Question
of the week
Question of the week

Curious. Interesting. Informative.

02 March 2018

Hey, did you get my email?

Sale, Purchase, Mortgage, Lease
Federal

Asked

Conveyancing - Exchange contract by email

Given exchanges often take place by email with the original sent in the mail following exchange, is there a clause that can be put in the Contract to confirm that if the original is not provided by one of the parties, they are still bound?

Answered

Thank you for the question

This subject is dealt with in detail in our Sale and Purchase commentaries.

The common law recognises electronic signatures, but the Electronic Transactions Act 2000 (as enacted throughout Australia) puts beyond doubt that electronic signatures are equivalent to traditional hardcopy signatures. More specifically, the Act provides that a legal requirement for a manual signature can be satisfied with an electronic signature if a reliable method is in place to identify the person and to indicate that the person has approved the information that has been communicated. The reliable method for evidencing the identity of the signatory and their intention to sign electronically is provided by their solicitor’s confirmation that the party has signed electronically and intends to be bound by the contract.

In summary, it is the intention of the signatory to create legal relations indicated by placing their mark on a document that gives a signature its legal character or functionality, not the mark itself.

It is clearly the intention of the parties and their representatives to effect the exchange and it can be relied upon. There is no need for the paper copy.

In NSW and Victoria, the By Lawyers sale of land contract specifically provides for exchange to take place by email, fax or post in compliance with the relevant conveyancing legislation and the electronic transactions legislation. The contract sets out the agreed procedure in detail. Exchange is instantaneous. Each party has a complete PDF of the contract and no follow up paper copies are required.

Regards

Mentor