Electronic Commerce is the process of buying, selling, tranferring or exchanging products, services and/or information via computer network, including the Internet. In e-commerce environment, just like traditional paper-based commercial transaction, seller present their products, prices and terms to potential buyers. The buyers will consider their options, negotiate prices and terms if (necessary), place order and make payment. E-commerce is growing at a significant rate all over the world due to its efficient business transaction. Despite the fact of the development of e-commerce, there is uncertainty whether the traditional principles of contract law applicable to electronic contract. In formation of e-contract, the parties might disagree to what point and in which country an e-contract is formed. Malaysia as well as other country has enacted legislation on e-commerce in compliance with international organization i.e United Nations Commission on International Trade Law (UNCITRAL). The aim and objective of this paper is to identify the adequacy of existing legislation in Malaysia on e-commerce. This paper will also examines the creation of legally enforceable agreement with regard to e-commerce in Malaysia, digital signature and the uncertainty of where and when the e-contract is formed.


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