Blog Post

Could Your Email Form a Binding Contract?

> Blog > Business Law > Could Your Email Form a Binding Contract?
Two Computer Device and Hands in handshaking, Incernet Working Concept, Wireless Communication, Online Business

Email Form a Binding Contract.

Legally Binding Contract Basics

The Internet has changed the way businesses negotiate, review and revise their contracts. Sending emails back and forth can make the process faster and more convenient, but you should be aware that it can also lead to inadvertent liability. The use of electronic evidence or digital data has drastically increased in courtrooms across the country. Thus, before you click “send” on that email, stop and consider the legal consequences. Your email correspondence could be used as proof (or to disprove) the existence of a contract.

According to the Uniform Electronic Transactions Act of 1999, electronic records can form a legally binding contract. The necessary elements of contract formation must be present for the agreement to be binding. This means there must be an offer, acceptance and an exchange of consideration between the parties. However, if the electronic evidence is sufficient to prove that these basic elements have been met, your email exchange could be used to prove that the parties intended to form a contract and to be bound by it.

It is important for business owners to take steps to protect themselves when negotiating contracts by email. Your business should have clear and concise policies regarding email exchanges. All employees should be properly trained on these policies so they understand how to handle their electronic correspondence with other parties.

It should be mandatory for all emails to have a prepared, blanket disclaimer paragraph that is automatically inserted into each email that is sent. The disclaimer should include language that specifically states that the author of the email does not have authority to legally bind the company. The disclaimer should also state that your business does not intend to be bound by an electronic agreement and that any email correspondence should be considered non-binding until the contract has been signed by all parties.

Lastly, if you believe the other party is relying on your email exchanges as the formation of a binding agreement, set the record straight immediately. The faster you clear up any misunderstandings, the less likely you are to be held liable.

We’re Here to Protect You

Are holes in your legal, insurance, financial and tax foundation causing money to leak out of your business? If you are ready to identify and patch the holes, contact us today for a LIFT Foundation Audit, during which we’ll find the legal, insurance, financial and tax money leaks in your business and create a plan to shore them up so you can keep more money and grow your business with less risk.

COVID-19 Legal Alerts and Stimulus Package Updates

KCKW LLP remains at the forefront of updates related to the government $2tn stimulus.  Please provide your contact information so that we may keep you up to date with the most relevant information to help support you and your business.

Contact Us

We want you to feel comfortable discussing your legal issue with us, so we offer a free consultation to learn about your problem. Contact us today to setup a time to come in and talk with our team.

Our Firm Locations

Anaheim Hills

Kundani Chang Khinda Wilson, LLP

155 N. Riverview Drive Suite 212,
Anaheim, CA 92808
Get Directions 714-525-2400

Los Angeles

Kundani Chang Khinda Wilson, LLP

611 Wilshire Blvd #325,
Los Angeles, CA 90017
Get Directions 213-627-2771

San Gabriel

Kundani Chang Khinda Wilson, LLP

8810 East Las Tunas Drive,
San Gabriel, CA 91776
Get Directions 714-525-2400

Union City

Kundani Chang Khinda Wilson, LLP

2 Union Square #102,
Union City, CA 94587
Get Directions 714-525-2400

Contact Us Today

We want you to feel comfortable discussing your legal issue with us, so we offer a free consultation to learn about your problem. Contact us today to setup a time to come in and talk with our team.