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Record Keeping for Digital Contracts
Abstract
A challenge in electronic commerce is to keep proper records of business contracts made over the Internet. A common type of contract is a purchase order that a buyer places on a vendor using the Web or a private network. The government has to step in to adjudicate disputes if and when they arise. It is in the public’s interest, therefore, that formal and indisputable methods are developed for recording contracts digitally. On June 30, 2000, the Electronic Signatures in Global and National Commerce Act (E-sign Act) was passed in USA, and it legalized electronic signatures in contracts. This paved the way for the rapid growth in electronic commerce which is estimated to be $3.2 trillion in the USA (Freeman, 2004). With this sizable business, it is very likely that disputes involving electronic contracts arise. In this article, we suggest a few models and processes for creating and storing authentic contract documents so that future disputes can be settled more effectively.
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