THE VALIDITY OF ELECTRONIC AGREEMENTS IN SALES TRANSACTIONS VIA MARKETPLACES AS EXAMINED UNDER ARTICLE 1320 OF THE CIVIL CODE AND THE LAW ON INFORMATION AND ELECTRONIC TRANSACTIONS
DOI:
https://doi.org/10.5281/zenodo.23102993Keywords:
electronic contracts, marketplaces, Article 1320 of the Civil Code, the ITE Act, sales and purchase transactions, electronic evidenceAbstract
Advances in information technology have driven a shift in buying and selling practices from conventional systems to electronic transactions via online marketplaces. This shift has raised legal issues regarding the validity of agreements entered into without a face-to-face meeting and without physical documents between the seller and the buyer. This study aims to analyse the validity of electronic contracts in sales and purchase transactions via online marketplaces based on Article 1320 of the Civil Code (KUHPerdata) and the Law on Information and Electronic Transactions (UU ITE). This study employs a literature review method using a juridical-normative approach. The results of the study indicate that electronic contracts in marketplace transactions are valid and binding provided they fulfil the four requirements of Article 1320 of the Civil Code, namely agreement, legal capacity, a specific subject matter, and a lawful cause. The Electronic Information and Transactions Act (UU ITE) recognises electronic contracts and affirms that electronic information, electronic documents and their printed copies may be used as valid legal evidence. Consequently, the absence of physical documents or wet signatures does not invalidate an electronic contract, provided that the transaction process, the identities of the parties, the subject matter of the contract and the integrity of the electronic evidence can be accounted for.
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