(A) If a change or error occurs in the transmission of an electronic record between parties to a transaction:

(1) the conforming party may avoid the effect of the changed or erroneous electronic record, if the parties have agreed to use a security procedure to detect changes or errors and one party has conformed to the procedure but the other party has not and the nonconforming party would have detected the change or error had he also conformed;

Terms Used In South Carolina Code 26-6-100

  • 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 giving the effect of agreements under law otherwise applicable to a particular transaction. See South Carolina Code 26-6-20
  • Electronic: means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities. See South Carolina Code 26-6-20
  • Electronic agent: means a computer program or an electronic or other automated means used independently to initiate an action or respond to electronic records or performances in whole or in part, without review or action by an individual. See South Carolina Code 26-6-20
  • Electronic record: means a record created, generated, sent, communicated, received, or stored by electronic means. See South Carolina Code 26-6-20
  • Individual: means a single natural person; one human being. See South Carolina Code 26-6-20
  • Person: means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, governmental agency, public corporation, or other legal or commercial entity. See South Carolina Code 26-6-20
  • 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 South Carolina Code 26-6-20
  • 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 South Carolina Code 26-6-20
  • Transaction: means an action or set of actions occurring between two or more persons relating to the conduct of business, commercial, or governmental affairs. See South Carolina Code 26-6-20

(2) an individual may avoid the effect of an electronic record that resulted from an error made by the individual in dealing with the electronic agent of another person if the electronic agent did not provide an opportunity for the prevention or correction of the error and, at the time the individual learns of the error, the individual:

(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 reasonable instructions of the other person, to return or destroy, as instructed, the consideration received as a result of the erroneous electronic record; and

(c) has not used or received any benefit or value from the consideration received from the other person.

(B) If subsection (A) does not apply, the change or error has the effect provided by other law, including the law of mistake, and the parties’ contract, if any.

(C) The provisions of subsections (A)(2) and (B) shall not be varied by agreement.

  Previous section
Next section  
 Chapter 6 Contents