From Typical Contracts to E-Contracts - Assignment Example

From Typical Contracts to E-ContractsThe use of electronic contracts at the real property closings is of benefit to its consumers globally. This is because the new technology has far much benefit than the old way whereby files had to be used in carrying the documents to be used. Its benefits as stated from the reading are as follows. First, the method is convenient as well as beneficial to both consumers. This is because none of the buyers or sellers will have to travel long distances to get to land offices.

Secondly, there is the automatic delivery of the signed documents directly to the closing (Mitkus & Eva 4-8). Therefore it is advantageous as it saves both consumers the time they would have used to travel to the signing offices. Third, the technology has greatly improved efficiency in the real estate sector hence resulting to reduce “contract-to-closing times.” Also, the electronic contract system reduces deforestation. This is because it has eliminated use of papers for documentation. Instead it uses CD’s where the signed documents are stored and issued to the consumers.

In addition, the new procedures favors consumers who do not like to reveal their identity. This is because there is no eye contact between the buyer and seller. The only person who gets to meet the consumers is the attorney thus providing privacy to those who value their personal privacy. From the 1st classmate, I would agree with him that it feels different while closing deals through electronic system compared with the traditional way. Despite the difference in two methods, both need much attention as a way of maintaining accuracy.

By using this method, consumers risk losing nothing since they are guaranteed protection from the real estate companies. None of their protection will be jeopardized in electronic contracts since all procedures are done in private. To the 2nd classmate, I think you should end the doubts you have towards the e-contract system. It is true people rarely read the whole contract but with the use of e-contracts, one can read them faster than reading hard copies. The search and find tools make all the difference thereby making the transactions easy and transparent.

In addition to this, conditions precedent are adhered to thereby the whole procedure is done under the discharge performance rule. By this it means that the completion of the consumers’ contract can only be done through following what was promised before the signing of that contract.From the evaluation of two classmates, it is clear that the e-contract is much safer compared to the tradition one. Elimination of witnesses is another importance of the e-contract.. This is because e-contract is allowed to operate through the discharge by novation rule.

At this point, the requirements are a previous but valid obligation, both parties agreement to the new contract, the discharging of a prior property as well as the current new and valid contract (Cheeseman 3).From my view, the electronic method is a simplification of the traditional method. Similarly, it is much safer as one can make many copies of the documents in the CD’s and store them online (Krishna, Kamalakar & Ajay 65). However, with the traditional method, filling of the documents requires much space and paper work.

Such documents are prone to damage either by fire or water and hence replacing them will take quite some time. Finally, the electronic contract system is a safer and fast way of conducting business in the real estate sector. In conclusion, I would recommend that attorney conducting the real estate closings move to the new method as way of embracing technology. Works CitedCheeseman, Henry R. Business law: Legal environment, online commerce, business ethics, and international issues. Pearson Prentice Hall, 2007.

Krishna, P. Radha, Kamalakar Karlapalem, and Ajay R. Dani. "From contracts to e-contracts: Modeling and enactment." Information Technology and Management 6.4 (2005): 363-387.Mitkus, Sigitas, and Eva Trinkūniene. "Reasoned decisions in construction contracts evaluation." Technological and Economic Development of Economy 14.3 (2008): 402-416.