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Foreign Trade university E-contracting & e-contracts Nguyen Van Thoan Head of Ecommerce Department Ecom Foreign Trade university E-contracting & e-contracts Nguyen Van Thoan Head of Ecommerce Department Ecom - FTU - Th. S. Nguyen Van Thoan

E-contracts E-contracting Ecom - FTU - Th. S. Nguyen Van Thoan E-contracts E-contracting Ecom - FTU - Th. S. Nguyen Van Thoan

Case 1 October 25 th, A (Australia) sent an e mail to B(Hanoi) asking Case 1 October 25 th, A (Australia) sent an e mail to B(Hanoi) asking B to design a website for A’s shop. B replied by e mail that A’s requirement can be done well, and suggested that they should sign a contract November 2 nd, A sent another email describing all the details of the requirements for the website. In the email, A stated that “B, please let me know if you can meet this requirements by this Friday. Reply by email is OK” On November 3 rd, Friday, B replied by email “the job has been started”. A saw this email but had not opened it. After the weekends, A came to office but he had changed his. E-commerce Processes & Strategies - 2004 mind, he did not want B to design the Slide 3

Case 1 Questions Q 1. Between A and B, is there a contract If Case 1 Questions Q 1. Between A and B, is there a contract If so, where and when is the contract formed? Options 1: There has been a contract A sent the order, B accepted Time and place in location of B’s office (Hanoi) Options 2: There has not been any contracts A > Order > B A < Accept < B There has been no contracts A > Confirm > B At this time there is a contract Note: Two parties should stated where and when contract formed or which law is aplicable also how to settle if disputs arise. - Q 2. Is there any differences if B’s mail server located in USA? - Q 3. Is there any differences if B’s email only gets into A’s information system on Sunday morning? E-commerce Processes & Strategies - 2004 Slide 4

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Case 2 Seller (Vietnam) and Buyer (Japan) met at a Trade Fair in Hanoi Case 2 Seller (Vietnam) and Buyer (Japan) met at a Trade Fair in Hanoi and negotiated a contract on 4 th June 2005 Product: 5. 000 ceramics vases (sample agreed) Price: 2 USD/pc FOB Hai. Phong port, Vietnam Delivery: 45 days after signing of contract Payment: TTR 50% in advance, 50% after delivery Port of delivery: Yokohama, Japan

Case 2 ®June 11 th, Buyer (Japan) required Seller to draft a contract with Case 2 ®June 11 th, Buyer (Japan) required Seller to draft a contract with agreed articles ®Seller sent an email with the agrees articles as contract, ending with: Best regards Nguyen Van NB DIRECTOR ®Buyers replied by email with “ Agreed “ and ending with Best regards Yoko Hasagawa DIRECTOR

Case ®One month later, July 11, Buyer (JP) sent an email requiring Seller to Case ®One month later, July 11, Buyer (JP) sent an email requiring Seller to reduce the price by 10% due to bad market situations ®On the same day, Seller replied saying that NOT agree and that both sides should follow the signed contract ®On July 25, Buyer sent an email saying that if Seller do not reduce the price, they will not take the shipment

Case 2 Questions ® Is there a contract binding responsibilities of two parties ® Case 2 Questions ® Is there a contract binding responsibilities of two parties ® When and where the contract is formed? ® To avoid this issues, what should Seller do?

Sources for online e commerce laws 1. UNCITRAL Model Law on Electronic Commerce (1996) Sources for online e commerce laws 1. UNCITRAL Model Law on Electronic Commerce (1996) 2. U. S. Uniform Electronic Transaction Act (UETA) (1999) 3. EU Directive on Digital Signature (1999) 4. EU Directive on E Commerce (2000) 5. UNCITRAL Model Law on Electronic Signatures (2001) 6. U. S. Electronic Signature Act (2001) G. Olivieri : Law of E-Commerce Hong Kong Summer Course 2002 Ecom FTU Th. S. Nguyen Van Thoan

Digital signature z Public keys Public key 2 (receiver) Order to buy 100 PCs Digital signature z Public keys Public key 2 (receiver) Order to buy 100 PCs Sender Encryted messag e Private key 2 (receiver) INTERNE T Encrypte d message Receiver message Private key 1 (sender) Encrypte d message Sender Order to buy 100 PCs Signed Encrypte d message Digitally signed Public key 1 (sender) INTERNE T Signed Encrypte d message Digitally signed Receiver Th. S. Nguyen Van Thoan – Dai hoc Ngoai thuong 11

The Secret-Key Encryption Model Source: W. Stallings, “Cryptography and Network Security” The Secret-Key Encryption Model Source: W. Stallings, “Cryptography and Network Security”

The Public-Key Encryption Model Source: W. Stallings, “Cryptography and Network Security” The Public-Key Encryption Model Source: W. Stallings, “Cryptography and Network Security”

The Public-Key Authentication Model Source: W. Stallings, “Cryptography and Network Security” The Public-Key Authentication Model Source: W. Stallings, “Cryptography and Network Security”

Digital certificate z functions y. Indentify the owner of public key/private key y. Issued Digital certificate z functions y. Indentify the owner of public key/private key y. Issued by a CA Name : “Richard” key-Exchange Key : Signature Key : Serial # : 29483756 Other Data : 10236283025273 Expires : 6/18/96 Signed : CA’s Signature Th. S. Nguyen Van Thoan – Dai hoc Ngoai thuong 15

E Contract UN/CEFACT, 3/2000, article 3, item 2. 1. “ An e mail is E Contract UN/CEFACT, 3/2000, article 3, item 2. 1. “ An e mail is regarded as an offer if which contains proposal to sign contracts and is sent to 1 or more specific peole at the same time stated clearly the intention to accept the stated obligations when the receiver(s) accept the conditions in the email. An e mail which is sent to many people is not regarded as fixed offer” “mét bøc th ® coi lµ mét lêi chµo hµng nÕu nã bao îc hµm lêi ®Ò nghÞ ký kÕt hîp ®ång vµ ® c göi ®Õn 1 î hoÆc 1 sè ng êicô thÓ ®ång thêi kh¼ng ®Þnh mét c¸ch ®Çy ®ó ý ®Þnh s½n sµng chÊp nhËn tr¸ch nhiÖm khi chµo hµng ®ã ® c chÊp nhËn. Mét th ® î iÖn tö göi ®Õn nhiÒu ng êikh «ng ® c coi lµ chµo hµng trõ khi cã î quy ®Þnh cô thÓ kh¸c.

Thank you q&A Thank you q&A