This module explores the legal background against which electronic commercial transactions are conducted. It examines how electronic transactions fit within the pre-existing legal framework that did not originally contemplate such transactions and how rules originally formulated against the background of traditional form contracts operate with regard to electronic transactions. The course also focuses on the rapidly growing body of domestic laws and international legal instruments that are being tailored specifically towards the legal governance and regulation of electronic commercial activity. At its core, the course is concerned with the legal issues surrounding electronic contracts in terms of their different types, formation, validity, contents and terms, payment mechanisms, enforcement and conflict of laws issues. These issues are examined both in terms of business-to-business (b2b) transactions as well as business-to-consumer (b2c) transactions, having special regard to specific legal instruments affecting the latter. In addition, consideration is also given within the course to some of the more important regulatory and policy issues that affect the transaction of business by electronic means such as the establishment of an online business, potential subjection of such business to liability in different jurisdictions, liability of third-party service providers and privacy issues.