Electronic data interchange
Electronic data interchange, or EDI, is the computer to computer exchange of business documents, such as purchase orders and invoices, between trading partners in a standard electronic format. It is a technology and business term rather than a legal one. Its legal effect usually depends on a trading partner agreement setting out how electronic messages create binding obligations.
How BC law treats it
In BC, the Electronic Transactions Act, SBC 2001, c 10 generally allows contracts to be formed and records to be kept in electronic form. EDI arrangements are mainly governed by the trading partner agreement and ordinary contract law.
What it means for your business
A business using EDI should have a trading partner agreement covering when messages are binding and how errors are handled.
Risks and common mistakes
Without clear terms, a business may be bound by an erroneous automated order or have no remedy for one.
For the full explanation, see our entry on Electronic contracts.
General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.
