Take care when you text

In a world first, a Canadian judge has deemed that a "thumbs up" emoji in a text equated to confirmation of a legally binding contract.

When Canadian grain and crop company South West Terminal (SWT) sent a picture of a contract to farming corporation Achter Land & Cattle and received the thumbs up emoji in response, it believed the two had entered into a binding contract to deliver 87 tonnes of flax.

After the November 2021 delivery date rolled around without the flax, SWT took Achter owner Chris Achter to court to seek damages for the alleged breach of contract.

In delivering his verdict the judge said that “under these circumstances a [thumbs-up] emoji is an ‘action in electronic form’ that can be used to allow to express acceptance.”

He also took into account the parties’ “long history of working together and Mr Achter’s typical response to pictures of the contracts sent by SWT with “curt” words, such as “OK” and “looks good”.”

Although we don't know how this case would have been interpreted here in New Zealand, it's a good reminder to take care when having contractual or business discussions over text (or in any other written format).

If you're ever in doubt over a contract or process, make sure to get in touch with our team. We can review the situation and let you know the best approach.