Sec. 109. If a change or error in an
electronic record occurs in a transmission between parties to a
transaction, the following rules apply:
(1) If the parties have agreed to use a security procedure to detect changes or errors and one (1) party has conformed to the procedure, but the other party has not, and the nonconforming party would have detected the change or error had that party also conformed, the effect of the changed or erroneous electronic record is avoidable by the conforming party.
Terms Used In Indiana Code 26-2-8-109
- Agreement: means the bargain of the parties in fact, as found in their language or inferred from other circumstances and from rules, regulations, and procedures given the effect of agreements under laws otherwise applicable to a particular transaction. See Indiana Code 26-2-8-102
- Automated transaction: means a transaction conducted or performed, in whole or in part, by electronic means or electronic records in which the acts or records of one (1) or both parties are not reviewed by an individual in the ordinary course in forming a contract, performing under an existing contract, or fulfilling an obligation required by the transaction. See Indiana Code 26-2-8-102
- Electronic: means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities. See Indiana Code 26-2-8-102
- Electronic agent: means a computer program or an electronic or other automated means used to initiate an action or respond to electronic records or performances in whole or in part without review by an individual at the time of the action or response. See Indiana Code 26-2-8-102
- Electronic record: means a record created, generated, sent, communicated, received, or stored by electronic means. See Indiana Code 26-2-8-102
- Person: means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, governmental agency, public corporation, or any other legal or commercial entity. See Indiana Code 26-2-8-102
- Record: means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form. See Indiana Code 26-2-8-102
- Security procedure: means a procedure employed for the purpose of verifying that an electronic signature, record, or performance is that of a specific person or for detecting changes or errors in the information in an electronic record. See Indiana Code 26-2-8-102
- Transaction: means an action or set of actions relating to the conduct of business, commercial, or governmental affairs and occurring between two (2) or more persons. See Indiana Code 26-2-8-102
(A) promptly notifies the other person of the error and that the individual did not intend to be bound by the electronic record received by the other person;
(B) takes reasonable steps, including steps that conform to the other person’s reasonable instructions, to return to the other person or, if instructed by the other person, to destroy the consideration received, if any, as a result of the erroneous electronic record; and
(C) has not used or received any benefit or value from the consideration, if any, received from the other person.
(3) If neither subdivision (1) nor subdivision (2) applies, the change or error has the effect provided by law, including the law of mistake, and the parties’ contract, if any.
(4) Subdivisions (2) and (3) may not be varied by agreement.
As added by P.L.62-2000, SEC.1.
