Types of Contracts Related to Electronic Commerce
Electronic commerce enables access to internet based networks. As a result, the technical presence of both the supplier and the buyer on such networks is unavoidable. For this purpose, the supplier must enter into a hosting or server placement agreement unless this function is undertaken internally. Similarly, the buyer must enter into an access agreement to participate in electronic transactions.
Important Legal Considerations in Drafting Online Contracts
Electronic commerce gives rise to specific types of commercial contracts, the most significant of which include the following:
- Website development contract.
- Gateway contract.
- Marketing or retrieval contract.
- Domain name transfer contract.
- Certificate issuance contract.
Website Development Contract
A website functions as a virtual storefront in cyber commerce. The creation of a suitable graphical interface to present the identity of a business, the valuation and presentation of a trademark, and the deployment of software capable of performing essential catalog functions such as product display, purchase pathways, order reception, payment processing, and order tracking are among the preliminary steps required for conducting electronic commerce.
A website development contract contains technical aspects that make it similar to a software development agreement and is classified as a form of contractor agreement. It should be noted that ownership of a dedicated server is not always necessary, as a merchant’s website may be hosted through external services. However, large scale commercial operations typically require a server, making the conclusion of a system hosting contract essential.
Gateway Contract
The number of entities engaged in internet based commerce is substantial. Internet users interested in specialized searches within categories such as travel, automobiles, or food increasingly prefer aggregator websites, commonly referred to as gateways or portals. These gateway websites direct users toward target websites that are registered members of the main platform.
Accordingly, a gateway contract is a membership agreement that enables websites lacking sufficient independent advertising capabilities to gain visibility within the network. Membership in a frequently visited gateway increases the number of visitors and, consequently, the potential customer base of the target website.
Marketing and Retrieval Contract
Most internet users rely on search engines such as Google, Yahoo, and similar platforms to locate desired content. These search engines continuously gather and update information about websites, particularly those linked to them. Based on user queries, the system displays lists of websites that correspond to specific needs.
For commercial websites, it is critically important to appear in favorable positions, particularly on initial result pages and at the top of listings. For this reason, such agreements are also referred to as placement contracts. One method involves entering into a direct-retrieval contract with a search engine, under which commercial links are displayed in response to certain queries. This method is often costly.
Alternatively, merchants may independently analyze search engine algorithms to improve their visibility. However, this requires significant time and expertise, and operators of commercial websites are not necessarily specialists in this field. Therefore, engaging professional marketing service providers to improve website visibility has become increasingly necessary.
The subject of a retrieval or marketing contract is the determination of conditions under which the service provider ensures that the client’s website is indexed by search engines, gateway websites, or electronic directories. The objective is first to ensure inclusion among the target websites and, subsequently, to achieve optimal visibility.
Agreements Related to Domain Names
A domain name may be regarded as a distinctive digital identifier of an electronic merchant. Accordingly, it has economic value and is subject to negotiation. Consequently, contracts concerning the purchase or transfer of well known domain names within specific commercial sectors are common.
Certificate Issuance Contract
A certificate issuance contract establishes a legal relationship between a merchant and an authorized intermediary for the purpose of issuing electronic certificates. Under this contract, users receive assurance that the merchant’s public keys are properly registered, thereby increasing trust.
Certificate issuance refers to the provision of advanced electronic signatures. Legal texts, particularly legislation enacted on March 30, 2001, establish mandatory conditions for obtaining authorization as a certification authority.
Contracts offered in this context are generally adhesion contracts. Nevertheless, such contracts do not eliminate contractual freedom with respect to evidentiary matters.
Frequently Asked Questions About Contracts Related to Electronic Commerce
This contract is concluded for the design and development of a commercial website and includes technical aspects such as graphical interface design, product catalog creation, purchase pathways, order reception, and payment processing. It is generally classified as a software related contractor agreement.
This contract permits smaller or emerging websites to become members of high-traffic gateway platforms, thereby increasing visibility and attracting more potential customers.
This contract is designed to improve a website’s position in search engine results and enhance visibility on initial pages. Its purpose is to increase website traffic through search engine optimization and digital marketing.
A domain name functions as a digital trademark. Contracts governing the purchase or transfer of goods define ownership and have significant economic value in electronic commerce.
This contract enables an authorized intermediary to issue electronic certificates, including advanced electronic signatures, which enhance user trust and ensure secure electronic transactions. What is a website development contract and what is its purpose?
What role does a gateway or membership contract play in electronic commerce?
What is a marketing or retrieval contract?
Why is a domain name transfer contract economically important?
What is a certificate issuance contract in electronic commerce?
