CONTRACT SERVICES - Changing Contract Terms Online:

Since the emergence of e-commerce, many experts have been wrestling with the question of how companies service its customers online. Under an on-line contract, companies often unilaterally or arbitrarily changes the terms by simply posting the changes to its website, without necessarily notifying its customers. This practice is contrary to the contract laws where such unilateral changes are invalid without the consent of the other party thereto.

In a significant development, a US federal appeals court has ruled against companies posting revised terms to its website without notifying the customers. “This is because a revised contract is merely an offer and does not bind the parties until it is accepted.”

Full text of this case is available to the following link:

http://pub.bna.com/eclr/0675424_071807.pdf