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Contracts By E-MailAgreements for services or goods may ordinarily be enforceable whether oral or written, if there is a valid offer, acceptance and consideration.But the Statute of Frauds requires a written, signed document for the sale of goods valued at $500.00 or more. With more and more commercial transactions being completed by E-mail, is such writing sufficient? Congress resolved this in 2000 by the "Electronic Signatures in Global and National Commerce Act" for transactions in interstate or foreign commerce. A transaction will not be denied legal effect simply because it is in electric form or uses electronic signatures. However, the terms must be clear and complete, evidencing a valid agreement. As for contracts pre-dating 2000, or involving only intrastate (local) commerce, a number of courts have held E-mail may satisfy the writing and signature requirements of the Statute of Frauds. (The Pennsylvania Courts have not spoken to this issue yet.) But the message is clear. E-mail exchanges must clearly show a "meeting of the minds" on price, number, delivery, description, terms and all essential elements of the transaction. The shorthand often used in E-mails should not be allowed to obscure a clear understanding. |
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