There are a number of ways an electronic contract can be executed:
• Clicking a checkbox to acknowledge agreement.
• Typing yes or I agree in a form online.
• Signing a document with a stylus or your finger.
• Using a facility such as DocuSign to electronically sign a document.
These contracts are considered legally binding, provided they meet the usual requirements under a contract relating to:
• Offer,
• Acceptance, and
• Consideration.
The Electronic Transactions Act 2000 (NSW) stipulates that an agreement can be in writing if it is given by electronic communication. (Paperless)
There are provisions within the act to stipulate that if a person consents to a method of electronic signature and intends that signature to be their consent to the contract then it will be as binding as a written signature on paper.
Quite a few organisations have adopted electronic contracts even banks have adopted electronic contracts for loan agreements.
Contracts for the sale of land can be electronic too.
Electronic contracts for conveyancing can increase the speed and efficiency of a transaction.
During these unprecedented times, many Real Estate Agents will be utilizing electronic contracts. The vendor or purchaser can access the electronic contract through a secure client portal. This document can then be signed electronically and available to the solicitor immediately.
If you require any further information please do not hesitate to contact our office.