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electronic communication, Slides of Business and Labour Law

Sol Plaatje universityBusiness and Labour Law

elecronic communication of business

Typology: Slides

2025/2026

Uploaded on 05/18/2026

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Electronic Commerce –the ECT Act
•The Electronic Communications and Transactions Act 25 (the ECT Act) of 2002 was enacted to
address legal uncertainty surrounding the use of modern information and communication
technologies (ICTs), such as the internet and cellular telephones for business transactions.
•Parties involved in electronic commerce were concerned that technology had outpaced the existing legal
framework.
•There are also other statutes directly affecting ICTs, namely the Regulation of Interception of
Communications and Provision of Communication-related Information Act 70 of 2002 (the RIC
Act), The National Credit Act 34 of 2005 and the Consumer Protection Act 68 of 2008.
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Electronic Commerce – the ECT Act

•The Electronic Communications and Transactions Act 25 (the ECT Act) of 2002 was enacted to address legal uncertainty surrounding the use of modern information and communication technologies (ICTs), such as the internet and cellular telephones for business transactions.

  • Parties involved in electronic commerce were concerned that technology had outpaced the existing legal framework. •There are also other statutes directly affecting ICTs, namely the Regulation of Interception of Communications and Provision of Communication-related Information Act 70 of 2002 (the RIC Act ), The National Credit Act 34 of 2005 and the Consumer Protection Act 68 of 2008.

Electronic Commerce – the ECT Act

•One of the most important aspects of the ECT Act is the validation of

electronic data (SMS messages, e-mails etc)

•The effect of this is that offers made or contracts concluded over the

internet has the same legal validity as offers and contracts made on

paper.

•This was confirmed in the case of Mncube v Transnet (2009) 30 ILJ 698

CCMA where an offer of employment by Transnet sent to Mncube by

SMS was held to be valid.

  • The SMS sent on 1 December 2007 to Mr Mncube to commence his duties on 3 rd Dec 2007. The CCMA held that Mncube concluded the contract when he reported for work on that date.

Electronic Commerce – the ECT Act

  • The application of the Reception theory was confirmed in the case of

Jafta v Ezemvelo KZN Wildlife (2009) 30 ILJ 131 (LC).

Held : The court held that an e-mail message sent by Jafta to Ezemvelo,

accepting an offer of employment, had not been received by Ezemvelo

because it had not entered Ezemvelo’s information system.

Classes of online contracts ……..contd.

A. Shrink wrap agreements

  • Shrink wrap agreements are typically encountered when buying and selling software.
  • Shrink wrap agreement is alegal agreement that is packaged within a product.
  • In this type of agreement, products are sealed or enclosed in shrink wrap (plastic wrap) implying that the goods (and thus the legal document) can only be viewed by the customer who purchases it.

Classes of online contracts ……..contd.

C. Browse-wrap Agreements

  • This is another common agreement concluded over the internet,
  • Here, the user is not required to click on words or an image, instead the terms and conditions are often referred to at the top or bottom of the website page (often not very clearly). - Example ‘ the use of this website is subject to our standard terms and conditions.’
  • Apart from the ECT Act, common law principles relating to tickets, notices and standard forms contracts are applicable.

Consumer protection under the ECT Act.

•The Act caters for the consumer who purchases goods and services online by providing for six fundamental consumer protections, namely: 1.Information •18 pieces of disclosure must be made available on the website. This includes information about membership of any self-regulatory body to which the supplier belongs; details of any code of conduct to which the supplier subscribes to, details of the terms of the agreement including guarantees that apply to the transactions and how they may be accessed, alternative dispute resolution, exchange and refund policy etc

Consumer protection under the ECT

Act….. contd

  1. Cooling off period •A consumer may cancel without reason and without penalty any electronic transaction entered into within seven days from receipt of the goods or services.
  2. Unsolicited goods, services or communications or ‘spam’ •The supplier must ensure that the consumer is provided with the option to unsubscribe from the mailing list by means of an accessible unsubscribe procedure.

Consumer protection under the ECT

Act…..contd

6. Prompt performance

•The supplier must ensure that the order is met within 30 days after

the day on which the supplier received the order unless the parties

have agreed otherwise.