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E-Commerce in Vanuatu: Can Contract Law Accommodate for New Technology? (Working Paper) [2000] JSPL 8; (2000) 4 Journal of South Pacific Law

E-commerce in Vanuatu:

Can contract law accommodate for new technology?

Phillip Tagini, Graduate Assistant, School of Law, University of South Pacific

Table of Contents
1. Introduction
2. What is e-commerce?
3. A brief history of e-commerce
4. Applicable law in Vanuatu
5. Methods of contracting on-line
6. The contractual issues
7. Writing and signature requirements
8. Conclusion
 References

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1. Introduction

E-commerce is a recent phenomenon in the world of business. It represents the most radical force of change that nations have encountered in commerce since the industrial Revolution. On a worldwide scale, the number of businesses and individuals turning to electronic commerce is overwhelming and it is estimated that this number will continue to increase in the next 5 years. Many Governments support this development and to ensure that this technology is effectively used, laws are passed to regulate its use. To date, the US, Australia, NZ and the European Union have passed such laws.

Vanuatu is a former French and English Condominium located in the South West Pacific. The legal system is predominantly based on the English legal system and most commercial transactions are regulated by the common law of contracts. The introduction of computers, the internet and the information highway is a mixed blessing for Vanuatu. It is a bag of opportunities as well as a sea of troubles for both the entrepreneur and the consumer who want to trade on-line. Electronic commerce raises questions about jurisdiction as well as which law is applicable. The one this paper is focussed on is whether contracts law is adequate to deal with the issues raised by e-commerce or if not how should legislation intervene?

2. What is e-commerce?

E-commerce is short for electronic commerce. As its name suggests, e-commerce involves the conducting of commercial transactions through electronic media. For a broad definition, e-commerce includes transactions effected through any electronic means such as facsimile, telex and telephone. Today, the term is restricted to trade and commercial transactions involving computer to computer communications. (1) Electronic communications take place either through a ‘closed’ or ‘open’ network. A closed computer network system is one that is closed to the public with easily identifiable users. Examples include debit cards, credit cards and electronic data interchange (EDI). On the other hand, an open system is one that is open to the public with multiple users. An example is the internet. In this paper the restricted definition of e-commerce will be used (i.e. computer to computer communications) and analysis will be on an open system of electronic communication (i.e. the Internet).

3. A Brief history of e-commerce