Skip to content

CMA Foundation · Fundamentals of Business Laws and Business Communication · E-Contracts and E-Signature - Meanings and Requirements

Rohan revokes his online offer to Sunita through an electronic record before she accepts. Sunita argues the revocation is ineffective solely because it was electronic. Based on Section 10A, her argument is:

Her argument is incorrect. Section 10A expressly includes the revocation of proposals and acceptances expressed in electronic form, so using an electronic record for revocation is not by itself a ground to treat the contract as unenforceable.

  1. ACorrect, because revocation must always be oral
  2. BCorrect, because only acceptance may be electronic
  3. CIncorrect, because Section 10A covers revocation expressed in electronic form tooCorrect
  4. DIncorrect, because electronic revocation is valid only with a licence from the Controller

Explanation

Section 10A extends to revocation of proposals and acceptances made by electronic record, so the contract is not unenforceable solely on that ground. The Controller's licence under Section 21 relates to issuing electronic signature Certificates, not to revocation.

Did you get it right without looking?

One question tells you little. A timed set on E-Contracts and E-Signature - Meanings and Requirements shows your real accuracy, how long you take and where you lose marks.

Practise E-Contracts and E-Signature - Meanings and RequirementsFree diagnostic mock

More E-Contracts and E-Signature - Meanings and Requirements questions