News By/Courtesy: Priyanka Patnaik | 17 May 2020 7:17am IST


  • Kinds of E-contracts
  • Enforceability
  • Jurisdiction of E-contracts

Electronic contracts are the contracts that take place without the meeting of parties. They are similar to paper-based commercial contracts. Where commercial transactions are conducted electronically.
Kinds of E-contracts 
  • Browse Wrap Agreements: These kinds of agreements are usually done by the use of the website. These include the terms and conditions of the website like user agreements, terms of service which are used by various e-commerce websites. They are binding on the contracting party.
  • Shrink Wrap Agreements: These kinds of agreements appear on manuals on the software products. The terms and conditions are binding on the party once the product is bought.
  • Click Wrap Agreements: They are contracts that require the contracting party 's consent through I accept or OK button. If the party didn't accept the terms of the particular software then he /she cannot use or purchase the product.
The user of a commercial website is always asked to read and agree to the terms and conditions before purchasing or receiving the service. These are usually clickwrap agreements and easily implementable whereas the browsewraps agreements are difficult to implement.  The enforceability of internet contracts has always been questioned. It is easier fo a written contract. Since we are in the digital age and E-contract are well drafted and can be enforceable in the future as well.
Jurisdiction of  E-contracts 
The difference between a traditional contract and E-contract is that traditional contracts are where the parties meet and execute the contract at an agreed place and time and signing the documents. Whereas in E-contract the parties meet online and are located in various places. So here it is difficult to determine the jurisdiction. However, the parties can agree upon a particular jurisdiction which is mostly the location of the business of one of the contracting parties or a agree jurisdiction by all the contracting parties.
Signature of  E-Contracts 
A digital signature replaced an electronic signature in the information technology amendment Act 2008. A digital signature is technology-specific. An electronic signature is unbiased and general. It can be either be typed or digitized image of a handwritten signature. The replacement was to expand e-contracts.
The validity of E-Contract in India 
The Indian contract 1872 has no provision as such that prohibits the enforceability of electronic agreements. All it requires is that it satisfies all the basic provision do the contract such as free consent, competency of contract, lawful consideration, lawful object. Usually, it has been debated that there is no negotiation in E-contracts but there the option of taking it or leave.

Section Editor: Pushpit Singh | 17 May 2020 17:17pm IST

Tags : #E-contractvalidity

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