Dr. Diganta Biswas School of Law Christ University, Bangalore

Presentation- 4UNCITRAL Model Law

onE- Commerce

Dr. Diganta BiswasSchool of Law

Christ University, Bangalore

2

UNCITRAL Model Law on E- commerce

The United Nations Commission on International Trade Law (UNCITRAL)

Model Law on Electronic Commerce (MLEC) was promulgated in 1996 (and

amended in 1998) to assist countries in the framing of legislation which would

enable and facilitate electronic commerce and electronic governance in the world.

The MLEC was the first legislative text to adopt the fundamental principles of non-

discrimination, technological neutrality and functional equivalence that are widely

regarded as the founding elements of modern electronic commerce law. The

principle of non-discrimination ensures that a document would not be denied legal

effect, validity or enforceability solely on the grounds that it is in electronic form.

The principle of technological neutrality mandates the adoption of provisions that

are neutral with respect to technology used.

Sunday,December 01, 2013

Dr. Diganta Biswas, School of Law, Christ University, Bangalore.


3

It may be noted that certain provisions of the MLEC were amended by the Electronic Communications

Convention, 2005 (United Nations Convention on the Use of Electronic Communications in

International Contracts, 2005) in light of recent electronic commerce practice. This Convention is

intended to strengthen the harmonization of the rules regarding electronic commerce and

foster uniformity in the domestic enactment of UNCITRAL model laws relating to

electronic commerce, as well as to update and complement certain provisions of those

model laws in light of recent practice. Finally, the Convention may provide those

countries not having yet adopted provisions on electronic commerce with modern,

uniform and carefully drafted legislation.

Other related Documents in regard to E- Commerce:

UNCITRAL Model Law on Electronic Signatures (2001)

United Nations Convention on Contracts for the International Carriage of Goods Wholly or Partly by Sea

(New York, 2008) (the "Rotterdam Rules")

Sunday, December 01, 2013


4

Features of this model law-This model law- This Law applies to any kind of information in the form of a data message used in

the context of commercial activities; establishes rules and norms that validate and recognize contracts formed

through electronic means; sets rules for forming contracts and governing electronic contract performance; puts electronic communications on par with traditional paper-based modes

of communication in order to fostering efficiency in international trade; defines the characteristics of valid electronic writings and of an original document; provides for the acceptability of electronic signatures for legal and commercial

purposes; and supports the admission of computer evidence in courts and arbitration proceedings.



5

UNCITRAL Model Law Salient Features:

Between and among the parties involved in generating, sending, receiving, storing

or otherwise processing data messages, and except as otherwise provided, the

provisions of chapter III i.e. regarding the communication of data messages may be

varied by agreement. However, such variation does not affect any right that may

exist to modify by agreement any rule of law regarding the application of legal

requirements to data messages. (Article 4)

Information shall not be denied legal effect, validity or enforceability solely on the

grounds that it is referred to in that data message. (Article 5)

Where the law requires information to be in writing, that requirement is met by a

data message if the information contained therein is accessible so as to be usable

for subsequent reference. (Article 6)



6

Where the law requires a signature of a person, that requirement is met in relation to a

data message if:

(a) a method is used to identify that person and to indicate that person’s approval of

the information contained in the data message; and

(b) that method is as reliable (discussed in Art. 8.1a and 3a) as was appropriate for the

purpose for which the data message was generated or communicated, in the light of

all the circumstances, including any relevant agreement.

(Article 7)

(Article 8) Where the law requires information to be presented or retained in its

original form, that requirement is met by a data message if:

(a) there exists a reliable assurance as to the integrity of the information from the

time when it was first generated in its final form, as a data message or otherwise; and



7

(b) where it is required that information be presented, that information is capable

of being displayed to the person to whom it is to be presented.

(3) For the purposes of subparagraph (a) of paragraph (1):

(a) the criteria for assessing integrity shall be whether the information has

remained complete and unaltered, apart from the addition of any endorsement

and any change which arises in the normal course of communication, storage

and display; and

(b) the standard of reliability required shall be assessed in the light of the

purpose for which the information was generated and in the light of all the

relevant circumstances.



8

Under Article 9(1), In any legal proceedings, there should not be any denial

regarding the admissibility of a data message in evidence:

(a) on the sole ground that it is a data message; or,

(b) if it is the best evidence that the person adducing it could reasonably be

expected to obtain, on the grounds that it is not in its original form.

Under Art. 9(2) Information in the form of a data message shall be given due

evidential weight.

In assessing the evidential weight of a data message, regard shall be had to the

reliability of the manner in which the data message was generated, stored or

communicated, to the reliability of the manner in which the integrity of the

information was maintained, to the manner in which its originator was identified,

and to any other relevant factor.



9

Under Art. 10(1) Where the law requires that certain documents, records or

information be retained, that requirement is met by retaining data messages,

provided that the following conditions are satisfied:

• (a) the information contained therein is accessible so as to be usable for subsequent

reference; and

• (b) the data message is retained in the format in which it was generated, sent or

received, or in a format which can be demonstrated to represent accurately the

information generated, sent or received; and

• (c) such information, if any, is retained as enables the identification of the origin

and destination of a data message and the date and time when it was sent or

received.

However, the provision does not extend to any information the sole purpose of

which is to enable the message to be sent or received.



10

Key provisions of the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce:

The MLEC establishes rules for the

formation and validity of contracts concluded by electronic means,

attribution of data messages,

acknowledgement of receipt and

determination of the time and place of dispatch and receipt of data messages.

Moreover, part II of the MLEC, dealing with electronic commerce in connection

with carriage of goods, has been complemented by other legislative texts, including

the United Nations Convention on Contracts for the International Carriage of

Goods Wholly or Partly by Sea (the "Rotterdam Rules") and may be the object of

additional work of UNCITRAL in the future.



11

Important Provisions under the 2005 Convention:

The Convention features the followings-

The Convention applies to all electronic communications exchanged between parties

whose places of business are in different States when at least one party has its place of

business in a Contracting State. (Art. 1).

Contracts concluded for personal, family or household purposes, such as those relating

to family law and the law of succession, as well as certain financial transactions,

negotiable instruments, and documents of title, are excluded from the Convention's

scope of application (Art. 2).

The Convention sets out criteria for establishing the functional equivalence between

electronic communications and paper documents, as well as between electronic

authentication methods and handwritten signatures (Art. 9).

The Convention defines the time and place of dispatch and receipt of electronic

communications. (Art. 10).Sunday, December 01, 2013


12

Communications are not to be denied legal validity solely on the grounds that they

were made in electronic form (Art. 8).

The enforceability of contracts entered into by such systems, including when no

natural person reviewed the individual actions carried out by them (Art. 12).

A proposal to conclude a contract made through electronic means and not

addressed to specific parties amounts to an invitation to deal, rather than an offer

whose acceptance binds the offering party, in line with the corresponding provision

of the CISG (Art. 11).

Provides remedies in case of input errors by natural persons entering information

into automated message systems (Art. 14).
