The web has made it more convenient in nearly every aspect of life. It seems to have succeeded in connecting people across the world. Ultimately, people are more relaxed, and everything is an easy click away. The highly positive effect on the business world with the growth of e-commerce across all sectors. Technological advances and electronic media have automated companies and legal or formal documents. The traditional contract and agreement documents written with paper and pen are now replaced with online contracts, also known as electronic contracts. Therefore, we can say that e-contracts are the digital version of the traditional agreement.
But the essential components of a contract will not be distinct since e-contracts are covered by the Indian Contract Act of 1872, and the other provisions that are governed by the Information Technology Act, 2000, Indian Evidence Act of 1872, Pay and Settlement Act of 2007 as well as the Electronic Commerce Act, 1998. Since cyber-contracts are covered by laws such as the Indian Contract Act of 1872, The essential components of a valid electronic contract are the same as the traditional contract. Additionally, Clickwrap agreements, Browsewrap agreements, and Shrinkwrap agreements are three common types of e-contracts.
These are the fundamental elements of an electronic contract.
The involvement of two legal parties to sign an agreement or contract. Notice: In cyber-contracts, the participants in a contract are usually identified as the Originator and Addressee
Electronic mediums are used for
Consent to use the information freely
Legal consideration and legal object
E Acceptance and E Proposal
Intention to create a legal relationship and certainty/possibility of legal performance
Legal and regulatory guidelines in India are essential to the legitimacy of cyber-contracts
Indian Contract Act, 1872
The laws enacted by the Act do not limit electronic agreements or contracts if they do not violate the general rules of a valid and legal contract that is enforceable by law. According to Section 2. (b) of the Act, accepting the legal offer and other elements are considered valid criteria for forming the contract. The linking to an E-Contract is a sign of acceptance if we agree by clicking “I agree” to all the conditions and terms.
Section 65-A of the Indian Evidence Act, 1872
In line with the provisions of this section, which was enacted by it, the Indian Evidence Act of 1872 and the Indian Evidence Act of 1872, the courts in India recognize electronic documents under the force of specific rules for evidence related to the content and content of electronic records. However, it is relevant to section 65-B of the Act and the terms and conditions set out, making it admissible before the court.
Section 10A And Section 2 (p) of the Information Technology Act, 2000
According to section 10A of the Act, If the contract’s formation complies with all requirements as per the law’s requirements, it cannot be invalidated solely due to the medium used to create it. Additionally, in e-contracts, digital signatures are needed to verify the communications between the parties as defined in Section 2. (p) in the Information Technology Act, 2000.
Electronic Commerce Act, 1998
It is believed that the Indian legislative system introduced the Act to regulate cyber contract issues. The Act has 15 divisions and establishes the fundamental regulations and guidelines for authentic electronic agreements.
Security and legal issues encountered by E Contracts
Judicial Issues
The choice of law applicable
It is a little tricky to decide what law governs the dispute in the case of cyber-based contracts without the parties’ decision, i.e., the person who originated the contract and the one who is sending it. Therefore, various civil laws can be affected when deciding the relevant substantive laws for cross-border commercial transactions.
The court’s choice of jurisdiction
Since cyber-based contracts are not paper-based, it is challenging to establish a court’s jurisdiction in case of a breach of the agreement or any clauses of the deal. Still, according to Section 13 (3) of the IT Act, the electronic record is believed to have been delivered at the place of business of the source. In contrast, the recipient, in turn, the recipient is believed to be located at the location where the recipient received the identical. In the event, a problem could be raised if the place of the computer’s source is different from the company’s or communication source’s central location. In addition, if the parties are negotiating electronic contract terms across other boundaries of the globe.
Compatibility and consent for free
Section 10 of the Indian Contract Act primarily governs contracts incorporating e-contracts within India. In turn, Sections 10, 11, 11, and 12 of the Act stipulate the full consent and the ability of both parties to sign the contract, which are crucial conditions for a valid contract to be formed legally. This also applies to cyber-based agreements; an issue can arise where an unqualified person, whether minor or not, could accidentally or fraudulently gain access to the deal by clicking ‘I accept the contract conditions.