The Indian Contract Act, 1872

E-Contracts

Priya asked Mr. Lexi if she can make a contract with a seller in a different city without meeting him in person?

Mr. Lexi says that Priya can make an E-Contract with the seller without meeting him person.

What is an E-Contract?
An E-Contract is any contract which is formed by negotiation of two or more parties through the use of electronic means.
What are the essential elements of an E-Contract?
All E-Contracts should fulfill the essential conditions of a valid contract under the Indian Contract Act, 1872.
Are E-Contracts legally recognized under Indian law?
E-Contracts are legally recognized under the Information Technology Act, 2000.
What are the different formations of E-contracts?
●Email – A valid agreement can be created by exchanging email communications
●Website forms – Clicking “I Agree” on websites will make the contract valid by filling an online order form.
●EULA (End User License Agreement) – “I accept” or “I accept the terms” are clicked by the party.
What are the different types of E-contracts?

●Browse-wrap agreement
●Click-wrap agreement
●Shrink-wrap agreement

What is a Browse-wrap Agreement?
It is an agreement where the user of any website has to accept the terms and conditions of it in order to enjoy continuous usage of the website.
What is a Click-wrap Agreement?
Click- Wrap is an online agreement between a user and a company where when the user clicks on “I accept” or “OK”, it means that they have agreed to the terms and conditions of the contract and can proceed to download, purchase or use the product/software. This type of agreements are mostly found as a part of the installation process of software packages.
What is a Shrink-wrap agreement?
Shrink-wrap agreements are generally a licensing agreement that are packaged with the software purchases. The person that buys such an software has to abide by the terms and conditions of the product. However, there is no precedent in India to support its validity before the Indian law.
What are the exceptions to E-contracts?
●Negotiable Instruments
●Power of Attorney
●Trust Deed
●Will
●Sale deed or Conveyance Deed with respect to the immovable property of any documents relating to any interest in an immovable property.
Are electronic signatures and digital signatures different?
An electronic signature is an electronic symbol attached to a contract, used by a person with an intent to sign. Digital signatures guarantee that an electronic document is authentic. Both electronic and digital signatures are binding.
What is the evidentiary value of E-Contracts?
Indian courts recognize electronic documents under Section 65-A of Indian Evidence Act,1872 and the procedure for furnishing electronic documents as evidence is provided under 65-B of Indian Evidence Act, 1872.
What are the remedies available for breach of E-Contract?
There is no separate law or rule in case of breach of e-contracts. The remedies stated for breach of contract under the Indian Contract Act, 1872 can be followed.

In A Nutshell

  • E-Contract is any contract which is formed by negotiation of two or more parties through the use of electronic means. They are legally recognized under the Information Technology Act, 2000.
  • The three major forms of E-Contract are 1. Emails 2. Website forms 3. End-User License Agreements.
  • The types of E-Contracts are 1. Browse-wrap agreements 2. Click-wrap agreements 3. Shrink-wrap agreements
  • The five exceptions to E-Contracts are 1. Negotiable Instruments 2. Power of Attorney 3. Trust Deed 4. Will 5. Sale deed or Conveyance

    Deed with respect to the immovable property

  • Indian courts accept E-Contracts as evidence.

Please note: This information has been made available to you for your benefit on an ‘as is’ basis, and is only for your information. It does not constitute legal advice and cannot substitute professional legal advice. Our disclaimer policy can be viewed here ( Disclaimer)

Upcoming Act

The Companies Act, 2013

error: Content is protected !!