Northern Territory Second Reading Speeches Northern Territory Second Reading Speeches[Index] [Search] [Bill] [Help]
| Madam Speaker, I move that the bill be now read a second time and I point out a typographical error on the bill. The purpose of this bill is to amend the Electronic Transactions (Northern Territory) Act 2000 to reflect internationally recognised legal standards in accordance with the United Nations Convention on the Use of Electronic Communications in International Contracts 2005. The bill seeks to increase certainty for international and domestic transactions conducted by an electronic medium, and encourage the growth of electronic commerce. The bill strengthens the existing regime by: · recognising the use of automated message systems in contract formation; · clarifying the rules in relation to invitations to treat; · creating rules to determine the location of the parties in an electronic environment; · amending electronic signature provisions; and · amending default rules for time and place of despatch and receipt of electronic communications. Currently, the Electronic Transactions (Northern Territory) Act 2000 facilitates the use of electronic transactions based on the principles contained in the 1996 United Nations Commission on International Trade Law Model Law and Electronic Commerce. The Commonwealth and all other states and territories also have electronic transactions legislation based on that 1996 Model Law. In 2005, the United Nations Convention on the Use of Electronic Communications and International Contracts was adopted by the United Nations. It updates many of the concepts in the 1996 Model Law. The convention applies to international contracts. It confirms the validity of electronic transactions and clarifies the traditional rules of contract formation to accommodate electronic commerce. Its purpose is to facilitate international trade by removing possible legal obstacles or uncertainty in the use of electronic communications. A consultation paper discussing the proposed amendments to Australian electronic transactions legislation was released for public comment in 2008. Following the receipt of supportive comments, ministers agreed at the May 2010 meeting of the Standing Committee of Attorneys-General (SCAG), to update their electronic transactions legislation and adopt new model legislation to implement the convention. It is proposed that Australia will accede to the 2005 convention when model legislation is enacted in each jurisdiction. Although the convention only relates to international contracts, ministers also agreed the model legislation should apply to both international and domestic contracts to ensure commonality of rules for contract using electronic communications. The new model legislation offers practical solutions for problems arising from the use of electronic communications in the formation of performance of contracts between parties located in different countries, to enhance legal certainty and commercial predictability. The model legislation does not otherwise purport to vary or create contract law. The 2005 convention reflects the view that party autonomy is vital in contractual negotiations; therefore, nothing in this bill affects the principal that contracting parties should be free to agree on matters affecting the formation and performance of a contract between them. I now outline the key elements of the bill. Automated Message System: the purchase of goods through a website is often automated and therefore handled by a computer program, rather than the vendor themselves. The bill recognises this growing practice and confirms that the absence of human intervention on one or both sides of the transaction will not preclude contract formation. The bill confirms that contracts formed by means of an automated message system will be legally effective and enforceable. The bill also makes minor amendments to provide a certain level of protection for consumers if a website does not provide an opportunity for correction. It enables a person who makes an input error which has been dealt with by an automated message system to withdraw a portion of the electronic communication in certain circumstances. However, the right to withdraw a portion of an electronic communication will not confer a right to rescind or otherwise terminate a contract. Invitation to Treat: the bill clarifies that a proposal to enter into a contract made by electronic means to the world at large is to be treated as an invitation to make an offer, unless there is a clear indication by the trader of an intention to be bound. Thus, an offer of goods and services made through the Internet will prima facie constitute a binding offer. Location of Parties: the bill also creates rules to determine the location of the parties. As a result of the businesses adopting technological advances, business practices may involve transactions taking place in a variety of ways and places. The bill clarifies that the location of the parties is to be determined by the place of business rather than the location of equipment and technologies supporting an information system, which may be in a different location or jurisdiction to the business. Electronic Signature Provisions: the current legislation provides that an electronic signature must be capable of identifying the signatory and indicating the signatory’s approval of the information contained in the electronic communication. However, there are instances in which the law requires a signature, but that signature does not have the function of indicating the signing party’s approval of the information contained in the electronic communication, for example, notarisation or attestation by a Commissioner for Oaths. The bill remedies this problem by recognising that the notion of a ‘signature’ does not necessarily imply a party’s approval of the entire content of the communication to which the signature is attached. Time and Place of Dispatch and Receipt of Electronic Communications: the bill also amends the current default rules for time and place of dispatch and receipt of electronic communications. For example, the amendments provide that the time of dispatch of an electronic communication is the time when the electronic communication leaves an information system, and the time of receipt of an electronic communication is the time when the electronic communication becomes capable of being retrieved by the addressee at an electronic address. Overall, Madam Speaker, adopting the amendments contained in the model bill will serve to: · modernise the Territory’s laws on e-commerce so that they reflect internationally-recognised legal standards and enhance cross-border online commerce; · increase certainty for international trade by electronic means and thereby encourage further growth and electronic contracting; and · confirm the Territory’s commitment to facilitating electronic communications in international trade transactions as reflected in free trade agreements. The bill will ensure the Territory’s electronic transactions legislation reflects current international standards. I commend the bill to honourable members and I table a copy of the explanatory statement. Debate adjourned. |