Innovation in technology frequently leads to innovation in law. A recent example is the June 2009 decision in Rosen v. Evolution Holdings LLC,1 enforcing a lease agreement formed via text messages exchanged between the parties. The potential enforceability of commitments made in text messages, e-mail and other forms of electronic communication, as well as the potential loss of confidentiality and the attorney-client privilege when using electronic communications, requires vigilance by co-op and condominium boards in the use of such communications. At the same time, electronic communications have great potential to facilitate board governance and communication with apartment owners by providing flexibility and rapid dissemination of information.

This column highlights federal and state laws regarding electronic communications, and relevant case law. This column also offers suggestions for modifying board practices, co-op proprietary leases and bylaws, and condominium bylaws to permit the use of electronic communication and provide boards and managers with modern management tools in three areas: building management, board action and communication with apartment owners.

Electronic Contract Formation

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