BAEB 301 : BASIC LAW FOR E-BUSINESS

CHAPTER 3: ELECTRONIC COMMERCE

ACT 2006 (ECA 2006)
Chapter 3: Electronic Commerce Act 2006 (ECA 2006)

Topic Outlines

3.1 Overview of the Electronic Commerce Act 2006 (ECA 06)

3.2 Rules of the ECA 06

Slide 2 of 8
Chapter 3: Electronic Commerce Act 2006 (ECA 2006)

Learning Outcomes

At the end of this chapter, students should be able to:

 Understand the purpose Malaysian Parliament passes the Electronic
Commerce Act 2006 and the importance of giving legal recognition to
electronic transactions
 Understand that the Electronic Commerce Act 2006 complements the
Contracts Act 1950
 Understand the right of any individual to agree or reject electronic
transactions.

Slide 3 of 8 Topics
Chapter 3: Electronic Commerce Act 2006 (ECA 2006)

3.1 Overview of the ECA 2006

1. In Malaysia the ECA 2006 give legal recognition to

electronic contracts i.e. commercial transaction conducted
through electronic means.

2. ECA 2006 complements the Contract Act 1950.

3. ECA 2006 insists that consent must be obtained for a

person to use, provide or accept any electronic message
in any commercial transaction.
4. Consent can be inferred. E.g. one hands over a business
card with email address to another or by placing an order
through the internet

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Chapter 3: Electronic Commerce Act 2006 (ECA 2006)

3.2 Rules of the ECA 2006

1. All transactions in electronic means are legally recognised

whether totally or partly in an electronic form.

2. Terms and conditions of electronic contracts can be

incorporated on separate web pages accesible via
hyperlink.

3. In the formation of a contract communication of offer,

acceptance, revocation of offers and acceptance, or any
related communication can be by electronic means.

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Chapter 3: Electronic Commerce Act 2006 (ECA 2006)

3.2 Rules of the ECA 2006

4. If the contract has to be in writing, then the writing

requirement of the law is fulfilled if the information is
contained in an electronic message that is accessible
and intelligible so as to be usable for subsequent
reference.

e.g. hire-purchase contract must be in writing and

signed by the parties. If this requirement is not
complied with then the agreement is void.

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Chapter 3: Electronic Commerce Act 2006 (ECA 2006)

3.2 Rules of the ECA 2006

5. Where any law requires a signature of a person on a

document, the requirement of the law is fulfilled, if the
document is in the form of an electronic message, by
electronic signature.

6. Communication of electronic message is deemed to be

that of the originator if it is sent by a person who has the
originator’s authority or sent by the originator’s Internet
Service Provider (ISP).

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Chapter 3: Electronic Commerce Act 2006 (ECA 2006)

3.2 Rules of the ECA 2006

7. An electronic message is deemed sent when it enters an

information processing system outside the control of the
originator.

8. The time of receipt of an electronic communication is the

time when it becomes capable of being retrieved by the
addressee at an electronic address designated by the
addressee, such as at the addressee’s electronic address.

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