[HN Gopher] Contract by Email
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       Contract by Email
        
       Author : feross
       Score  : 58 points
       Date   : 2021-08-12 17:03 UTC (5 hours ago)
        
 (HTM) web link (writing.kemitchell.com)
 (TXT) w3m dump (writing.kemitchell.com)
        
       | benatkin wrote:
       | It's so pretty, but it's still terrible.
       | 
       | Check the Survival section.
       | 
       | "No reverse engineering" for 5 years after the 1 year contract
       | terminates (everything under the Confidential Information
       | section).
       | 
       | Not signing that. Will have to consider uninstalling email apps
       | from my phone, so I don't accidentally agree to one of these when
       | I'm behind on sleep. (https://www.sleepfoundation.org/sleep-
       | deprivation/lack-of-sl...)
        
       | EGreg wrote:
       | This won't actually work.
       | 
       | Because the document at that link can change. What can work is if
       | there is a hash of the data, and you hope that the data is still
       | there at the link. Better if you have the actual data that was
       | signed. Which means, we're back to actual documents.
       | 
       | What we SHOULD have, however, is a github for lawyers.
        
         | esquivalience wrote:
         | A paper contract can easily change as well. Ultimately it just
         | comes down to people telling the truth in court, supported by
         | evidence. You'd be surprised how often legal disputes come down
         | to this - but people tend to be honest about these things,
         | because fraud is a tough line to cross, and fraud on the court
         | is quite another.
        
           | kragen wrote:
           | _Preventing_ a web page from changing requires continuous
           | significant effort. _Changing_ a paper contract requires
           | significant effort, unless you just, you know, lose it, or
           | drop it in the gutter, or something.
        
         | id5j1ynz wrote:
         | What would github for lawyers be? I think all you'd need is
         | lawyers using github!
        
           | sbuttgereit wrote:
           | You mean kinda like https://github.com/kemitchell?
        
         | dctoedt wrote:
         | > _Because the document at that link can change._
         | 
         | The document at the link is a PDF, so the "the document is
         | changeable" problem could be addressed by downloading the PDF
         | and attaching it to the email agreement to serve as the record
         | copy.
         | 
         | TFA also points out that the document is at the Internet
         | Archive:
         | https://web.archive.org/web/*/https://waypointnda.com/3.0.0
        
           | Y_Y wrote:
           | Why not just include the contract in the email then? It's
           | just text right? Three's no special legal meaning to the
           | markup.
        
             | dctoedt wrote:
             | > _Why not just include the contract in the email then?_
             | 
             | One of the advantages of a fixed reference document is
             | that, apart from confirming that you have _that_ document,
             | you don 't have to _read_ it to know what it says -- and to
             | have a sufficient degree of comfort that the other side isn
             | 't trying to sneak something past you.
             | 
             | In contrast, if Party A (or its lawyer) copies and pastes
             | the contents of a reference document into an email, then
             | Party B will have to read the thing, which will take time
             | and, if a lawyer is involved, cost money in legal fees.
             | 
             | An analog that comes to mind is the INCOTERMS rules for
             | shipping goods: If you agree that the goods will be shipped
             | DDP (Delivered Duty Paid), or EXW (Ex Works), or whatever,
             | then you _know_ what you 're getting, without having to
             | read the rule again to be sure the other party isn't trying
             | to slip something in on you.
             | 
             | Another analogy is arbitration: If you agree to the
             | American Arbitration Association's rules for commercial
             | arbitration, then all concerned can go to the AAA Website
             | to get a reference copy.
        
               | Y_Y wrote:
               | I see your point here, but I'd counter that it's
               | technologically trivial to check that the text matches a
               | reference. If you already have a copy of the contract
               | that you've read and agreed to, and this email claims to
               | have included the same contract in a standard form, then
               | nobody needs to sit down and read the thing.
        
               | dctoedt wrote:
               | > _it 's technologically trivial to check that the text_
               | [of an email] _matches a reference_
               | 
               | Remember who we're talking about here: Lawyers and
               | business people -- too many of whom don't even know how
               | to use Microsoft Word "properly." [0]
               | 
               | (You have no idea how many contract drafts I review in
               | Word where the drafter used 'Normal' style for everything
               | and just bold-faced the headings; used blank lines to put
               | spacing between paragraphs; and didn't know how to do
               | automatic paragraph numbering.)
               | 
               | [0] Obligatory link to the famous comment about Dropbox's
               | launch: https://news.ycombinator.com/item?id=9224
        
           | BlueGh0st wrote:
           | >TFA also points out that the document is at the Internet
           | Archive
           | 
           | IME it seems to be trivially easy to have things removed from
           | the Internet Archive.
           | 
           | >How can I exclude or remove my site's pages from the Wayback
           | Machine?
           | 
           | >You can send an email request for us to review to
           | info@archive.org with the URL (web address) in the text of
           | your message.
           | 
           | https://help.archive.org/hc/en-
           | us/articles/360004651732-Usin...
        
             | adventured wrote:
             | It's not trivial. Archive.org intentionally makes it an
             | annoying process to either have material removed or
             | excluded from their index/ing. You also must own and
             | control the domain in question where the content is
             | located, which nullifies the premise here (waypointnda.com
             | is owned by someone else).
             | 
             | It used to be trivial to hide existing content in their
             | index from being viewable (for your domains). They entirely
             | changed that a number of years ago.
        
           | robbedpeter wrote:
           | Why are pdfs any more secure than a txt file, other than the
           | editing being more obnoxious in the case of pdfs?
        
             | dctoedt wrote:
             | Hard-copy documents can be fraudulently altered after
             | signature too. The question is, how much more burden do you
             | want to impose on the parties to address the infinitesimal
             | fraction of cases where that kind of fraud might be
             | involved.
             | 
             | EDIT: Each party presumably will have email records with
             | the PDF attachment -- and if the attachments don't agree,
             | then the parties' lawyers will be busy. But again, how
             | likely is that to happen, and how much time and money do
             | you want to spend to prevent it? At some point you hit
             | diminishing returns (and OCD behavior).
        
               | sdoering wrote:
               | This reminded me of a great talk (in German) by David
               | Kriesel about scanners not scanning correctly but
               | replacing letters and numbers because of pattern matching
               | (if I remember correctly).
               | 
               | It was a really great talk. Not sure if there is an
               | English version somewhere:
               | 
               | https://www.youtube.com/watch?v=7FeqF1-Z1g0
        
         | [deleted]
        
       | denton-scratch wrote:
       | You can make a contract on the phone; hell, two people in the
       | middle of a meadow can make a verbal contract that's completely
       | valid (provided there's an "exchange of considerations", and the
       | contract is "fair" - depending on jurisdiction).
       | 
       | The problem with verbal contracts is that it's hard to produce
       | evidence about such contracts, if it comes to enforcement.
       | 
       | Email would be OK, if the agreement were assigned to the custody
       | of some mutually-trusted party. It's no good if the parties to
       | the agreement each save their copy of the text/plain agreement on
       | their own corporate mailserver.
        
         | kemitchell wrote:
         | Very, very few signed, written contracts get deposited with a
         | neutral. Parties keep signed "file copies" among their records.
         | For big or important deals, one or the other's lawyer compiles
         | and shares a "closing binder". Mostly these are PDFs, on file
         | servers and mail servers.
         | 
         | Practical evidence is not technical proof. Methods of technical
         | proof don't cover all the potential legal challenges.
         | 
         | The goal is establishing terms before judge or jury. Do that
         | and the court can enforce.
        
         | dctoedt wrote:
         | The Statute of Frauds _requires_ some societally-significant
         | contracts to be in writing, and makes oral contracts in those
         | categories unenforceable. The law-student mnemonic is MY LEGS
         | -- a written contract is required for agreements concerning:
         | Marriage (e.g., prenups); Year (contracts that _cannot_ be
         | performed within one year); Land; Executor (when the executor
         | of a dead person 's estate agrees to pay the decedent's debts
         | out of the executor's own pocket); Guarantor (of another's
         | debt); Sales (of goods for $500 or more). [0]
         | 
         | Nit: Strictly speaking a written contract _is_ a  "verbal"
         | contract, because in this context, _verbal_ means, in essence,
         | using words, as opposed to, say, gestures or drawings. (
         | "Verbal" derives from the Latin _verbum_. [1])
         | 
         | [0] https://www.investopedia.com/terms/s/statute-of-frauds.asp
         | 
         | [1] https://en.wiktionary.org/wiki/verbum#Latin
        
           | only_as_i_fall wrote:
           | >The statute of frauds was adopted in the U.S. primarily as a
           | common law concept--that is, as unwritten law.
           | 
           | I found that part pretty amusing
        
         | kragen wrote:
         | Most of the time when there's a court case over these things,
         | the disputed facts do not include which email was sent at what
         | time and what it said. If the other party _does_ choose to
         | dispute those facts, it 's true that you would have a hard time
         | proving that you were in the right without some sort of witness
         | like what you're describing; but usually they don't. (It's
         | neither necessary nor sufficient that both parties trust the
         | witness at the time; what matters is whether the court believes
         | the witness if a dispute arises.)
        
       | briandoll wrote:
       | Or just never sign NDAs since they are almost universally
       | egregious and don't benefit you at all to become party to. 99% of
       | the time when you say no, the other party will just shrug and say
       | ok.
        
         | Y_Y wrote:
         | I have NDAs preventing clients from passing on the awful
         | secrets I reveal to them, I don't know if that's egregious but
         | I definitely appreciate it.
        
         | bob1029 wrote:
         | NDAs are extremely important for businesses to be able to work
         | together on common projects. I work in finance and if I told
         | one of my customers or vendors that we were not going to
         | execute an NDA, the conference call would end very abruptly.
         | 
         | Also consider if the tables were turned and it was you who had
         | the mountains of IP and other liabilities that would be
         | shielded by an NDA.
        
         | lowercased wrote:
         | totally depends on situation.
         | 
         | I've been asked to sign NDAs. "Hey, i got this cool idea, sign
         | my NDA". The couple times I've done that have been... not worth
         | the effort, and never amount to anything. But they're still
         | some mental overhead I have to keep account of for a while.
         | 
         | "We're bringing you in to project X, and we've agreed to
         | payment terms, and project length. Sign this NDA preventing you
         | from sharing our corporate secrets (with some reasonable
         | definition of 'secret') to work on the project". I've generally
         | no problem with those sorts - they are a part of real
         | project/work/life, and generally money is attached.
         | 
         | I've given up dealing with the first sort, and have "lost out
         | on some big opportunities" (their words, not mine) because of
         | the refusal. I've managed to eke out a living nonetheless.
        
         | rubidium wrote:
         | "99% of the time when you say no, the other party will just
         | shrug and say ok." You must live in a particular bubble of
         | NDA's.
         | 
         | For product R&D in Biotech (non-California at least), NDA's are
         | nearly universal and never optional. You don't sign, you don't
         | work.
        
           | paxys wrote:
           | Yeah, their scenario is a fantasy unless the party signing
           | the NDA has more leverage, which is never the case.
        
         | hn_throwaway_99 wrote:
         | I sign, and require signatures, for non-egregious NDAs all the
         | time.
         | 
         | You will quickly find that at outright refusal to sign an NDA
         | will very quickly limit your business options, especially when
         | negotiating between corporate entities.
        
       | jrm4 wrote:
       | I'm just happy to see something about contracts here that's
       | actually about _contracts_ -- not about the blockchain things
       | called  "smart contracts," which are neither smart (okay, that's
       | debatable) but definitely not contracts.
        
         | foobarbecue wrote:
         | Yeah and don't you hate how graphs aren't graphs and trees
         | aren't trees? These people talk about bootstrapping when they
         | aren't even referring to footwear! And always talking about
         | bandwidth as if it's a maximum data rate when the term really
         | refers to the electromagnetic spectrum! Makes me so angry how
         | these people treat language as if it's some fluid thing where
         | homonyms develop.
        
           | shuntress wrote:
           | "graph", "tree", "boostrapping", and "bandwidth" are all
           | fairly accurate analogies.
           | 
           | "smart contract" is a buzzword (incidentally, you may notice
           | that it is not _literally buzzing_ ).
           | 
           | The parent comment is like saying _" I'm just happy to see
           | something about crypto that's actually about cryptography"_
        
             | foobarbecue wrote:
             | Wow, downvoters, excuse me for having a little fun!
             | 
             | But since you want to be serious, let's bikeshed this: What
             | word would you rather we use, in place of "smart contract,"
             | to refer to the small programs that run on the blockchain?
        
       | nanomonkey wrote:
       | What are the necessary components of a contract? If I wanted to
       | create a document storage for contract datastructures, each
       | having their own unique content addressable hash, what are the
       | key features that would be needed to be considered a legal
       | contract? Name/Title, creator, recipients,
       | signatures/acknowledgements and terms? Are their specific terms
       | involved. Any specs on this sort of electronic data?
        
       | dctoedt wrote:
       | One of the main points here is that in the U.S., contracts can be
       | agreed to by email (or text).
       | 
       | (Kyle, thanks for the shout-out in TFA.)
        
         | jbverschoor wrote:
         | Well the same in Europe, but there's also a distinction between
         | the levels of how to authenticate parties.
        
         | swiley wrote:
         | Why wouldn't that be legal? Obviously you should be using
         | S/MIME or GPG if you're worried about fraud but it's not like
         | hand signatures are all that secure.
        
           | danielrhodes wrote:
           | I wouldn't think about wet ink signatures as a matter of
           | security, per se.
           | 
           | A contract is only valid as long as both parties stick to it.
           | If there's a disagreement, it's up to a court to figure it
           | out. That's where you get into risk mitigation. If you are
           | comfortable with a court making a determination based on an
           | exchange over email, then great. Courts see email as a valid
           | form of proving one's identity. If you want to go further to
           | reduce the risk that a court invalidates the contract, you
           | can do things like having witnesses, wet ink, notaries, etc.
           | Obviously for a contract with low material value, it's not a
           | big deal. Signing a multi-million dollar contract? People
           | start taking whatever measures they can to ensure things are
           | air tight.
           | 
           | A lot of tech people think risk mitigation is only verifying
           | somebody's identity, but a court could decide a contract is
           | invalid because the person signing it had no idea what was
           | inside. So there's a lot more to it.
        
           | warkdarrior wrote:
           | Actually _you_ should be using S /MIME or GPG if _the other
           | party_ is worried about fraud. If fraud happens (someone
           | claiming to be you signs a contract), it is typically the
           | other party to the contract that loses, because they did
           | insufficient due diligence to ensure that they are entering
           | into an agreement with the correct partner.
        
           | CheezeIt wrote:
           | Hypothetically, it could be that some law was worded "in
           | writing or verbally, or via telegram" and it didn't include
           | other forms of communication.
           | 
           | There is in fact a U.S. law that defines "writing" in some
           | parts of the law to encompass electronic communication in
           | some manner as well. So some federal laws that required
           | certain kinds of agreement to be in "writing", like, IIRC,
           | exclusive copyright licensing, now permit electronic
           | communication.
        
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       (page generated 2021-08-12 23:01 UTC)