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Parties’ legal capacity in electronic commerce transactions

Author

Listed:
  • Parviz Bagheri

    (Bakhtar Institute of Higher Education
    Universiti Kebangsaan Malaysia)

  • Kamal Halili Hassan

    (Universiti Kebangsaan Malaysia)

  • Mehdi Shabannia Mansour

    (Universiti Kebangsaan Malaysia)

Abstract

The aim of this article is to scrutinise the uncertainty of the Iranian Electronic Commerce Law (IRI ECL 2004) provisions especially on the issue of capacity of parties. Issues of parties’ legal capacity have been resolved in traditional contracts but they are still debatable in electronic commerce transactions. Under UK law, contracts formed by minors for things other than necessities are unenforceable against the minor but enforceable against the merchant (seller) while according to US uniform commercial code in online contracts capacity is not recognized as a legal excuse to nullify a contract. At the mean time, contracts made by incapacitate person is considered null under Iranian law. In spite of technical developments such as digital signatures and smart cards used in verifying the identity and capacity of parties in electronic commerce transactions, the legal certainty on capacity of parties is still questionable. The article also examines the application of traditional contract general rules on parties’ legal capacity in Iran to electronic commerce with reference to EU law. The EU law which is already at an advance stage serves a guide for future development of e-commerce law in Iran.

Suggested Citation

  • Parviz Bagheri & Kamal Halili Hassan & Mehdi Shabannia Mansour, 2017. "Parties’ legal capacity in electronic commerce transactions," European Journal of Law and Economics, Springer, vol. 44(3), pages 503-515, December.
    • Handle: RePEc:kap:ejlwec:v:44:y:2017:i:3:d:10.1007_s10657-012-9372-x
    DOI: 10.1007/s10657-012-9372-x
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    More about this item

    Keywords

    E-commerce; ECL 2004; Parties’ legal capacity; Iran;
    All these keywords.

    JEL classification:

    • K1 - Law and Economics - - Basic Areas of Law
    • K12 - Law and Economics - - Basic Areas of Law - - - Contract Law

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