Inanycase,suchusagewouldnotexistinthecaseofa newtrading relationship between partners who donothavean"established history" of dealing witheachother. 67.EDIisnotequipped, orevenintended, totransmit allthelegaltermsof thegeneral conditions thatareprinted onthebackofpurchase orders, acknowledgements andotherpaperdocuments usedbytrading partners. A solution tothatdifficulty istoincorporate thestandard termsina communication agreement between thetrading partners. Ithasbeenremarked that: "oneofthemostsalutary effects thattheintroduction ofEDIcouldhave onbusiness practices wouldbetorequire theformulation ofmutually acceptable (andtherefore morereliable) termsofdealing between important trading partners through theconscious negotiation ofnew masteragreements". 43/ 68.Onesuggestion thathasbeenmadewheretheparties cannotsettle on commonstandard termsisthattheyattachtheirrespective paperformstothe communication agreement. Itispossible fortheagreement toprovide "thateachofbuyer's purchase ordertransaction setswillbedeemedto incorporate thetermsonthebackofthebuyer's formandthateach ofseller's purchase orderacknowledgements willbedeemedtoincorporate seller's terms." 44/ Thus,theconflicting standard termswouldeffectively beexchanged through EDI.Whilethistechnique wouldpermittheparties toreachanagreement on themainissues,itwouldleavethesameuncertainty astotheapplicable termsofthegeneral conditions asiftheyhadexchanged thetraditional paper forms. E. Time andplaceofformation ofthecontract 69.Parties toacontract haveapractical interest inknowing, withsome certainty, whereandwhenthecontract isformed. Whenthecontract is formed, theparties become boundbythelegalobligations theyhaveagreed uponandthecontract maystartproducing effects. Indifferent legalsystems,A/CN.9/333 English Page18 thetimewhenthecontract isformedmaydetermine suchissuesasthemoment whentheofferor isnolongerentitled towithdraw hisofferandtheofferee hisacceptance; whether legislation thathascomeintoforceduringthe negotiations isapplicable; thetimeoftransfer ofthetitleandthepassage oftheriskoflossordamageinthecaseofthesaleofanidentified good; theprice,whereitistobedetermined bymarketpriceatthetimeofthe formation ofthecontract. Insomecountries, theplacewherethecontract is formedmayalsoberelevant fordetermining theapplicable customary practices; thecompetent courtincaseoflitigation; andtheapplicable law inprivate international law.45/ 70.Whendealing withthetopicofcontract formation, mostsystems distinguish between twosituations: inthefirstone,theparties areineach other's presence andareabletocommunicate instantaneously orwithout any significant lapseoftime;inthesecondone,theparties arenotineach other's presence andthemeansofcommunication utilized totransmit offers, acceptances, modifications, revocations andothermessages resultinadelay between thedispatch andreceipt ofthosecommunications. 71.Sinceacontract requires mutualassentoftheparties, manylegal systems agreethatacontract isformedwhenbothparties areawareofeach other's consent. However, whenparties communicate through anon-instantaneous ordelayed media,suchasmailedwritings, thepartywhoreceives amessage cannotverifythatthesender's willatthetimethemessage wassentremains thesameatthetimethemessage isreceived. Neither caneitherpartyverify inatimelyfashion thatreceipt ofthemessage hasoccurred andthatthe message isreceived without errors. 72.Twomaintheories, eachwithavariant, areusedtoovercome thisproblem towhichnofullysatisfactory solution isknown. Thereceipt rule-withits variant: theinformation rule-statesthatthecontract isformedwhenthe offeror receives notice, orisinformed, oftheofferee's consent. The declaration rule-withitsvariant: thedispatch rule-statesthatthe contract isformedwhentheofferee declares orsendshisacceptance ofthe offertotheofferor. Inthecaseofwritten mail,manylegalsystems have adopted someformofthedispatch rule.46/Itmayalsoberecalled that articles 18and23oftheUnitedNations Convention onContracts forthe International SaleofGoodsstatethatthecontract isformedatthemoment theindication ofassentreaches theofferor. 73.Itisgenerally admitted that,undernormalcircumstances, atelephone communication isinstantaneous, faithful andsecure enoughforacontract concluded bytelephone tobetreated asthoughithadbeenmadeinboth parties' presence. Indeed,allothercommunication systems canalsobe
**Analysis**
The text discusses the legal aspects of electronic data interchange (EDI) in international trade, specifically the formation of contracts and the exchange of standard terms between trading partners. It highlights the challenges of EDI in transmitting legal terms and the need for a communication agreement to overcome these difficulties. The text also touches on the topic of contract formation, including the time and place of formation, and the uncertainty that can arise when parties communicate through non-instantaneous means.

**Category**
Transport and communication, International trade