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Key Points Buyer's Reliance The 
buyer must rely on the seller's 

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skill or judgement in selecting 
the goods for a particular 

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purpose. 
Seller's Knowledge The seller 

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00:00:10,160 --> 00:00:12,760
must know, or have reason to 
know of the buyer's specific 

5
00:00:12,760 --> 00:00:17,200
purpose and reliance. 
Example A buyer tells a paint 

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00:00:17,200 --> 00:00:20,040
store clerk that they need paint
for an outdoor deck that will be

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00:00:20,040 --> 00:00:23,520
exposed to harsh weather. 
The clerk recommends a specific 

8
00:00:23,520 --> 00:00:26,520
type of paint, creating an 
implied warranty that the paint 

9
00:00:26,520 --> 00:00:28,240
will be suitable for that 
purpose. 

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00:00:28,720 --> 00:00:31,760
If the paint fails to withstand 
the weather, the buyer can claim

11
00:00:31,760 --> 00:00:34,680
a breach of warranty. 
Warranty disclaimers. 

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The UCC allows sellers to 
disclaim or limit warranties 

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00:00:38,320 --> 00:00:41,400
under certain conditions, 
provided the disclaimer is clear

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00:00:41,400 --> 00:00:44,600
and conspicuous. 
Warranty disclaimers are often 

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00:00:44,600 --> 00:00:47,920
used by sellers to limit their 
liability, but they must comply 

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00:00:47,920 --> 00:00:50,280
with specific requirements to be
enforceable. 

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Key points. 
Clear and conspicuous warranty 

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00:00:54,200 --> 00:00:57,640
disclaimers must be clearly 
stated inconspicuous, meaning 

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00:00:57,640 --> 00:01:00,280
they must be presented in a way 
that a reasonable person would 

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00:01:00,280 --> 00:01:02,840
notice. 
Language requirements to 

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00:01:02,840 --> 00:01:05,440
disclaim the implied warranty of
merchant ability. 

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00:01:05,560 --> 00:01:08,640
The disclaimer must specifically
mention merchant ability and be 

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00:01:08,640 --> 00:01:12,720
conspicuous For other implied 
warranties, general language 

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00:01:12,720 --> 00:01:15,240
like is, is, or with all faults 
can be used. 

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00:01:15,720 --> 00:01:19,920
Example A seller includes a 
disclaimer in a contract stating

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00:01:19,920 --> 00:01:22,640
that the goods are sold as is, 
without any warranties. 

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00:01:23,120 --> 00:01:25,920
If the disclaimer is clearly 
stated and understood by the 

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00:01:25,920 --> 00:01:29,040
buyer, it can effectively limit 
the seller's liability. 

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00:01:29,520 --> 00:01:32,640
However, if the disclaimer is 
hidden in fine print or buried 

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00:01:32,640 --> 00:01:34,960
in the terms, it may be 
challenged and deemed 

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unenforceable. 
Breach of warranty If the goods 

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00:01:38,400 --> 00:01:41,200
fail to meet the standards set 
by an express or implied 

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warranty, the buyer may claim a 
breach of warranty and seek 

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00:01:44,400 --> 00:01:46,880
remedies. 
The remedies available to the 

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00:01:46,880 --> 00:01:49,720
buyer depend on the nature of 
the breach and the circumstances

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00:01:49,720 --> 00:01:53,440
of the case. 
Key Points Types of Remedies 

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00:01:53,640 --> 00:01:57,400
Remedies for breach of warranty 
may include repair, replacement,

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00:01:57,480 --> 00:02:01,080
rescission of the contract, or 
damages for any loss resulting 

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00:02:01,080 --> 00:02:04,080
from the breach. 
Notice requirement The buyer 

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00:02:04,080 --> 00:02:07,000
must notify the seller of the 
breach within a reasonable time 

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00:02:07,000 --> 00:02:09,840
after discovering the defect to 
preserve their right to seek 

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00:02:09,840 --> 00:02:13,840
remedies. 
Example A buyer purchases a car 

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00:02:13,840 --> 00:02:16,800
with a warranty that it will be 
free from mechanical defects for

44
00:02:16,800 --> 00:02:19,280
one year. 
The car breaks down within the 

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00:02:19,280 --> 00:02:23,120
warranty period due to a defect.
The buyer can claim a breach of 

46
00:02:23,120 --> 00:02:26,440
warranty and seek repair, 
replacement, or damages. 

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00:02:26,920 --> 00:02:30,240
If the seller fails to address 
the defect, the buyer may also 

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00:02:30,240 --> 00:02:32,960
seek rescission of the contract 
and a refund of the purchase 

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00:02:32,960 --> 00:02:36,160
price. 
Part 2 E Contracts and Digital 

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00:02:36,160 --> 00:02:40,320
Transactions In the digital era,
the landscape of contract 

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00:02:40,320 --> 00:02:43,360
formation has undergone a 
significant transformation. 

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00:02:43,800 --> 00:02:46,560
With the rise of the Internet 
and digital technologies, 

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00:02:46,680 --> 00:02:50,720
contracts are increasingly being
formed, executed, and enforced 

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00:02:50,720 --> 00:02:53,640
online, giving rise to E 
contracts and digital 

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00:02:53,640 --> 00:02:56,400
transactions. 
These developments offer 

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00:02:56,400 --> 00:02:59,320
significant convenience and 
efficiency, but also introduce 

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00:02:59,320 --> 00:03:02,200
unique legal challenges, 
particularly concerning the 

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00:03:02,200 --> 00:03:05,080
formation, validity, and 
enforceability of these 

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00:03:05,080 --> 00:03:07,880
contracts. 
Formation and validity of E 

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00:03:07,880 --> 00:03:10,480
contracts. 
What is an E contract? 

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An E contract is a legally 
binding agreement that is 

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created and signed 
electronically. 

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Unlike traditional contracts, 
which require physical documents

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00:03:19,760 --> 00:03:23,760
and signatures, E contracts are 
formed, executed, and often 

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00:03:23,760 --> 00:03:26,520
stored digitally. 
E contracts have become 

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00:03:26,520 --> 00:03:29,400
ubiquitous in online 
transactions, covering 

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everything from the purchase of 
goods and services to complex 

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00:03:32,240 --> 00:03:35,280
business agreements. 
Common scenarios include 

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00:03:35,280 --> 00:03:39,120
clicking I agree on a website, 
signing a digital document, or 

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00:03:39,120 --> 00:03:42,040
even engaging in a contract via 
e-mail exchanges. 

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E contracts are used in various 
contexts, including e-commerce 

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00:03:47,120 --> 00:03:51,440
transactions, buying goods or 
services, online subscription 

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00:03:51,440 --> 00:03:54,760
services, agreements to 
subscribe to digital content, 

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00:03:54,880 --> 00:03:58,960
software or other services, 
digital content licensing, 

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00:03:59,160 --> 00:04:03,440
licensing agreements for the use
of software, music, videos, et 

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00:04:03,440 --> 00:04:06,720
cetera, employment agreements, 
digital signing of employment 

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00:04:06,720 --> 00:04:08,760
contracts, and related 
documents. 

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00:04:09,280 --> 00:04:12,440
The rise of E contracts has 
necessitated a corresponding 

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00:04:12,440 --> 00:04:15,680
evolution in the legal framework
governing contracts, with 

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00:04:15,680 --> 00:04:18,839
specific considerations unique 
to the digital environment. 

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00:04:19,279 --> 00:04:23,440
Legal framework for E contracts.
E contracts are governed by the 

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same fundamental principles as 
traditional contracts, such as 

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00:04:27,000 --> 00:04:30,480
offer, acceptance, consideration
and mutual assent. 

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However, the digital environment
introduces new dimensions to 

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these principles, particularly 
in how offers are made and 

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00:04:37,480 --> 00:04:40,600
accepted, how consent is given, 
and how signatures are 

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00:04:40,600 --> 00:04:43,280
validated. 
Offer and acceptance in E 

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00:04:43,280 --> 00:04:46,920
contracts The principles of 
offer and acceptance are central

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00:04:46,920 --> 00:04:50,440
to the formation of any 
contract, including E contracts.

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00:04:50,920 --> 00:04:53,920
In the digital context, these 
principles are applied through 

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00:04:53,920 --> 00:04:57,320
various mechanisms that 
facilitate online transactions. 

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00:04:57,800 --> 00:05:02,640
One offer and E contracts An 
offer in an E contract is 

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00:05:02,640 --> 00:05:06,080
typically made when a business 
or individual presence terms and

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00:05:06,080 --> 00:05:09,480
conditions through a website, 
e-mail or digital platform. 

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00:05:09,960 --> 00:05:13,360
For example, an e-commerce 
website offering goods for sale 

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00:05:13,360 --> 00:05:16,280
with a list of terms and 
conditions constitutes an offer.

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00:05:16,760 --> 00:05:21,760
Two acceptance in E contracts 
Acceptance in the context of E 

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00:05:21,760 --> 00:05:25,080
contracts occurs when the user 
agrees to the terms presented. 

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00:05:25,560 --> 00:05:27,480
This can happen through 
different methods. 

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00:05:28,200 --> 00:05:31,320
Click wrap agreements. 
These require users to actively 

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00:05:31,320 --> 00:05:34,160
click a box or a button to 
indicate their acceptance of the

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00:05:34,160 --> 00:05:36,520
terms before proceeding with the
transaction. 

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00:05:36,960 --> 00:05:39,720
This form of agreement is 
considered highly effective in 

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00:05:39,720 --> 00:05:41,600
demonstrating the user's 
consent. 

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00:05:42,080 --> 00:05:45,720
Example Before downloading 
software, a user must click a 

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00:05:45,720 --> 00:05:49,120
box indicating they agree to the
software's terms and conditions.

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00:05:49,560 --> 00:05:52,720
This action forms a binding 
contract as the user has 

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00:05:52,720 --> 00:05:56,760
explicitly accepted the offer. 
Browse Wrap Agreements Unlike 

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00:05:56,760 --> 00:05:59,360
click wrap, rouse wrap 
agreements do not require 

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00:05:59,360 --> 00:06:02,640
explicit acceptance. 
Instead, the terms are made 

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00:06:02,640 --> 00:06:05,840
available for review and the 
users continued use of the 

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00:06:05,840 --> 00:06:08,200
website or service implies 
acceptance. 

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00:06:08,680 --> 00:06:12,320
Example, a website includes a 
link to its terms and conditions

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00:06:12,320 --> 00:06:15,880
at the bottom of the page. 
By continuing to use the site, 

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00:06:15,960 --> 00:06:19,160
the user is deemed to have 
accepted the terms even without 

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00:06:19,160 --> 00:06:21,160
actively clicking an agreement 
button. 

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00:06:21,680 --> 00:06:24,720
The enforceability of E 
contracts hinges on the clarity 

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00:06:24,720 --> 00:06:27,160
and accessibility of the terms 
and the method by which 

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00:06:27,160 --> 00:06:30,360
acceptance is obtained. 
Courts generally uphold the 

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00:06:30,360 --> 00:06:33,240
contracts as long as there is 
clear evidence of offer, 

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00:06:33,240 --> 00:06:36,800
acceptance and mutual assent, 
and the terms are presented in a

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00:06:36,800 --> 00:06:39,520
manner that provides reasonable 
notice to the user. 

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00:06:39,960 --> 00:06:44,280
Example, An e-commerce website 
clearly displays its return 

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00:06:44,280 --> 00:06:46,800
policy before a customer 
completes a purchase. 

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00:06:47,280 --> 00:06:50,160
If the customer later attempts 
to return an item outside the 

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00:06:50,160 --> 00:06:53,480
stated terms and conditions, the
court is likely to uphold the 

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00:06:53,480 --> 00:06:56,680
policy as part of the 
enforceable E contract, provided

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00:06:56,680 --> 00:06:59,320
the customer had an adequate 
notice of these terms before 

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00:06:59,320 --> 00:07:03,480
making the purchase. 
Electronic Signatures Electronic

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00:07:03,480 --> 00:07:06,880
signatures E signatures are a 
crucial component of E 

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00:07:06,880 --> 00:07:09,600
contracts, serving as the 
digital equivalent of 

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00:07:09,600 --> 00:07:12,960
handwritten signatures. 
They indicate a person's intent 

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00:07:12,960 --> 00:07:17,800
to sign a document and can take 
various forms such as type names

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00:07:17,800 --> 00:07:21,560
at the end of an e-mail or 
digital document, scanned images

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00:07:21,560 --> 00:07:24,920
of handwritten signatures, 
clicking a box to indicate 

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00:07:24,920 --> 00:07:29,000
agreement, more advanced forms 
such as biometric data, 

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00:07:29,160 --> 00:07:31,160
fingerprint or facial 
recognition. 

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00:07:31,600 --> 00:07:33,720
Legal recognition of E 
signatures. 

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00:07:34,440 --> 00:07:37,600
E Sign Act The Electronic 
Signatures in Global and 

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00:07:37,600 --> 00:07:41,160
National Commerce Act E Sign is 
a federal law that grants 

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00:07:41,160 --> 00:07:44,200
electronic signatures the same 
legal status as handwritten 

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00:07:44,200 --> 00:07:47,240
signatures. 
This law ensures that contracts 

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00:07:47,240 --> 00:07:49,960
signed electronically are 
legally enforceable across the 

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00:07:49,960 --> 00:07:53,600
United States. 
Example A consumer applies for a

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00:07:53,600 --> 00:07:56,960
loan online and signs the 
agreement using an E signature. 

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00:07:57,480 --> 00:08:00,920
Under the E Sign Act, this 
contract is legally binding, 

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00:08:01,080 --> 00:08:02,920
just as if it had been signed in
ink. 

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00:08:03,400 --> 00:08:08,320
UETA, The Uniform Electronic 
Transactions Act UETA is a Model

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00:08:08,320 --> 00:08:11,640
Law adopted by most states, 
providing a legal framework for 

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00:08:11,640 --> 00:08:13,520
electronic signatures and 
records. 

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00:08:13,960 --> 00:08:17,320
UATA facilitates electronic 
transactions by ensuring that 

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00:08:17,320 --> 00:08:20,440
contracts signed electronically 
are legally enforceable across 

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00:08:20,440 --> 00:08:23,920
state lines. 
Example A business contract 

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00:08:23,920 --> 00:08:26,560
signed electronically by parties
in different states is 

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00:08:26,560 --> 00:08:29,880
recognized as legally valid 
under UATA, ensuring that the 

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00:08:29,880 --> 00:08:32,520
contract is enforceable 
regardless of the physical 

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00:08:32,520 --> 00:08:34,360
locations of the parties 
involved. 

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00:08:34,799 --> 00:08:39,080
Types of electronic signatures. 
Simple electronic signatures. 

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00:08:39,280 --> 00:08:42,679
These are the most basic form, 
such as a type name or a click 

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00:08:42,679 --> 00:08:46,080
on an I agree button. 
While simple, they can still be 

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00:08:46,080 --> 00:08:48,560
legally binding if the intent to
sign is clear. 

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00:08:49,040 --> 00:08:52,160
Example A user types their name 
at the end of an e-mail. 

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00:08:52,160 --> 00:08:55,320
Agreeing to terms. 
This simple electronic signature

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00:08:55,320 --> 00:08:58,360
can be legally binding if it 
reflects the user's intent to 

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00:08:58,360 --> 00:09:02,000
enter into the agreement. 
Advanced electronic signatures. 

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00:09:02,200 --> 00:09:04,640
These include additional 
security features such as 

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00:09:04,640 --> 00:09:08,080
encryption, unique Pins, or 
biometric data to verify the 

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00:09:08,080 --> 00:09:11,320
signer's identity. 
They offer more security and are

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00:09:11,320 --> 00:09:13,640
often used in higher risk 
transactions. 

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00:09:14,120 --> 00:09:17,840
Example, A document signing 
platform uses a combination of a

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00:09:17,840 --> 00:09:20,760
unique password and fingerprint 
recognition to verify the 

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00:09:20,760 --> 00:09:24,120
signer's identity, providing a 
higher level of security and 

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00:09:24,120 --> 00:09:27,440
authenticity. 
Qualified electronic signatures.

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00:09:27,560 --> 00:09:30,800
These are the most secure form 
of E signatures involving 

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00:09:30,800 --> 00:09:33,480
digital certificates issued by a
trusted authority. 

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00:09:33,960 --> 00:09:36,880
Qualified E signatures have the 
highest level of legal 

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00:09:36,880 --> 00:09:39,880
recognition and are often used 
in government or high value 

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00:09:39,880 --> 00:09:43,280
transactions. 
Example A government contract 

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00:09:43,280 --> 00:09:45,920
may require a qualified 
electronic signature 

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00:09:46,080 --> 00:09:48,720
authenticated by a digital 
certificate from a trusted 

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00:09:48,720 --> 00:09:51,880
provider, ensuring the highest 
level of legal security. 

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00:09:52,360 --> 00:09:55,920
Challenges in E Contract 
formation While E contracts 

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00:09:55,920 --> 00:09:58,920
offer significant convenience, 
they also present unique 

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00:09:58,920 --> 00:10:01,800
challenges, particularly in 
ensuring that the terms are 

185
00:10:01,800 --> 00:10:04,640
clearly communicated and 
understood by all parties 

186
00:10:04,640 --> 00:10:07,120
involved. 
These challenges can impact the 

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00:10:07,120 --> 00:10:09,680
validity and enforceability of E
contracts. 

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00:10:10,160 --> 00:10:14,040
Clarity and Accessibility The 
terms of an E contract must be 

189
00:10:14,040 --> 00:10:16,640
presented in a manner that is 
clear and accessible to the 

190
00:10:16,640 --> 00:10:19,320
user. 
Ambiguous or hidden terms can 

191
00:10:19,320 --> 00:10:21,680
lead to disputes over the 
contract's validity, 

192
00:10:21,800 --> 00:10:25,160
particularly if the user was not
adequately informed of the terms

193
00:10:25,160 --> 00:10:29,840
before accepting them. 
Key Issues Ambiguity Vague or 

194
00:10:29,840 --> 00:10:32,880
unclear terms can create 
confusion and lead to disputes 

195
00:10:32,880 --> 00:10:34,800
over what was actually agreed 
upon. 

196
00:10:35,240 --> 00:10:38,320
Hidden terms Terms that are 
buried in lengthy documents or 

197
00:10:38,320 --> 00:10:41,640
not prominently displayed may be
challenged in court, especially 

198
00:10:41,640 --> 00:10:44,760
if they contain critical clauses
such as arbitration agreements 

199
00:10:44,760 --> 00:10:49,360
or liability waivers. 
Example An online retailer 

200
00:10:49,360 --> 00:10:52,040
includes a hidden arbitration 
clause in its terms and 

201
00:10:52,040 --> 00:10:54,680
conditions. 
If a customer later sues the 

202
00:10:54,680 --> 00:10:57,920
retailer, they may challenge the
enforceability of the clause if 

203
00:10:57,920 --> 00:11:00,840
it was not clearly presented at 
the time of the transaction. 

204
00:11:01,280 --> 00:11:03,880
Courts may find that the 
customer did not have sufficient

205
00:11:03,880 --> 00:11:06,360
notice of the arbitration 
clause, rendering it 

206
00:11:06,360 --> 00:11:09,960
unenforceable. 
Informed Consent For an E 

207
00:11:09,960 --> 00:11:13,080
contract to be valid, the user 
must have the opportunity to 

208
00:11:13,080 --> 00:11:15,080
review the terms before 
accepting them. 

209
00:11:15,560 --> 00:11:18,320
Informed consent is a 
cornerstone of contract law, 

210
00:11:18,320 --> 00:11:21,360
ensuring that all parties are 
fully aware of and agree to the 

211
00:11:21,360 --> 00:11:24,840
terms of the contract. 
In the digital context, this 

212
00:11:24,840 --> 00:11:27,720
means that users must be given a
clear opportunity to read the 

213
00:11:27,720 --> 00:11:29,600
terms and conditions before 
clicking. 

214
00:11:29,600 --> 00:11:32,360
I agree or taking any other 
action that signifies 

215
00:11:32,360 --> 00:11:36,120
acceptance. 
Challenges Click Wrap versus 

216
00:11:36,120 --> 00:11:38,960
Browse wrap Click wrap 
agreements generally provide 

217
00:11:38,960 --> 00:11:42,040
stronger evidence of informed 
consent because the user must 

218
00:11:42,040 --> 00:11:46,160
actively indicate acceptance. 
Browse wrap agreements which do 

219
00:11:46,160 --> 00:11:49,840
not require explicit consent can
be more problematic if the terms

220
00:11:49,840 --> 00:11:52,480
are not clearly visible or 
easily accessible. 

221
00:11:52,960 --> 00:11:56,040
Review Opportunity. 
Users must be given sufficient 

222
00:11:56,040 --> 00:11:58,280
time and opportunity to review 
the terms. 

223
00:11:58,760 --> 00:12:01,440
If the terms are presented in a 
way that discourages thorough 

224
00:12:01,440 --> 00:12:05,560
review, for example, excessive 
length, complex language, the 

225
00:12:05,560 --> 00:12:10,000
contract may be challenged. 
Example, A software user 

226
00:12:10,000 --> 00:12:13,040
installs an application without 
being given the chance to review

227
00:12:13,040 --> 00:12:16,200
the license agreement. 
If the user later disputes the 

228
00:12:16,200 --> 00:12:19,880
terms, the court may find the E 
contract unenforceable due to 

229
00:12:19,880 --> 00:12:22,880
the lack of informed consent, 
particularly if the terms 

230
00:12:22,880 --> 00:12:25,680
included significant 
restrictions or obligations that

231
00:12:25,680 --> 00:12:30,160
the user was not made aware of. 
Electronic Signatures What is an

232
00:12:30,160 --> 00:12:33,680
electronic signature? 
An electronic signature E 

233
00:12:33,680 --> 00:12:37,200
signature is a digital mark that
indicates a person's intent to 

234
00:12:37,200 --> 00:12:39,960
sign a document. 
E signatures have become a 

235
00:12:39,960 --> 00:12:42,960
standard method of executing 
contracts and other legal 

236
00:12:42,960 --> 00:12:45,880
documents in the digital age, 
offering a convenient 

237
00:12:45,880 --> 00:12:48,400
alternative to traditional 
handwritten signatures. 

238
00:12:48,840 --> 00:12:53,400
They can take various forms, 
including type names, signing a 

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document by typing a name or 
initials, scanned images, 

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uploading a scanned image of a 
handwritten signature, clicking 

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to agree, clicking a box to 
indicate agreement. 

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Commonly used in online 
transactions. 

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Biometric signatures using 
biometric data like fingerprints

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or facial recognition as a 
signature. 

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Legal recognition of E 
signatures. 

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E signatures are recognized and 
enforceable under various laws, 

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which provide a legal framework 
ensuring that electronically 

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signed documents hold the same 
weight as traditionally signed 

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ones. 
One E Sign Act the Electronic 

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Signatures in Global and 
National Commerce Act E sign is 

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a federal law that grants 
electronic signatures the same 

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legal status as handwritten 
signatures. 

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Passed in 2000, the E sign Act 
was a landmark law that enabled 

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the widespread adoption of E 
signatures in business and legal

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transactions across the United 
States. 

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Example. 
A consumer applies for a 

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mortgage online and signs the 
agreement using an E signature. 

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The loan contract is legally 
binding under the E Sign Act, 

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just as if the consumer had 
signed a paper document. 

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Two. 
UETA, The Uniform Electronic 

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Transactions Act UETA is a Model
Law adopted by most U.S. states 

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providing a legal framework for 
electronic signatures and 

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records. 
UETA complements the E Sign Act 

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by establishing standards for 
the use of E signatures at the 

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state level. 
Example a business contract is 

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signed electronically by parties
located in different states. 

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UATA ensures that the contract 
is legally enforceable across 

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state lines, providing 
consistency and legal clarity. 

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Types of electronic signatures E
Signatures can vary in 

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complexity and security, ranging
from simple digital marks to 

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highly secure authenticated 
signatures. 

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One simple electronic 
signatures. 

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These are the most basic form of
E signatures, typically 

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involving a type name or a click
on an I agree button. 

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While simple, these signatures 
can be legally binding if they 

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clearly reflect the signer's 
intent to enter into the 

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agreement. 
Example, a user types their name

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at the end of an e-mail agreeing
to the terms of a contract. 

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This simple electronic signature
can be legally binding if it is 

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clear that the user intended to 
sign the document. 2 Advanced 

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Electronic Signatures Advanced E
signatures offer enhanced 

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security features such as 
encryption, unique Pins, or 

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biometric data, for example, 
fingerprints or facial 

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recognition. 
These signatures provide a 

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higher level of security and are
often used in transactions 

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requiring greater authenticity. 
Example A document signing 

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platform uses a combination of a
unique password and fingerprint 

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recognition to verify the 
signer's identity. 

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This advanced E signature 
ensures that the document is 

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00:15:42,560 --> 00:15:45,320
signed by the intended party and
provides a higher level of 

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00:15:45,320 --> 00:15:50,800
trust. 3 Qualified electronic 
Signatures These are the most 

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secure form of E signatures 
involving digital certificates 

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issued by a trusted authority. 
Qualified E signatures provide 

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the highest level of legal 
recognition and are often 

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00:16:00,960 --> 00:16:03,440
required for government 
contracts or high value 

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transactions. 
Example, A government contract 

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requires a qualified electronic 
signature authenticated by a 

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00:16:10,440 --> 00:16:12,840
digital certificate from a 
trusted provider. 

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This ensures that the signature 
is legally binding and secure. 

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Advantages and challenges of E 
signatures E signatures offer 

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significant benefits but also 
come with challenges that need 

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00:16:24,000 --> 00:16:26,280
to be addressed to ensure 
they're effective and secure. 

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00:16:26,280 --> 00:16:30,760
Use advantages. 
One convenience. 

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00:16:31,480 --> 00:16:34,280
E Signatures allow documents to 
be signed quickly and 

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00:16:34,280 --> 00:16:37,440
efficiently, often without the 
need for physical presence. 

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00:16:37,880 --> 00:16:40,600
This convenience is particularly
valuable in business 

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00:16:40,600 --> 00:16:43,080
transactions where time is of 
the essence. 

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00:16:43,560 --> 00:16:46,200
Example. 
A real estate agent and client 

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00:16:46,200 --> 00:16:48,760
sign a property purchase 
agreement electronically, 

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00:16:48,880 --> 00:16:51,920
expediting the transaction 
process and allowing the deal to

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00:16:51,920 --> 00:16:54,520
close more quickly than if they 
had to meet in person. 

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Two security advanced E 
signatures offer enhanced 

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00:16:59,360 --> 00:17:02,480
security features such as 
encryption and multi factor 

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00:17:02,480 --> 00:17:05,000
authentication reducing the risk
of fraud. 

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00:17:05,000 --> 00:17:07,720
Ensuring that the document is 
signed by the correct party. 

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00:17:08,200 --> 00:17:12,359
Example A financial institution 
uses encrypted E signatures to 

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00:17:12,359 --> 00:17:15,319
secure loan agreements 
protecting sensitive customer 

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00:17:15,319 --> 00:17:17,920
information and ensuring that 
the agreement is legally 

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00:17:17,920 --> 00:17:23,319
binding. 3 Cost effective E 
signatures eliminate the need 

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00:17:23,319 --> 00:17:27,240
for paper postage and physical 
storage, reducing overall costs 

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00:17:27,280 --> 00:17:29,800
associated with document 
handling and storage. 

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00:17:30,320 --> 00:17:34,560
Example A company transitions to
E signatures for all contracts, 

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00:17:34,720 --> 00:17:37,680
significantly lowering 
operational expenses related to 

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00:17:37,680 --> 00:17:40,520
printing, mailing, and storing 
paper documents. 

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Challenges. 1 Technology 
barriers. 

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Not all parties may have access 
to the technology required to 

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00:17:48,840 --> 00:17:52,520
create or verify E signatures, 
particularly in regions with 

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00:17:52,520 --> 00:17:56,120
limited Internet access or among
populations less familiar with 

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00:17:56,120 --> 00:17:59,680
digital tools. 
Example, A small business lacks 

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00:17:59,680 --> 00:18:03,160
the resources to implement 
advanced E signature technology,

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00:18:03,280 --> 00:18:06,000
leading to reliance on 
traditional signatures and 

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00:18:06,000 --> 00:18:10,560
potentially slowing down 
transactions. 2 Legal disputes 

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00:18:11,280 --> 00:18:14,760
The validity of E signatures can
be contested, especially if the 

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00:18:14,760 --> 00:18:18,160
process was not transparent, if 
authentication methods were 

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00:18:18,160 --> 00:18:20,840
weak, or if there was doubt 
about the signer's intent. 

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00:18:21,320 --> 00:18:24,680
Example A contract signed 
electronically is challenged in 

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00:18:24,680 --> 00:18:27,240
court due to questions about the
signer's identity. 

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00:18:27,240 --> 00:18:29,760
Consent. 
The court must determine whether

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00:18:29,760 --> 00:18:32,800
the E signature process provided
sufficient evidence of the 

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00:18:32,800 --> 00:18:37,200
signer's intent to be bound by 
the contract. 3 Compliance 

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00:18:37,200 --> 00:18:41,080
issues E signatures must comply 
with specific legal 

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00:18:41,080 --> 00:18:43,800
requirements, which can vary by 
jurisdiction. 

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00:18:44,320 --> 00:18:47,440
Ensuring compliance with these 
regulations can be complex, 

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00:18:47,560 --> 00:18:50,880
especially for multinational 
corporations operating across 

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00:18:50,880 --> 00:18:54,480
different legal systems. 
Example, A multinational 

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00:18:54,480 --> 00:18:57,520
corporation must ensure that 
it's E signature practices 

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00:18:57,520 --> 00:19:01,080
comply with both US and European
regulations, which may have 

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00:19:01,080 --> 00:19:03,960
different standards for the use 
and validation of electronic 

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00:19:03,960 --> 00:19:07,600
signatures. 
Online terms and conditions What

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00:19:07,600 --> 00:19:11,520
are online terms and conditions?
Online terms and conditions are 

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00:19:11,520 --> 00:19:14,480
the rules and guidelines that 
users must agree to in order to 

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00:19:14,480 --> 00:19:17,400
use a website, app, or online 
service. 

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00:19:17,880 --> 00:19:21,160
These terms, often presented as 
a legal agreement between the 

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00:19:21,160 --> 00:19:24,280
service provider and the user, 
outline the rights and 

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00:19:24,280 --> 00:19:27,600
responsibilities of both parties
and are a critical component of 

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00:19:27,600 --> 00:19:30,320
E contracts. 
Importance of Terms and 

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00:19:30,320 --> 00:19:35,200
conditions Legal Protection 
Terms and conditions provide 

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00:19:35,200 --> 00:19:37,960
legal protection for service 
providers by limiting their 

359
00:19:37,960 --> 00:19:41,240
liability and setting clear 
expectations for users. 

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00:19:41,680 --> 00:19:44,800
This helps protect the provider 
from legal claims related to the

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00:19:44,800 --> 00:19:48,720
use of their service. 
Example A Social media platforms

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00:19:48,720 --> 00:19:51,880
terms and conditions limit the 
company's liability for user 

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00:19:51,880 --> 00:19:55,240
generated content, protecting it
from legal claims related to 

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00:19:55,240 --> 00:19:57,360
defamation or copyright 
infringement. 

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00:19:57,840 --> 00:19:59,880
User rights and 
responsibilities. 

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00:20:00,600 --> 00:20:03,760
Terms and conditions outline the
rights and responsibilities of 

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00:20:03,760 --> 00:20:07,240
both the service provider and 
the user, ensuring clarity and 

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00:20:07,240 --> 00:20:10,480
fairness in the relationship. 
This includes rules about how 

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00:20:10,480 --> 00:20:13,720
the service can be used, what 
users can expect, and what 

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00:20:13,720 --> 00:20:15,560
happens if the terms are 
violated. 

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00:20:16,040 --> 00:20:19,560
Example and e-commerce sites. 
Terms and conditions specify 

372
00:20:19,560 --> 00:20:22,480
that users are responsible for 
providing accurate shipping 

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00:20:22,480 --> 00:20:25,640
information and complying with 
the site's return policies. 

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00:20:26,160 --> 00:20:30,200
Enforceability Properly drafted 
and communicated terms and 

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00:20:30,200 --> 00:20:33,160
conditions are legally 
enforceable, providing a basis 

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00:20:33,160 --> 00:20:36,560
for resolving disputes. 
For terms to be enforceable, 

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00:20:36,720 --> 00:20:39,840
they must be presented clearly 
and users must provide informed 

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00:20:39,840 --> 00:20:43,280
consent. 
Example A user disputes charges 

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00:20:43,280 --> 00:20:46,360
on a subscription service but is
held to the terms and conditions

380
00:20:46,360 --> 00:20:49,360
they agreed to, which outline 
the billing and cancellation 

381
00:20:49,360 --> 00:20:52,040
policies. 
The court is likely to enforce 

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00:20:52,040 --> 00:20:55,400
these terms, provided they were 
clearly presented and accepted 

383
00:20:55,400 --> 00:20:58,400
by the user. 
Key Components of Online Terms 

384
00:20:58,400 --> 00:21:02,200
and Conditions Online terms and 
conditions typically include 

385
00:21:02,200 --> 00:21:05,000
several key components that 
address different aspects of the

386
00:21:05,000 --> 00:21:07,960
relationship between the service
provider and the user. 

387
00:21:08,400 --> 00:21:11,680
These components help to manage 
expectations and protect both 

388
00:21:11,680 --> 00:21:16,360
parties. 
One Acceptance of Terms Users 

389
00:21:16,360 --> 00:21:19,320
must indicate their acceptance 
of the terms, typically by 

390
00:21:19,320 --> 00:21:22,640
clicking an I Agree button or by
continuing to use the service 

391
00:21:22,640 --> 00:21:24,360
after being notified of the 
terms. 

392
00:21:24,840 --> 00:21:27,440
This acceptance forms a binding 
E contract. 

393
00:21:27,920 --> 00:21:31,440
Example A user signs up for a 
streaming service and clicks I 

394
00:21:31,440 --> 00:21:33,600
Agree to accept the terms and 
conditions. 

395
00:21:34,040 --> 00:21:37,800
This action forms a binding E 
contract and the user is legally

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00:21:37,800 --> 00:21:39,760
obligated to comply with the 
terms. 

397
00:21:40,240 --> 00:21:45,280
Two Privacy Policy This section 
explains how user data will be 

398
00:21:45,280 --> 00:21:49,400
collected, used and protected, 
ensuring compliance with privacy

399
00:21:49,400 --> 00:21:52,600
laws and regulations. 
Privacy policies are 

400
00:21:52,600 --> 00:21:55,840
particularly important in the 
context of data protection laws 

401
00:21:55,840 --> 00:22:00,000
like the GDPR General Data 
Protection Regulation in Europe.

402
00:22:00,480 --> 00:22:04,440
Example An app's privacy policy 
details how it will handle user 

403
00:22:04,440 --> 00:22:07,920
data, including location 
information and contact details.

404
00:22:08,360 --> 00:22:12,240
The policy ensures that the app 
complies with GDPR, protecting 

405
00:22:12,240 --> 00:22:16,440
both the users privacy and the 
company from legal liability. 3 

406
00:22:16,920 --> 00:22:20,720
Intellectual Property rights 
terms and conditions often 

407
00:22:20,720 --> 00:22:23,880
include clauses protecting the 
service providers intellectual 

408
00:22:23,880 --> 00:22:27,560
property such as copyrights, 
trademarks, and patents. 

409
00:22:28,000 --> 00:22:31,480
These clauses specify how users 
may use the content and what 

410
00:22:31,480 --> 00:22:34,840
constitutes a violation of the 
providers intellectual property 

411
00:22:34,840 --> 00:22:37,720
rights. 
Example A content sharing 

412
00:22:37,720 --> 00:22:41,200
platforms terms state that all 
user uploaded content remains 

413
00:22:41,200 --> 00:22:44,680
the property of the user but the
platform is granted a license to

414
00:22:44,680 --> 00:22:47,240
display it. 
This clause helps to protect the

415
00:22:47,240 --> 00:22:49,800
platforms rights while 
respecting the intellectual 

416
00:22:49,800 --> 00:22:54,320
property of its users. 
For limitation of liability, 

417
00:22:55,000 --> 00:22:58,480
this clause limits the service 
providers liability for damages 

418
00:22:58,480 --> 00:23:00,320
arising from the use of the 
service. 

419
00:23:00,760 --> 00:23:03,560
It typically specifies the 
maximum amount the provider 

420
00:23:03,560 --> 00:23:07,120
would be liable for and excludes
liability for certain types of 

421
00:23:07,120 --> 00:23:07,880
damages.