Introduction

Information and Communication Technology has revolutionized businesses around the globe, transactions like sale and purchase of goods, transfer of funds etc are done in a click of a button and terms and conditions of these types of transactions often referred as electronic contract or e-contract and are executed on the digital platform or medium.

What is an Electronic or E- Contract?

An Electronic or E-contract is very much similar to a paper-based contract, however, the mode of execution and validation of this type contract is different from paper based contract and has separate laws governing validity, execution and enforcement of e-contract.

Electronic Contract Under Indian Laws

The Information Technology Act, 2000 and the rules framed there contains various the provisions such as communication of the proposal, acceptance of proposal, revocation of proposal and acceptance in electronic form or via electronic record leads to formation of e-contract.

The Indian Evidence Act, 1872 recognizes E-contract as “document” includes any information contained in an electronic record which is printed on a paper, stored, recorded, or copied in optical or magnetic media produced by a computer. Admissibility of such a document in any proceeding as an evidence will largely depend if such document conforms to the provisions of Section 65 B of Indian Evidence Act,1872.

The Indian Contract , 1872 recognizes the conventional form of contract, i.e. paper based contract and oral contract, made by the free consent of the contracting parties who are competent to contract for a lawful consideration with a lawful object and are not expressly declared to be void. With the development of technology e-contract came into play based on the basic requirement, to be considered as a valid contract, of the applicable provisions of Indian Contract Act,1872. Hence, the enforceability of electronic contract is not prohibited under this Act subject to the meeting of essential elements necessary to be considered as a valid contract.

Enforceability of Electronic Contract

E-contract may often appear to be simple as it is executed, sometimes in form of terms and conditions, via digital media. However, enforcement of E-contract at times can be much complicated if provisions such as governing laws and jurisdiction (especially when parties are residing in two or more jurisdictions and are governed by different set of laws) are not carefully thought through and crafted in E-contract.

Conclusion

In coming days and considering the current pandemic (COVID -19) situation, paper based contract may eventually be replaced by Electronic contract. E-contract also dispenses the requirement of face to face or personal interaction between the contracting parties which is generally required under conventional contract.

Blog Credit to “Vikas Srivastava” & “Husein Kagalwala“