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‘Thumbs-up’ emoji as acceptance: informality risks, electronic signatures and practical steps to avoid inadvertent contracting

Published on: 06 March 2024

Published by a LexisNexis Commercial expert
Legal News
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Article summary

Informality in contracting

Risks connected with informal contracting are mounting. Emerging indications show that emojis used in correspondence may present a fresh hazard for those negotiating contracts. Commercial parties will recognise the core components of a contract:

  • offer
  • acceptance
  • consideration
  • intention to create legal relations
  • certainty of terms

Each is needed to create a binding contract in England and Wales. Although clear, formal, fully negotiated and finalised legal documents remain the gold standard, contracts may still arise informally. They can come about through exchanges of correspondence, for instance, or by conduct developed over a course of business dealings. Recent international decisions (see below) highlight a further informality risk—namely, that emojis used in messages during contractual negotiations and routine business practice can evidence an intention to create legal relations and can amount to acceptance of an offer.

Electronic signatures and the UK position

Commercial parties will likewise be aware that, in the UK, electronic signatures are effective. At common law, no specific form or type of signature is mandated. The real question is whether the chosen signing method shows an authenticating intention...

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