Under the Electronic Transactions Act 1999 (Cth), a contract is formed:

Question

BlackTom AI · Accepted Answer

The question asks about when a contract is formed under the Electronic Transactions Act 1999 (Cth).
Option 1: 'When the offeror reads the offeree's email.' This is not consistent with standard contract formation rules under the Act, which focus on when the acceptance is communicated, not merely when read.
Option 2: 'When the offeree's email is opened and printed out.' Physical access or printing does not constitute formation; the statute looks at receipt at the designated point of communication, not physical handling.
Option 3: 'When the acceptance is sent to the offeror's email address.' Sending and dispatch are important, but the Act emphasizes the point at which the acceptance is received at the designated system or server, not merely when sent.
Option 4: 'When the acceptance is received at the server specified by the offeror.' This aligns with the principle that formation occurs at the moment of receipt by the specified server or system, thereby satisfying the acceptance provisions under the Act.
In summary, the key concept is that electronic acceptances become binding when properly received at the recipient's designated electronic receiving point, rather than at the sender’s location, at the moment of sending, or at mere viewing or printing. The remaining options misstate the critical timing or the required recipient point, leading to incorrect conclusions about when formation occurs.

77942 Legal Aspects of Contracts Administration - Autumn 2025 Module 4 Quizz

Under the Electronic Transactions Act 1999 (Cth), a contract is formed:

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