text: 42.Astudywasinitiated in1987 by theElectronic Messaging Services Task Forceundertheauspices oftheAmerican BarAssociation (ABA)toexamine the effects ofelectronic commerce uponfundamental principles ofcontract lawand related legalissues. Afirstreporton"Electronic Messaging" wasreleased in198828/andthefinalReport onElectronic Commercial Practices, incorporating a Model Electronic DataInterchange Trading Partner Agreement andcommentary, waspublished in1990.Apresentation ofthefinalreportwas madetotheinternational EDIcommunity atthethirty-first session ofthe Working PartyonFacilitation ofInternational TradeProcedures ofthe Economic Commission forEuropeinMarch1990.29/Thisreport, which concentrates onthelegalissuesrelated tothesalescontract underthelaw oftheUnitedStatesofAmerica, constitutes avaluable attempt toidentify andsolve, amongst others, theproblems thatmayariseinacommon lawcountry whichhasmaintained thetraditional requirement ofawriting contained inthe Statute ofFrauds. Theoriginal 1677Statute ofFrauds waspassedinthe ~ United Kingdom withaviewtoreducethefraudsinvolved incontracts ata .., timewhenthelawofevidence wasundeveloped. Amongotherevidentiary rules, itrequired certain typesofcontract tobeevidenced inprescribed written modes. Thisrequirement inregardtoacontract forthesaleofgoodsisset outinsection 2-201oftheUniform Commercial Codeasfollows: "Acontract forthesaleofgoodsforthepriceof$500ormoreisnot enforceable unlessthereissomewriting sufficient toindicate thata contract hasbeenmadebetween theparties andsignedbytheparty against whomenforcement issought." 43.ThereportalsonotesthattheUnitedStateshasratified theUnited Nations Convention onContracts fortheInternational SaleofGoodsandthat, asaresult, nowriting isrequired forcontracts ofsalesubject tothat Convention. 44.Thereportnotesthatthedefinition of"writing" andof"signature" can beofparticular importance (seeparagraph 13above). Potential difficulties canbeovercome eitherby amutual agreement that,inrespect offutureEDI communications constituting anofferoracceptance ofacontract, theparties willnotassert adefence basedupontheStatute ofFrauds, orby aspecial provision intheirtradeagreement thattheparties agreetoconsider EDI communications as"written" and"signed" messages. However, oneofthe important findings ofthereportisthat,evenwhen EDI usersenterinto communication agreements withoneanother, theyseldomaddress theproblems resulting fromtheStatute ofFrauds. SinceEDIiscurrently usedmainly between trading partners withalong-term relationship, afailure toaddress theStatute ofFraudsproblems hasapparently notledtoserious difficulties or,atleast,thosedifficulties havenotresulted inlitigation. However, suchproblems canbeexpected toarisewhen EDI isusedmorewidely andina moreopenenvironment. 45.Thereportnotesthat,although anumberofexceptions totheapplication oftheStatute ofFraudshavebeenrecognized bytheCourts, nocaselaw existsregarding EDI.Afteranalysing commercial practices, theauthors of thereportconclude that: "Theissueiswhether therecords ofEDIcommunications, whichare increasingly relieduponbybusinesses themselves, areacceptable within the'signedwriting' concepts oftheUniform Commercial Codeandrelated• ,A/CN.9/333 English Page13 caselaw.Alternatively, inlightoftherepetitive natureoftheuseof EDItocomplete commercial transactions andthemutualefforts oftrading partners required tostructure andmaintain appropriate communication systems andsecurity procedures, theissuemaybewhether eithertrading partner maybeestopped fromasserting theStatute ofFraudsagainst the othertoavoidtheenforcement ofanyunderlying contract forthesaleof goods. Several members oftheTaskForcewerereasonably confident the Statute ofFraudswouldnot,undereitheranalysis, preclude enforcement." 30/ 46.Onthispoint,thereportconcludes thatthereisaneedfortrading partners toadoptsomeformofabilateral agreement governing theirEDI relations andtomakesurethatthisagreement addresses theStatute ofFrauds issues. 47.Itwaspointed outintheABAReportthat: "Thefailure oftheUniform Commercial Codetospecifically accommodate
analysis: The text discusses the effects of electronic commerce on fundamental principles of contract law and related legal issues, specifically the Statute of Frauds. It highlights the need for trading partners to adopt bilateral agreements governing their EDI relations and addresses the Statute of Frauds issues. The text does not mention any of the other categories, such as economic development, natural resources, agriculture, forestry, fishing, transport, health, education, employment, humanitarian aid, culture, or science and technology.