Electronic Transaction

Electronic Transaction

Background of Electronic Transaction:

Electronic Transaction was legally recognized very first by The Uniform Electronic Transactions Act (UETA). UETA is one of the several United States Uniform Acts proposed by the National Conference of Commissioners on Uniform State Laws (NCCUSL).  The Uniform Law Commissioners promulgated the UETA in 1999. It is the first comprehensive effort to prepare state law for the e-commerce era. Many states have already assumed legislation pertaining to such matters as digital signatures, but UETA represents the first national effort at providing some uniform rules to govern transactions in electronic commerce that should serve in every state. Although related to the Uniform Commercial Code, the rules of UETA are primarily for “electronic records and electronic signatures relating to a transaction” that is not subject to any article of the Uniform Commercial Code, except for Articles 2 and 2A. A “transaction” means a transaction is an agreement between a buyer and a seller to exchange goods, services, or financial instruments.

Application:

UETA applies to a broader set of transactions, but only with the limited objective of facilitating electronic contracts. Nobody is forced to conduct electronic transactions. Parties to electronic transactions come under UETA, but they may also opt-out. They may vary, waive or disclaim most of the provisions of UETA by agreement, even if it is agreed that business will be transacted by electronic means. The rules in UETA are almost all default rules that apply only in the event the terms of an agreement do not govern.

Electronic Transaction in Pakistan:

The Electronic Transaction Ordinance 2002, briefly called ‘ETO 2002’ enacted as an ordinance but later has validated by the legislature. It aims to provide for the legal framework so that legal sacredness is harmonized to all electronic records and other activities carried out by electronic means. Which clearly stipulates an acceptance of the contract may be expressed by electronic means of communication and the same shall have legal validity and enforceability. The said law purports to facilitate electronic interaction in trade and commerce, eliminate barriers and obstacles coming in the way of electronic commerce resulting from the glorious uncertainties relating to writing and signature requirements over the Internet. The ETO 2002 aims to fulfill its objects of promoting and developing the legal and business infrastructure necessary to implement electronic commerce. To form a complete cyber code of law the provisions of Qanon e Shahadat Order 1984 have amended for admissibility of electronic evidence, in the schedule of ETO 2002.

 

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