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VALIDITY AND FORMATION OF CONTRACT
Validity of the contract
Formation of the contract
Validity of the contract
This sample clause attempts to emphasize the intention of the
parties to form valid and binding
contracts by EDI and to provide proof of this intention to third
parties. As such, the provision
provides that parties will not challenge the validity of
transactions effected by use of EDI, on the
sole ground of that means.
The law applicable to the data transferred might be different
from one country to the other and
the parties may not necessarily be aware of national laws
restriction on the content of an EDI
Message. It is reasonable to ensure that parties will take care
to respect the national legislation
applicable to the content of the EDI Message.
Whenever the data included in an EDI Message received is
inconsistent with national law of the
receiver, the obligation on him will be to inform the other party
of this inconsistency and he may
then be able to take measure to avoid breach of its own law.
Sample Clauses:
- The parties bound by the Agreement, expressly
waive any rights to contest the
validity or enforceability of a
contract, effected by the use of EDI in accordance
with the terms and conditions of the
Agreement, or the authenticity of an
Electronic Signature on the sole ground
that it was effected by EDI.
- The Parties agree not to contest the authenticity
admissibility or enforceability of
messages under the provisions of any
applicable law relating to whether certain
agreements are in writing and signed by
the Party to be bound thereby.
- Any Electronic Communications properly transmitted
pursuant to this Agreement
shall be considered to be "written" or
"in writing". Any such message when
containing, or to which there is
affixed, and Electronic Signature shall be deemed
to have been "signed" and to constitute
a "true copy" when printed from
electronic files or records established
and maintained as specified in the clause
on DATA-LOG: RECORDING, STORAGE AND
RECONCILIATION OF
ELECTRONIC DATA INTERCHANGE MESSAGES.
- Each party shall ensure that the content of an EDI
Message, sent or received, is
consistent with the law of its own
respective country, the application of which
could restrict the content of an EDI
Message or limit its use, and shall take all
necessary measures to inform without
delay the other Party if such an
inconsistency arises.
Formation of the contract
The following sample clause is related to the time and place
where a contract is concluded or
formed. The determination of the place and time of formation of a
contract is important with
regard to the legal consequences it involves. This sample clause
implements the "reception
rules" which ensure that acceptance takes place at the place and
at the time of receipt of such
acceptance by the offeror.
Sample Clause:
- The contract effected by the use of EDI shall be
concluded at the time and place
where the EDI Message constituting
acceptance of an offer reaches the computer
system of the offeror.