European Journal of Law and Economics

, Volume 44, Issue 3, pp 503–515 | Cite as

Parties’ legal capacity in electronic commerce transactions

  • Parviz Bagheri
  • Kamal Halili Hassan
  • Mehdi Shabannia Mansour


The aim of this article is to scrutinise the uncertainty of the Iranian Electronic Commerce Law (IRI ECL 2004) provisions especially on the issue of capacity of parties. Issues of parties’ legal capacity have been resolved in traditional contracts but they are still debatable in electronic commerce transactions. Under UK law, contracts formed by minors for things other than necessities are unenforceable against the minor but enforceable against the merchant (seller) while according to US uniform commercial code in online contracts capacity is not recognized as a legal excuse to nullify a contract. At the mean time, contracts made by incapacitate person is considered null under Iranian law. In spite of technical developments such as digital signatures and smart cards used in verifying the identity and capacity of parties in electronic commerce transactions, the legal certainty on capacity of parties is still questionable. The article also examines the application of traditional contract general rules on parties’ legal capacity in Iran to electronic commerce with reference to EU law. The EU law which is already at an advance stage serves a guide for future development of e-commerce law in Iran.


E-commerce ECL 2004 Parties’ legal capacity Iran 

JEL Classification

K1 K12 


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Copyright information

© Springer Science+Business Media New York 2012

Authors and Affiliations

  • Parviz Bagheri
    • 1
    • 2
  • Kamal Halili Hassan
    • 2
  • Mehdi Shabannia Mansour
    • 2
  1. 1.Bakhtar Institute of Higher EducationIlamIran
  2. 2.Faculty of LawUniversiti Kebangsaan MalaysiaBangiMalaysia

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