Court Confirms “Thumbs Up” Constitutes a Contract Signature

The case earned increased attention as more and more business, including in agriculture, is conducted digitally.

The judge ruled based on the dialogue that the deal was “at least verbally struck.” The judge directed the Canadian farmer to pay the grain elevator $82,000 plus interest and costs for failing to deliver the flax.
The judge ruled based on the dialogue that the deal was “at least verbally struck.” The judge directed the Canadian farmer to pay the grain elevator $82,000 plus interest and costs for failing to deliver the flax.
(Lori Hays)

A Canadian farmer’s response with a thumbs-up emoji to a grain contract has been a source of legal discussion and action for the past three years. Earlier this week, a Canadian appeals court upheld the lower court’s decision the dialogue of the deal and the use of the emoji in a text message confirmed the farmer’s contract with the grain elevator.

The case originates from Saskatchewan with farmers Bob and Chris Achter. The first judge ruled Achter owed South West Terminal, Ltd $82,000 plus interest and costs for failing to deliver the flax per the contract.

You can read our original report on the series of events and resulting court case here.

Archer filed an appeal, which was decided on by a three-judge panel.

“Because Mr. Achter sent that emoji in a text message from his personal cellphone, there was electronic data that he knew would identify him as the maker of the mark and communicate his agreement to the contract,” wrote Chief Justice Robert Leurer in the appeal decision.

The case earned increased attention as more and more business, including in agriculture, is conducted digitally. Farm Journal research shows a rise in farmers buying inputs for their farm online, and more than one-third of farmers have their retailer’s app on their phone.

Syngraffi, a Canadian signature company, says this case highlights the need for better understanding of how business is conducted digitally.

“It is important in the drive for frictionless eCommerce that the value of human consent to a contract in a digital world be retained,” says Scott Nettie, General Counsel for Syngrafii. “This recognition by the Court advances eCommerce by drawing a cautionary line at the edges of consent and reminds people that intent will always triumph over form, so it remains critical when executing documents to be able to evidence intent. Form alone may not suffice.”

You can find the full court documents here.

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