lecture given at ESC Rennes in 2014

1. Online
terms & conditions
Jacques
Folon
www.folon.com
!
Partner
Edge
Consulting
!
Maître
de
conférences
Université
de
Liège
Chargé
de
cours
ICHEC
Brussels
Management
School
Professeur
invité
Université
de
Lorraine
(Metz)
ESC
Rennes
!
http://www.nyls.edu/institute_for_information_law_and_policy/conferences/visualizing_law_in_the_digital_age/

2. All presentation and resources are available on
WWW.FOLON.COM (cours)

3. Online terms & conditions are binding contractual offers and are
today the most complex legal environment

4. Basic principles about
contracts

5. Nemo censetur ignorare legem
legal fiction
!
!
!
!
!
7

6. freedom of contracting
http://www.scuole.vda.it/mpf/images/droit_economie/image020.jpg
8

7. Consensualism
Source de l’image: http://www.contrat-agile.org/images/balance.jpg
9

8. principally a contract must not be in writing
http://mende.blogs.midilibre.com/media/00/01/524903691.JPG

9. But online contracts must
be saved and archived by
the merchant
9

10. Consent
◆ free
◆ understanding
◆ mistakes
◆ consumer
protection
◆ Cooling off period
http://mpchristianity.com/wp-content/uploads/2009/11/james-bond-holding-gun-600x360.jpg

11. A contract is a law for the parties
12

12. DON’T FORGET
A WEDDING CONTRAT IS ONLY WRITTEN
FOR THE DAY OF THE DIVORCE !!!
Source de l’image : http://www.linterna1u3te.com/argent/impots/contrat-mariage/

13. ONE MAY NOT SIGN A CONTRAT
FOR A THIRD PARTY
• PROXY
• POST RATIFICATION
• POWER OF ATTORNEY
Source de l’image: https://encrypted-tbn3.gstatic.com/images?q=tbn:ANd9GcTweadE3u2MHLsU2pXJe4eTnsFakN_4jleT8W5g2XFTQj4ON3vU
14

14. A BADLY WRITTEN CONTRACT IS A
POSSIBILITY OF CONFLICTS
Source de l’image: http://media.comprendrechoisir.com/public/image/public/studio/image/content/259184/mainImage-main-4346798.jpg

15. THE ONE WHO HAS THE PEN
WRITES THE LAW
Source de l’image: http://www.lexisnexis.com/Community/corpsec/resized-image.ashx/__size/550x0/__key/CommunityServer.Blogs.Components.WeblogFiles/business-law-blog/fine-print-contract.jpg
16

16. THE MORE IMPORTANT READER
IS THE JUDGE!
Source de l’image: http://phandroid.s3.amazonaws.com/wp-content/uploads/2011/07/judge-judy.jpg
17

17. ITERPRETATION ONLY EXISTS
IF THE CONTRACT IS UNCLEAR
http://cache.20minutes.fr/img/photos/20mn/2009-07/2009-07-21/article_magistrat.jpg

18. THE LAW MAY ADD OR SUPPRESS SOME
ARTICLES OF A CONTRACT !
http://www.assurances-et-mutuelles.com/wp-content/uploads/2011/09/loi-chatel.jpg
19

19. LEGAL ADVISER OR LAWYER
• LEGAL ADVICE
• CONTRACT
• COURT CASE
http://media.comprendrechoisir.com/public/image/appel-avocat-ou-notaire-main-7857840.jpg
22

20. WHO IS A « GOOD » LAWYER?
24

21. ONE MAY DISCUSS FEES
• TIME SHEET
• HOURLY RATE
• SUCCESS FEE
http://www.capital.fr/var/cap/storage/images/media/images/photo-v2-457x222/rea/argent-noir/5482686-1-fre-FR/argent-noir_large.jpg
25

22. 30
UNBALANCED
➢CONSUMER (=> PROTECTION)
➢SIZES IN B2B
➢TECHNICALITIES
➢LACK,OF PRECISENESS

23. REASON OF THE CONTRACT
35
! • GOOD
• SERVICE
• B2B
• B2C

24. Source: http://www.selogerpro.com/zi/e3/32/67632.jpg 5215
• WHAT ARE
THE
CONTRACTUAL
DOCUMENTS ?

25. MAIN CONTRACTUAL
CLAUSES
25

26. The consumer has the right to contractual
terms written in plain and understandable
language and this applies as well online.
!
Where there is doubt about the meaning of a
term, the interpretation most favourable to the
consumer shall prevail

27. Any consumer in the EU, also in the
digital environment, is protected
from unfair standard contract terms
by traders that create an
unreasonable imbalance to the
detriment of the consumer.
!
If a contract contains such terms, the
consumer is not bound by them,
although the contract itself usually
remains valid.

28. WHO ARE THE PARTIES ?
• BE PRECISE
• CONSUMER ? VAT?
• COUNTRY OF THE
MERCHANT
• INFORMATION
REQUESTED BY
CONSUMER
PROTECTION

29. Every online consumer concluding a contract in the EU has the
right to have easy, direct and permanent access to at least
the name and geographic address of the provider,
the electronic mail address or website,
the trade register in which the provider is entered and his
registration number,
the professional title and professional body with which the
provider is registered,
the VAT details where applicable
any other detail allowing rapid and effective contact with the
provider
access to codes of conduct to which the provider subscribes
to contract terms and general conditions in a way that allows
him to store and reproduce (print) them.

30. WHO IS THE MERCHANT ?
• WELL KNOWN?
• LOCALIZED IN AN
UNUSUAL
COUNTRY
• E-REPUTATION ?
http://gamersblogfr.files.wordpress.com/2012/06/anonymous.

31. 59
• IMPORTANT FOR
INTERPRETATION
• IMPORTANT FOR
THE
UNDERSTANDING
WHEREAS
http://www.lanouvellerepublique.fr/var/nrv2/
storage/images/contenus/articles/2013/02/01/la-sensation-
beckham-au-psg/24704292-1-fre-FR/
La-sensation-Beckham-au-PSG_reference.jpg

32. ENTRY IN FORCE
➢ COOLING OFF PERIOD
OF 14 DAYS
➢ PRODUCT OR SERVICE
UNAVAILABLE
➢ SUSPENSION CLAUSE
http://www.linternaute.com/argent/immobilier/maitriser-ses-charges-de-copropriete/image/date-anniversaire-contrat-est-moment-remettre-compagnies-concurence-obtenir-994183.jpg

33. TYPE OF CONTRACTS
• T & C => NO NEGOCIATION
• AGAINST MONEY - FREE -
FREEMIUM
• ONE SHOT - MONTHLY
• GOODS OR SERVICES
• DIGITAL GOODS
60
http://www.barreau-annecy.com/images/stories/contrats.jpg

34. • FIXED PRICE
• MUST BE CLEAR
• ONE PAYMENT OR SUCCESSIVE
• ON DELIVERY - BEFOREHAND
• LATE PAYMENT INTERESTS
• DELIVERY INCLUDED?
33
61
PRICE

35. WHAT IS SOLD ?
INTELLECTUAL PROPERTY?
65

36. Every consumer in the EU has the
right to receive clear, correct and
comprehensible key information
from a trader about the product or
service before making an online
purchase.

37. This information must include the main characteristics of
the product,
!
price inclusive of taxes,
delivery costs,
the arrangements for payment, delivery or performance,
identity and geographical address of the trader,
the existence of a right of withdrawal or cancellation (for
products which involve such right),
the period for which the offer or the price remains valid
if applicable, the minimum duration of the contract.
37

38. Unless contracts are concluded exclusively by exchange
of electronic mail or by equivalent individual
communications, this information must also contain the
different technical steps to follow to conclude the
contract; whether or not the contract will be filed and
accessible; the technical means for identifying and
correcting input errors, and the languages offered for
the conclusion of the contract
!
When the consumer places his order online, he has the
right to receive an acknowledgment of the receipt of
the order without undue delay and by electronic means
38

39. Drugs, forbidden products (in certain
countries ), medical products, etc.
http://www.lacapitale.be/sites/default/files/imagecache/pagallery_450x300/1893094842_ID6494725_drogue_125820_H36EUE_0.JPG

40. 68
• FIXED TERM OR
NOT
• IF NOT HOW TO
STOP IT
• WHAT IS THE
BEST WAY?
40
LENGHT

41. COUNTRY
• DELIVERY OF SERVICE
• CONFLICT OF LAWS
• CONTRACT APPLICABLE LAW
41
69

42. INTELLECTUAL PROPERTY
70
• IMPORTANT IF APPLICABLE
• Copyright vs. Droit d’auteur
• TRANSFER OF RIGHTS
• WHAT IS AUTHORIZED?
Source: http://digitallife.vanderbilt.edu/copyright2.jpg 42

43. 71
• WHEN ?
• ON DELIVERY?
• WHO IS RESPONSIBLE
• EVIDENCE OF DELIVERY
•
43
TRANFER OF
OWNERSHIP

44. 72
• B2B
• INternational
COmmercial
TERMS
44

45. 7435

46. 74

47. 7456

48. • DELIVERY & RECEPTION
• DOES DELIVERY MEANS ACCEPTANCE?
• ACCEPTANCE PROCEDURE IS NEEDED
76
TRANSFERT DE
LA PROPRIETE

49. PLANNING FOR SERVICES
• « milestones »
• PAYMENT FOR WHAT IS DONE AND ACCEPTED
• PERIODIC MEETINGS
50
77

50. MILESTONES
TIMELINE
78
• BENEFITS
– NO NEWS NO RELATIONSHIP
– NEW PRODUCTS OR SERVICES
– ANTICIPATE PROBLEMS
– PRE-COURT CASE FILE

51. HIDDEN DEFECTS
• UNSEEN AT RECEPTION
• ONLY FOR GOODS
• WHO IS RESPONSIBLE?
• UPGRADING OR REPAIRS POSSIBLE
79

52. PRIVACY POLICY IS MANDATORY FOR B2C

53. TECHNICAL ASSISTANCE
• HOT LINE
• WEBSITE
• FAQ
• SERVICE LEVEL AGREEMENT

54. SERVICE LEVEL
AGREEMENT
Texte
http://4.bp.blogspot.com/_PBP29OxRzfc/SaJqohXJ1oI/AAAAAAAAAFA/x3MIbLJPe-E/s400/SLA.JPG
81

55. CONFIDENTIALITY
88

56. WARRANTY
• LIMITS RESPONSIBILITY
• LEGAL WARRANTY B2C
• AGAINST THIRD PARTY
CLAIMS IN IPR
• AMOUNT MAY BE LIMITED

57. LIMITATION
OF
RESPONSIBILITY
• ACCEPTABLE
• UNLESS IF NOT
LEGALLY ACCEPTED
• MAY NOT BE EXCESSIVE

58. BODY SHOPPING
✓ MISSION
✓ WHO IS THE BOSS?
✓ LOCAL RULES
✓ MATERIAL
✓ CONFIDENTIALITY
✓ SECURITY
92
http://investban.e-monsite.com/medias/images/consulting-

59. CHANGE IN THE T&C
!
THEY MUST BE
ACCEPTED BY THE
OTHER PARTY

60. http://blogs.iq.harvard.edu/netgov/2010/05/facebook_privacy_policy.html
60

61. INEXECUTION
• BASIC
– REIMBURSE OR SEND BACK
• CAUSES MUST BE
DEFINED

62. WHO MUST
DEMONSTRATE THE
EVIDENCE OF THE
CONTRACT
!
IN B2C
IN B2D

63. 95
CANCELLATION
CLAUSES
• A PARTY DID NOT
FULFILL ITS OBLIGATION
• BANKRUPCY
• …

64. 96
• IN ORDER TO
COMPENSATE
– A DAMMAGE
– BAD PERFORMANCE
– TIMING NOT
RESPECTED
• THEY MUST NOT BE
EXCESSIVE
65
PENALTIES

65. FORCE MAJEURE
!
IRRESISTIBLE
NOT PREVISIBLE
NOT DEPENDING ON A PARTY

66. 98
TRANSFER OF THE
CONTRACT
• PREVIOUS
ACCEPTANCE
• RESPONSAIBILITY

67. SUB CONTRACTORS
• IDENTITY
• PREVIOUS ACCEPTANCE
• DEFINITION OF QUALIFICATIONS
• RESPONSIBILITY
99

68. MEDIATION
17001

69. ARBITRATION OR COURT ?
17012

70. APPLICABLE LAW & TRIBUNAL
103

71. Drafting T&C is a quite
complex job
71

72. QUESTIONS ?
105

73. 17056

74. 17077