Contracting in Cyber Space: A Comparative Analysis of Electronic Transaction Law in Sri Lanka

Abstract

In the last few decades the means and methods of traditional face to face contracts have been changed significantly. The most influential factor for this drastic change is the rapid development of information technology as well as the internet. As a result of that, contracting in cyberspace has become more familiar than paper based contracts. However, due to medium differences and other complications there are various difficulties of applicability of traditional contract law principles in electronic contracts as it is. Therefore, it has been recognized that there should be a separate law to address these issues in electronic transactions in both international and domestic levels. Sri Lanka has become one of the foremost country in South Asian region, which enacted separate piece of legislation to govern the e-transaction related issues. As a result of that, the Electronic Transaction Act No 19 of 2006 has been enacted by our Parliament. Primarily, this Act has followed the UNCITRAL Model Law on Electronic Commerce as well as the United Nations Convention on the Use of Electronic Communications in International Contracts. Even though the Sri Lankan law has demonstrated a progressive approach towards introducing a legal framework for electronic transactions, there are some gaps in relating to data protection, privacy and consumer protection. For an example, South African Electronic Communication and Transaction Act in 2002 has particularly addressed some typical problems of consumer protection such as data protection, privacy, trust redress and jurisdictions. Thus, based on that research problem this paper aims to analyze the existing Sri Lankan law, particularly the scope of the Electronic Transaction Act and its compatibility with traditional contract law principles comparing to Indian and South African legal approaches . As well, this paper attempts to emphasize the existing gaps in our legal framework with regards to electronic contracts, in order to suggest the appropriate recommendations . Accordingly, this research has been followed normative approach to collect data from both primary and secondary sources