The internet has transformed the manner of conducting commercial transactions and has created regulatory gaps. These regulatory gaps may impact the effective development of electronic commerce. Attempts are being made to regulate electronic contracts both at the national and international level. The present research analyses these attempts, in particular the Electronic Transaction Legislation of Australia and the proposed new amendments. It also examines the role of international developments in assisting countries in their regulatory attempts. The research highlights the extent to which gaps are being filled and also examines the inadequacies of the Electronic Transactions Legislation of Australia.