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e-Mail Exchanges As Binding Contracts

BY Shari Claire Lewis
October 28, 2008

Contracts, it is generally assumed, have to be “signed, sealed and delivered” to be deemed effective. The explosive growth of the Internet and the increasing use and prevalence of e-mail, however, have radically altered how those formalities can be fulfilled. As a number of recent decisions in New York and elsewhere make absolutely clear, for good or for ill, parties now can conclude a contract, or amend an existing contract, via e-mail. See, e.g., Seymour v. Hug, 413 F. Supp. 2d 910 (N.D. Ill. 2005) (parties reached enforceable settlement agreement by virtue of e-mails).

Consider, for example, the 2005 decision by the U.S. District Court for the Southern District of New York in Hostcentric Technologies Inc. v. Republic Thunderbolt, LLC, 2005 U.S. Dist. Lexis 11130 (S.D.N.Y. June 9, 2005), where, in a dispute over a commercial lease, the plaintiff tenant sought to enforce a settlement agreement documented in an e-mail exchange against the landlord defendant.

As the court explained, on Sept. 21, 2004, after litigation had begun, the attorney for the landlord sent an e-mail to the lawyer for the tenant “to confirm my client's final settlement counter-proposal.”

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