No closing time regulations, no purchase stress, timesaving and uncomplicated ordering, comparable prices, detailed information and direct contact to the manufacturers, these are just some advantages the Internet offers. The number of people using the internet as a shopping platform is increasing steadily – in Germany already more than 28 million people now use the Internet frequently to make purchases.1 This underlines the importance of legal matters on the electronic Highway and will contribute furthermore to the electronic drive on legal issues within the next years. All the more, it is important to strengthen the confidence of the consumer of the safety of so-called Internet contracts. This paper shall give a summary of issues concerning contracts on the Internet and its consistency with the norms of the BGB (German Civil Code).
Commonly every manner of economic activity on the Internet is referred to as ecommerce. Nevertheless, one can distinguish these activities into so-called offline and online businesses. With offline business, solely the conclusion of the contract occurs electronically. An example would be the ordering of a book through the internet, however, it will still be delivered conventionally by mail. So this remains a simple sales contract with rare online-specific problems. With online business the whole performance including delivery will be conducted on the net. This presupposes when purchasing goods that the objects can be digitalized (e.g. software, music, electronic books etc.). Also in the field of services (e.g. the use of databases, Internet telephony, ticket booking, electronic trade of securities, etc.) online businesses occur.
A special view will be given to the particularities of online auctions.
Table of Contents
A. Introduction
B. Conclusion of a Contract
1. Offer of a Contract
1.1 Coming into effect of a declaration of intention
1.1.1 Divestiture of a declaration of intention
1.1.2 Entry of a declaration of intention
1.1.3 One-way- and dialog-traffic
1.1.3.1 Entry of a declaration by e-mail
A) Sphere of reception
B) Possibility of notice
C) Automatic forwarding and processing
D) Entry interference
1.1.3.2 Entry of a declaration in the WWW
1.1.3.3 Entry of a declaration in a chat channel
1.1.3.4 Entry of a declaration during Internet telephony
1.1.4 Revocation of a declaration of intention
1.1.5 Proof of entry
1.2 The contestation of a faulty declaration of intention
1.2.1 Input error as a mistake
1.2.2 Faulty declaration by computer
1.2.3 Transmission error
1.3 Allocation and liability for acting in somebody’s name
1.3.1 Representation and acting under strange name
1.3.2 Ostensible authority and authority by estoppel
1.3.3 Acting under imaginary names
2. Offer or ‘invitatio ad offerendum’
3. Term of Acceptance
3.1 Acceptance of the offer by e-mail
3.2 Acceptance in the WWW
3.3 Acceptance during Internet telephony and video conference
3.4 Reasons for nullity
C. Particularities of Online-auctions
1. Forms of Online-Auctions
2. Auctions according to § 156 BGB
D. Result
E. Appendix – Applicable Right
1. UN Convention on Contracts for International Sale of Goods – CISG
2. International Civil Law (Internationales Privatrecht - IPR)
3. Legal System of Characteristic Contract Performance
4. German Law
Objectives and Topics
The primary objective of this paper is to examine the legal frameworks and requirements for concluding contracts via the Internet within the scope of the German Civil Code (BGB). It explores whether established legal concepts regarding declarations of intention, offers, and acceptances remain applicable in an online environment, and how issues specific to digital communication—such as technical interference and anonymity—are addressed.
- Legal requirements for declarations of intention (Offer and Acceptance) in electronic business.
- Distinction between one-way communication (e-mail) and dialog-exchange (Internet telephony/chat).
- Liability and allocation issues when acting under false or imaginary identities.
- Legal status of online auctions and their classification under § 156 BGB.
- Applicability of German law and international conventions (CISG/IPR) to cross-border online contracts.
Excerpt from the Book
1.1.3.1 Entry of a declaration of intention by e-mail
According to reception theory, the sphere of control (Machtbereich) includes mail box, PO Box and answering machine. However it is questionable whether the electronic mail box on the mail server of the provider also belongs to the reception area of the receiver. Since the provider has the possibility to close down the mail server, delete e-mails or deny access to ones account, he concentrates the actual sway over the mail server on himself. The electronic mailbox however is destined to receive the e-mails of the addressee and therefore it belongs to the addressee’s sphere of risk. It is incumbent to the receiver to choose a reliable provider which can ensure him a safe retrieval of received and saved e-mails at any time.
If a businessman (§ 14 I BGB) appears in legal and commercial relations with his e-mail address, he demonstrates that an entry of legal consequence (§ 130 I BGB) can be carried out in his mailbox. A restriction to other means of communication and an exclusion of the Internet must be expressed explicitly to each business partner ("opt out"). The opposite applies to the private consumer (§ 13 BGB); for his protection it must be made clear ("opt into"), that he wishes communication via Internet – the consumer may already show this by establishing contact to a business partner via e-mail.
Summary of Chapters
A. Introduction: This chapter outlines the rise of the Internet as a commercial platform and sets the stage for investigating how traditional BGB contract norms apply to digital transactions.
B. Conclusion of a Contract: This main part analyzes the legal mechanics of offer and acceptance in the digital age, including technical delivery, revocations, and the specific challenges of electronic identity.
C. Particularities of Online-auctions: This section investigates how online auction formats function legally, specifically focusing on whether they constitute binding offers or simple invitations and their relation to § 156 BGB.
D. Result: This concluding chapter summarizes that the Internet does not create unbridgeable legal gaps, but rather that existing legal dogmatics effectively manage the risks associated with online contracting.
E. Appendix – Applicable Right: This chapter provides an overview of conflict-of-laws issues, including the applicability of the CISG, International Private Law (IPR), and specific German contract types.
Keywords
Internet contract, BGB, declaration of intention, offer, acceptance, online-auction, § 156 BGB, digital commerce, consumer protection, electronic mailbox, reception theory, contract conclusion, CISG, IPR, e-commerce.
Frequently Asked Questions
What is the core focus of this research paper?
The paper focuses on the legal consistency of Internet-based contract conclusions with the German Civil Code (BGB) and addresses the challenges of applying traditional legal concepts to digital mediums.
What are the primary thematic areas covered in this work?
The key themes include the legal definition of declarations of intention, the classification of different electronic communication modes, liability in anonymous internet settings, and the specific legal regulations for online auctions.
What is the primary objective of this seminar paper?
The goal is to assess whether existing German civil law is sufficient to cover the specific risks and technical nuances of contracting via the Internet, such as electronic data transmission and automated processing.
Which scientific methodology is employed?
The author uses a dogmatic legal approach, analyzing German law (BGB), court rulings, and academic literature to evaluate how traditional legal principles adapt to modern electronic business scenarios.
What aspects does the main body explore?
The main body breaks down the "declaration of intention" into various formats—including e-mail, WWW, chat channels, and internet telephony—and analyzes the conditions under which these are deemed legally effective.
Which keywords characterize this work?
Central keywords include Internet contract, BGB, declaration of intention, offer, acceptance, online-auction, and consumer protection.
How is the legal status of an e-mail delivery determined under German law?
The paper discusses the "reception theory," arguing that an e-mail is generally considered received when it enters the recipient's "sphere of control," which includes the mailbox, provided the receiver has a reasonable opportunity to notice it.
Are online auctions automatically subject to § 156 BGB?
The paper concludes that § 156 BGB is not universally applicable, particularly to "long time auctions," due to the lack of an auctioneer and the traditional fall of the hammer; thus, each form of auction must be judged individually.
- Quote paper
- Jonas Vincentz (Author), 2004, Contracting on the Internet, Munich, GRIN Verlag, https://www.grin.com/document/38647
