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Laws of Contract and Online Contracts
Offer and Acceptance

Elements of Contract

How does an online seller ensure that contract is enforceable and he can get pay?

To achieve that, he must set up a platform capable of agreeing with his customers. As to payment, it can be made outline by the customer after ordering.

Alternatively, it can be paid through post e.g. cheque, money transfer or face-to-face. Payments being made immediate to ordering of the purchase can reduce the risk of repudiation is denial of the contract or fraud and hence is preferred whether an online contract is legally enforceable depends on the valid application of the laws on electronic transactions.

A contract must consist of the following 4 elements :

  • offer,
  • acceptance,
  • consideration,
  • intention to enter into legal relation.
  • Of course, the parties entering into the contract must have the legal capacity to do so e.g. business contracts made by minors (i.e. person under 18) is not enforceable against the minor. Besides, the contract must be legal which means that for instance, a person in Hong Kong betting online on a virtual casino situates outside Hong Kong is no enforceable through the Hong Kong courts based on Hong Kong laws. A person in Hong Kong gambles online will also attract criminal liability under the Gambling Ordinance.