E-mail contracts: As binding as your signature

E-mails about a contract could be considered binding, law firm Webber Wentzel said yesterday. The firm referred to a Supreme Court of Appeal (SCA) ruling last month that found e-mail negotiations and typed e-mail signatures binding. “Given the pervasive use of e-mail in the workplace and in commercial interactions it is important to exercise caution,” Webber Wentzel technology, media, and telecommunications head Robby Coelho said. The SCA judgment on November 21 saw it uphold an appeal by Spring Forest Trading against Wilberry. Terms of their deal cancellation were recorded in an e-mail exchange and the names of the parties appeared at the bottom of each e-mail. Spring Forest then entered into a similar business agreement with another entity. Wilberry approached the Durban High Court to interdict its business pending an application for breach of contract. The high court granted the interdict and Spring Forest appealed to the SCA. The SCA upheld the appeal on the basis that contracts could consensually be cancelled via e-mail, and referred to provisions of the Electronic Communications and Transactions Act. – Sapa