The Legal Lock





Introduction of E-Contracts

E-contracts is one of the e-commerce branches. It’s like a conventional company in which products and services are changed with a given consideration. The main aspect is that the deal is worked out digitally. It gives sellers the ability to hit the end of the customer without the intervention of the intermediaries.

E-contracts are some type of e-commerce contract created through the interaction between two or more electronically dependent entities such as the e-mail, interactions between an entity and an electronic agent, for example, a computer program, or the interaction of at least two e-computers designed to understand the presence of a contract.

The use of computer systems has evolved in recent years with the advancement of computer innovation, media transmission and data creation; computer systems fill as platforms for electronic interaction around the globe.

By way of the electronic exchange, we don’t merely mean the use of computer networks to swap two human exchange accomplices with the assistance of correspondence but electronic or electronic business often implies agreements between two legal bodies in combination with a program guide, even though it is an operator.

An e-contract is a product framework arrangement demonstrated, carried out and developed. Computer programs are used to robotically monitor e-contract modes of industry.

Present Condition of E-Contract Laws in India

With the modification in the situation, amid the fundamental questions around electronic contacts, various regulatory bodies around the world have revised regulations to accept electronic communication. The Indian Contracts Act,1872, is quite unfitted for dealing with the problem of electronic contracts in the Indian sense of customary law.

The emergence of India as a noteworthy player in computer programming and properties has become an intriguing factor in the field of computer innovation. Economic matters have been perplexed by worldwide industry observers.

There is no question that an underdeveloped country that is almost at the base of progress in one of the world’s most acclaimed and developmental fields will make such an opportunity incredible. India’s Internet market condition makes it very risky. By the end of this year, India has the highest number of site users in Asia.

The condition online is similarly torrential. This remarkable growth of the internet, the associated administrative problems and the need for a legal web-based enterprise in India form the basis for the IT law of 2000 (the law). The Indian Parliament approved the information technology legislation of 2000 to cover certain extraordinary matters about electronic contract agreements and verification.

Concerns related to E-Contracts

In an online scenario, the chances for minors to enter into contracts are the, all the more so with the increased use of the online medium for young people (read minors here). The idea and type of a website or form convey that the person with whom it shares or entered into a contract is remarkable ends up as important to an Internet business entry.

Another problem is the stamping of agreements. If the essential stamping duty alongside the punishments is paid for, an instrument that is not properly stamped cannot be recognized as proof.

However, if the physical reports exist and are not achievable in cases concerning electronic contracts, the paying of a stamp obligation is necessary. In either case, provided that website records have been included with a payment of a stamp obligation and e-stamps are available, it can later become possible that e-contracts are subject to a stamp obligation.

The other immediate concern is acceptance and the recognition of deals online.

The clients do not have a chance to arrange terms and conditions for a tick wrap and counsellor wrap and just need to understand the deal before continuing the order.

Segment 16(3) of ICA stipulates that where a man in a circumstance where the will of the other is overcome is entered into an arrangement with him and exchange is uncontracted by the material or affirmation alluded to therein, the weight of evidence that such a tender could not have an undue consequence could lie on the person in a situation where the other person will be governed by.

Thus, the web-based market aspect has the role to decide that there is no unfair influence in cases of conflict with e-getting.

In addition, section 23 of the ICA says that the thinking or issue of any ascension, whether tabued by legislation or of such a kind, is unlawful so as, if permitted, to circumvent any statute; or that it is false or that the entity or property of a person is damaged or involves, or is considered by the Court as being corrupt or in contradiction with the open policy of any law.

By way of the IT Act and consequent amendments to various establishments, attempts were made to put together e-contracts and various forms of agreements under a typical umbrella.

Comparison of E-contracts and Traditional Contracts

The value and part of the arrangement have not shifted in the Internet industry yet now its essence has changed unbelievably:

The earth’s consensus is exceptional. Conventional negotiations have already existed, the two parties can negotiate with committees, and electronic transactions have taken place in the virtual space, in any instance, when it is specified in the electronic robotic interchange or even people cannot determine if the transaction is moderated.

In other words, the two entities will not satisfy one another. The feature of the evidence or accreditation body depends on hidden key confirmation.

In various areas of the transition, arrangements have been concluded. Bid and sense of responsibility in respect of the time and reception of the Agree (Samanta) element about traditional, contractual and driving conditions portion of the section are uniquely valued.

The kind of contract has improved. There can be no qualifications between primers and duplicates using traditional signing and seas techniques for electronic contracts details found in the knowledge letter.

The privileges and obligations of the Partnership meetings are exceptional. Not only have contractual rights and obligations for the material been regulated in the Electronic Contract, but even the formal rights and commitments, for instance, the legal arrangement between the computerized signs, reflect an extraordinary category of contract.

Some in customary contracts do not add an enormous value to rights and commitments in electronic contact in substantive rights and commitments in legal agreements which are important, for example, data disclosure commitments or insurance coverage.

The execution of an electronic contract and the installation of a multi-faceted contract are more common. Changes in the form of electronic contracts have had a strong influence on contract law. Protected invention legislation, for instance, evidence law.

Forms of E-Contracts

The forms of E-Contracts are as follows:

Click Wrap Contracts:

We normally experience these agreements during browsing the internet, for instance, “I AGREE” or “I DISAGREE” under the aforementioned circumstances. Click-wrap contracts are those by which a participant must usually show his approval to the site or program by clicking on an ‘I Accept,’ or by clicking on ‘I Disagree,’ after moving through the terms and conditions given in the site or program.

These are the most common forms of contracts used on the Internet, be it authorization to access a site, download a product or sell a website. The key distinction between the contracts for clickwraps and e-mails is that they take shape automatically.

Shrink-wrap Agreements:

These are the arrangements that normally involve the CD of Rom tools. Standards and conditions shall be set down on CD Rom. Often there are extra words when certain Roms’ licenses are seen on the computer when the CD is downloaded.

If the current provisions are not to your taste, the customer is entitled to restore the new terms and conditions. As specified in Section 13 (2) of the IT Act, when the addressee receives electronic documents, notification of a bid or approval in the web-click mode is achieved.

Electronic Data Interchange:

Such are contracts that are used in commercial transactions such that each transaction in the trading period can almost be handled without moving data from one device to another documentation.

Concerning the other two, information is shared and Contracts between two machines and not between the machine and a person.


It can be argued successfully that the electronic form of contract has emerged as a spectacular type of agreement and has essentially enhanced its esteem. The Indian legislature has deliberately introduced the IT Act 2000 and the Electronic Commerce Act 1998, intending to control the rights and liability of collections where electronic contracts are required.

The proof agreements allow electronic contracts to be concluded. The offer and appreciation offered in knowledge messages are considerable.

The demonstration agreements must be read in compliance with the Indian Contract Act,1872 and the intent of the agreement should not be in denial of the Contract Act agreements. We have also found that the various legal options presented and accepted in e-mails would be considered valid and that the arrangement in such a manner would be bound.

Electronic contracts are a combination of cyber law and contract law, and thus all of them have their strength.