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Law for New Zealand Business - LAWS541

Contract and Commercial Law Act 2017

(in force 1 Sep 2017)

Part 4

Electronic transactions

Subpart 1—Preliminary provisions

207 Purpose

The purpose of this Part is to facilitate the use of electronic technology by—

(a) reducing uncertainty regarding—

(i) the legal effect of information that is in electronic form or that is

communicated by electronic means; and

(ii) the time and place of dispatch and receipt of electronic communications; and

(b) providing that certain paper-based legal requirements may be met by

using electronic technology that is functionally equivalent to those legal

requirements.

213 Time of dispatch

(1) An electronic communication is taken to be dispatched at the time the electronic communication first enters an information system outside the control of the originator.

(2) For the purposes of this section and section 214, information system means a

system for producing, sending, receiving, storing, displaying, or otherwise processing electronic communications.

214 Time of receipt

An electronic communication is taken to be received,—

(a) in the case of an addressee who has designated an information system

for the purpose of receiving electronic communications, at the time the

electronic communication enters that information system; or

(b) in any other case, at the time the electronic communication comes to the

attention of the addressee.

215 Place of dispatch

An electronic communication is taken to be dispatched from—

(a) the originator’s place of business; or

(b) if the originator has more than 1 place of business,—

(i) the place of business that has the closest relationship with the

underlying transaction; or

(ii) if there is no place of business to which subparagraph (i) applies,

the originator’s principal place of business; or

(c) in the case of an originator who does not have a place of business, the

originator’s ordinary place of residence.

216 Place of receipt

An electronic communication is taken to be received at—

(a) the addressee’s place of business; or

(b) if the addressee has more than 1 place of business,—

(i) the place of business that has the closest relationship with the

underlying transaction; or

(ii) if there is no place of business to which subparagraph (i) applies,

the addressee’s principal place of business; or

(c) in the case of an addressee who does not have a place of business, the

addressee’s ordinary place of residence.

217 Time of communication of acceptance of offer

(1) For the purpose of the formation of a contract, an acceptance by electronic

communication of an offer is taken to be communicated to the offeror at the

time determined by section 214 to be the time of receipt for that electronic

communication.

(2) Subsection (1) does not apply if—

(a) the parties to the contract otherwise agree; or

(b) an enactment provides otherwise.

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