Legal Definitions - electronic transaction

An electronic transaction is a type of transaction that is conducted through electronic messages. In this type of transaction, the messages of one or both parties involved are not reviewed by an individual as an expected step in forming a contract.

• Online shopping: When you buy something online, you enter your payment information and shipping address through electronic messages. The seller then sends you a confirmation message, and the transaction is complete.
• Bank transfers: When you transfer money from one bank account to another, you do it through electronic messages. The banks involved in the transaction exchange messages to complete the transfer.
• Electronic signatures: When you sign a document electronically, you are using an electronic transaction. The document is sent through electronic messages, and your signature is added electronically.

These examples illustrate how electronic transactions are conducted through electronic messages. The messages are exchanged between the parties involved, and there is no need for an individual to review them as part of the contract formation process.