form but also require the adoption of terms, often through a signature or its equivalent.
• The challenge lies in electronic documents lacking a physical structure for signatures, necessitating innovative design solutions to replace traditional signatures in the realm of Electronic Signatures.

Primary function of Signature

The primary function of a signature is authentication,
The following altogether are the sub-functions that a signature provides evidence of:

1. The identity of the signatory.
2. The intent for the signature to be valid
3. The approval and adoption of the document's contents by the signatory.

Section 4: Definitions (Thai Electronic Transactions Act B.E. 2544)

• เพิ่มเติมจาก Lecture 5 - Electronics Commerce & Electronics Contracts (Part I)

Legal Effect and Enforceability of Data Message

Electronic Transactions

As per Section 4 of the Thai Electronic Transactions Act B.E. 2544, an "electronic transaction" is defined as a transaction where electronic means are utilized either wholly or partially. This typically involves the use of the internet or other open networks.

Types of Electronic Transactions:

1. Electronic Transaction for Sale of Physical Goods or Services:
   • Refers to transactions conducted electronically that involve the sale or exchange of tangible items or services in the physical world.
2. Electronic Transaction for Sale of Digital Goods or Services:
   • Involves electronic transactions specifically related to the sale or exchange of intangible items or services, often in digital format, such as software, media, or online services.
   • Apple Music, Spotify

Electronic Transaction: Offer/Acceptance

Electronic Transaction: Declaration of Intention

Payment & Security

Tension between Security & Other Values:

• Ease of use:
  • The more security measures added, the more challenging a site becomes to use, and the slower its functionality.
• Public safety and criminal uses of the Internet:
  • Addressing concerns related to public safety and the potential for criminals to exploit the internet for planning crimes or threatening nation-states.

Security Threats in the E-commerce Environment

• 3 key points of vulnerability in e-commerce environment:
  1. Client
  2. Server
  3. Communications pipeline (Internet communications channels)