eBay Case Analysis -BBA 3210 Business Law 3


eBay Case Analysis

eBay is one of the biggest online auctioning companies in the world. Buyers and sellers of all types are able to hop online, put up something for sale, and sell it! Basically, the way it works is that you find something you want to bid on, place a bid on it, and wait to see if your bid wins. If it does, you send your information to the seller, and in return, he or she sends you your goods.

is an eBay auction a legally-binding contract? In a minimum of 500 words, consider whether a bid placed in an online auction on eBay is legally binding and, therefore, enforceable. Explain your reasoning using the elements of contract analysis that you have learned thus far, including valid offer, valid acceptance, and the various forms of consideration.

Cite any direct quotes or paraphrased material from outside sources. Use APA format.

Information about accessing the grading rubric for this assignment is provided below.

BBA 3210, Business Law 3


eBay Case Analysis

With the recent rampant use of technology in the business world today, most organizations have turned their attention to online transactions where they carry out their businesses without meeting face to face with their customers. However, for the business and operations to work smoothly, there is the need for a contract between the business and the customer. A contract is an bargain in writing between persons or companies in which the court of law can compel fines if one party fails to honor their promises and end of the bargain. Some giant and multinational companies such as eBay have helped in connecting individuals from different types of the world all in the attempt of creating the link between the sellers and buyers (Kubasek, 2016). According to the law of the country, a legally binding contract has four important elements that include the offer, acceptance, intention of legal consequences and consideration. However, further research shows that despite the fact that most electronic agreements and contracts are not normally signed by both parties, they may still be legally binding contracts for most types of contracts (Law Institute, 2008).

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Online contract

While most of the online agreements can be enforced by the court of law, there are special cases where an online contract will not be legally binding. In most cases, online contracts are made when each party involved in the contract exchange emails or having customers or the sellers fill out an order form on the company website. Moreover, online contracts can also be created by presenting the terms of the contract to both parties by asking them to read and click on the words I AGREE on the company website. Further research shows that under the united kingdom law when an individual wins something on eBay, they form a legally binding contract to purchase the item. Therefore, the user bargain, the user privacy notice, the mobile conditions and all the policies written on the company’s website spells out the terms and conditions of which the company provide parties to use the company sites, services and applications (Clark & Monk, 2017). This means that these user agreements note are used as a contract in the case that one of the parties feels like backing down from their contract. In such an event, the seller can take the buyer to the court of law for failing to honor their promises. All the company policies, the mobile devise terms, and the user privacy notice are incorporated into the user agreement.

When it comes to the online contracts, the offer is made when the company presents the terms and conditions of doing business. The offer must be definitive and stated with the required time frame. On the other hand, acceptance is the agreement by the receiving party to the terms and conditions in the contract. Only what is offered in the contract can be accepted. Therefore, when the users click the, I AGREE on the company website they accept the offer provided by the company (Kubasek, 2016). The intention of legal consequences occurred when all the parties involved agree to adhere to the conditions in the contract. Finally, consideration represents the price that must be paid in the case that one party fails to honor the terms of the contract. The buyer must buy the already won item or face a court action.


Clark, G. L., & Monk, A. H. (2017). Investment Management Contracts. Oxford Scholarship Online. doi:10.1093/oso/9780198793212.003.0006

Kubasek, N. B. (2016). Dynamic business law: The essentials (3rd ed.). New York, NY: : McGraw-Hill Education.

Law Institute, B. C. (2008). Report on Relief Under Legally Defective Contracts: The Uniform Illegal Contracts Act. SSRN Electronic Journal. doi:10.2139/ssrn.1418203

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