“LEGAL ISSUES INVOLVED IN ELECTRONIC CONTRACTS”

SUBMISSION IN PARTIAL FULFILMENT OF THE COURSE TITLED CONTRACT LAW

– 2 FOR OBTAINING THE DEGREE BBA. LLB (HONS.) DURING THE ACADEMIC
YEAR 2019-20

SUBMITTED BY: -
Aridaman Raghuvanshi
Roll: 2013
3rd Semester

SUBMITTED TO: -

Faculty of Contract Law-2

Dr. Vijay Kumar Vimal

SEPTEMBER, 2019

CHANAKYA NATIONAL LAW UNIVERSITY

NYAYA NAGAR, MITHAPUR, PATNA - 800001
DECLARATION BY CANDIDATE

I, Aridaman Raghuvanshi, student of Chanakya National Law University hereby

declare that the work reported in the [Link].B. (HONS.) project report
entitled: LEGAL ISSUES INVOLVED IN ELECTRONIC CONTRACT
submitted at Chanakya National Law University, Patna is an authentic record of
my work carried out under the supervision of Dr. Vijay Kr. Vimal. I have not
submitted this work elsewhere for any other degree or diploma. I am
responsible for the contents of my Project Report.

(Signature of the Candidate)

NAME: Aridaman Raghuvanshi

Roll: 2013

COURSE: B.B.A., LL.B. (Hons.)

SEMESTER: 2019-2020 (3rd).

SESSION: 2018-2023.

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ACKNOWLEDGEMENT

I would like to thank my faculty Dr. Vijay Kumar Vimal whose guidance
helped me a lot with structuring of my project. I take this opportunity to
express my deep sense of gratitude for his guidance and encouragement
which sustained my efforts on all stages of this project.

I owe the present accomplishment of my project to my friends, who helped

me immensely with materials throughout the project and without whom I
couldn’t have completed it in the present way.

I would also like to extend my gratitude to my parents and all those unseen
hands that helped me out at every stage of my project.

THANK YOU

NAME: Aridaman Raghuvanshi

Roll: 2013

COURSE: B.B.A., LL.B. (Hons.)

SEMESTER: 2019-2020 (3rd)

SESSION: 2018-2023

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CONTENTS
DECLARATION BY CANDIDATE ................................................................................................... a

ACKNOWLEDGEMENT ................................................................................................................. b

CONTENTS .................................................................................................................................. c

CHAPTER 1: INTRODUCTION .............................................................................................. 1

CHAPTER 2: FORMS OF ELECTRONIC CONTRACT ............................................................ 3

current situation of e-contract laws in india ........................................................................... 3

CHAPTER 3: ISSUES RELATING TO E-CONTRACTS ........................................................ 5

CHAPTER 4: LEGAL ASPECT ................................................................................................... 8

THE INFORMATION TECHNOLOGY ACT, 2000 AND INDIAN CONTRACT ACT,

1872 ........................................................................................................................................ 8

THE ELECTRONIC COMMERCE ACT, 1998 ................................................................. 10

CHAPTER 5: COMPARATIVE STUDY ................................................................................... 12

DISTINCTION BETWEEN E-CONTRACTS AND TRADITIONAL CONTRACTS ..... 12

E-CONTRACTS IN INDIA ................................................................................................. 13

ELECTRONIC CONTRACT IN UNITED STATES OF AMERICA ................................ 14

ELECTRONIC CONTRACT IN MALAYSIA ................................................................... 14

CHAPTER 6: CONCLUSION & SUGGESTION .................................................................. 16

CHAPTER 7: BIBLIOGRAPHY ............................................................................................. 17

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CHAPTER 1: INTRODUCTION

With the headways in computer innovation, media transmission and data innovation the
utilization of computer systems has increased extensive fame in the current past; computer
systems fill in as channels between for electronic exchanging over the globe. By electronic
exchanging we don't simply mean the utilization of computer systems to go into exchange
between two human exchanging accomplices by encouraging a correspondence yet electronic
exchanging or electronic business additionally implies those agreements which are entered
between two lawful people alongside the guide of a computer program which goes about as
an operator notwithstanding when it has no aware of its own yet in addition by starting it. An
e-contract is an agreement demonstrated, executed and established by a product framework.
Computer programs are utilized to robotize business forms that oversee e-contracts. E-
contracts can be mapped to between related projects, which must be indicated deliberately to
fulfil the agreement necessities. These projects don't have the abilities to deal with complex
connections between gatherings to an e-contract. E-contract is any sort of agreement shaped
over the span of web based business by the connection of at least two people utilizing
electronic means, for example, email, the cooperation of a person with an electronic
specialist, for example, a computer program, or the communication of no less than two
electronic operators that are modified to perceive the presence of an agreement. Customary
contract standards and cures additionally apply to e-contracts. This is otherwise called
electronic contract. With the changing needs of time, another idea of E-Contracts or
Electronic Contracts has concocted the improvement of Electronic Commerce framework
over the globe. Electronic trade can be characterized as "Electronic purchasing1 and offering
on the Internet and incorporates every one of the exercises that a firm performs or offering
and purchasing administrations and items utilizing computers and correspondence
advancements." The need and prerequisite for electronic type of agreement can essentially be
credited to the requirement for a speedy, productive and efficient method of contracting. The
virtual the internet being efficient and unbound by difficulties of separation gives an open
door for gatherings to go into an agreement over web. In the electronic age, the entire
exchange can be finished in a moment or two, with the two gatherings just fastening their
advanced marks to an electronic duplicate of the agreement. There is no requirement for

1
SV Joga Rao, Computer Contracts & Information Technology Law (2nd Edition, 2005), pg. 182(Information
Technology. Mathematical Markup Language (MathML) Version 3.0 2nd Edition)

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postponed messengers and extra voyaging costs in such a situation. In a worldwide business
condition, parties are going into various sorts of exchanges. These may incorporate rent
understandings, contracts representing the deal and buy of products, debatable instruments,
advance ascension and so forth. With a specific end goal to help electronic exchanges
comparably as ordinary exchanges electronic contracts are required, which play out a similar
capacity and meet an indistinguishable necessities from traditional this paper mainly aims to
study the validity of e-contract and further analyse the rules and provisions under the ICA
and IT act and finally tries to enumerate the forms of e contract.

Out of the nuts and bolts of the agreement law and the contracting procedure depicted in the
past areas, the accompanying legitimate necessities can be condensed upon electronic
contracts:

 Clear recognizable proof of the contracting parties

 Clear sign of the subject of the agreement
 Clear sign of the day and age of legitimacy
 The contract needs to host substantial marks of the included gatherings
affirming their acknowledgment of the liabilities set down in the agreement.
The mark ought to be joined by a date demonstrating the beginning of the
agreement legitimacy.
 Non-renouncement, i.e. no one ought to have the capacity to change the
substance of the agreement after the agreement is agreed upon.

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CHAPTER 2: FORMS OF ELECTRONIC CONTRACT
An electronic contract is an understanding made and "marked" in electronic frame — as it
were, no paper or other printed copies are utilized. For instance, you compose an agreement
on your computer and email it to a business relate, and the business relate messages it back
with an electronic mark demonstrating acknowledgment. An e-contract can likewise be as a
"Tick to Agree" contract, generally utilized with downloaded programming: The client clicks
an "I Agree" catch on a page containing the terms of the product permit before the exchange
can be finished. Order of the agreements can be of two sorts i.e. web-wrap ascension and
therapist wrap understandings. We regularly go over these e-contracts in our regular daily
existence however are ignorant of the legitimate complexities associated with it. Web-wrap
understandings are electronic ascension which requires consent of the gathering by method
for tapping the "I concur" or "I affirm" interface, for instance in the event that EBay by which
we acknowledge the terms and conditions specified by the merchant. Then again Shrink-wrap
ascension are those, which are acknowledged by a client when programming is, introduced
from a CD-ROM e.g. Microsoft Office programming. Before examining these ideas we
should know how such an agreement is gone into, for comfort let us expect the most
straightforward web wrap understanding entered between the purchaser and dealer through a
computer arrangement.

CURRENT SITUATION OF E-CONTRACT LAWS IN INDIA

With the adjustment in situation, numerous governing bodies over the globe have actualized
laws to perceive electronic contacts, in spite of the underlying worries in regards to the same.
To the extent India is concerned, the customary law identifying with contracts i.e. The Indian
Contract Act.1872 was very unequipped to manage the issue of Electronic Contracts. A
fascinating element rising in the realm of computer innovation has been the ascending of
India as a noteworthy player in the computer programming and assets part. The financial
matters of this factor has perplexed market analysts around the world. An underdeveloped
nation, which positions nearly at the base of the improvement could bring to such potential up
in one of the world's most greetings tech and development situated segments, is without a
doubt astounding. India's situation in the Internet business makes it extremely hazardous.
India will have the biggest number of web clients in Asia by this year-end. The online
business situation is likewise bullish. This remarkable development of web, the related
administrative apprehensions that run with it and the requirement for giving a legitimate
system to web based business in India shapes the foundation in which the Information
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Technology Act, 2000 (the Act) should be valued. The Information Technology Act, 2000
was authorized by the Indian Parliament to comprehend some exceptional issues which came
in the arrangement and verification of Electronic Contracts.

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CHAPTER 3: ISSUES RELATING TO E-CONTRACTS
In an online situation, the likelihood of minors going into contracts builds, all the more so
with the expanding use of online medium among youngsters (read minors here) and their
inclination to shop on the web or buy online products/administrations. It ends up essential for
an online business entry to keep such plausibility in thought and qualify its site or shape
expressing that the person with whom it is exchanging or going into the agreement is a
noteworthy. Stamping of agreements is yet another issue. An instrument that isn't properly
stamped may not be allowable as confirmation unless the important stamp obligation
alongside the punishment has been paid. Be that as it may, installment of stamp obligation is
material if there should be an occurrence of physical reports and isn't achievable in instances
of e-contracts. In any case, as the installment of stamp obligation has gone on the web and e-
stamp papers are accessible, it can turn into a plausibility later that stamp obligation may be
asked on e-contracts also.

The other urgent issue is the assent and the way offers are acknowledged in an online
domain. In a tick wrap and psychologist wrap get, the clients don't have any chance to
arrange the terms and conditions and they just need to acknowledge the agreement before
initiating to buy. Segment 16(3) of the ICA gives that where a man who is in a situation to
overwhelm the will of another, goes into an agreement with him, and the exchange shows up,
on its substance or on confirm cited, to be unconscionable, the weight of demonstrating that
such contract was not prompted by undue impact might lie upon the individual in a situation
to rule the will of the other. Thus, in instances of disagreement regarding e-gets the element
doing the web based business will have the onus to set up that there was no undue impact.

Further, segment 23 of the ICA gives that the thought or question of any ascension is
unlawful when it is taboo by law, or is of such a nature, to the point that if allowed, it would
overcome the arrangements of any law; or is false, or includes or suggests damage to the
individual or property of another, or the Court sees it as corrupt or contradicted to open
strategy. By method for the IT Act and consequent changes to different establishments, there
has been an endeavor to bring e-contracts and different types of agreement under a typical
umbrella. A couple of the vital issues looked by the gatherings in course of execution of e-
contracts have been examined beneath. Segment 4 of the Contracts Act, when perused with
Section 13 of the IT Act, suggests that a coupling e-contract would occur once the acceptor of
the agreement dispatches the electronic record to such an extent that it enters a computer
asset outside the control of the acceptor. The Supreme Court in Bhagwandas Goverdhandas

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Kedia versus M/S. Girdharilal Parshottamdas2 held that Section 4 of the Contract Act is just
relevant in instances of non-immediate types of correspondence and would not have any
significant bearing when momentary types of correspondence (like phone, message and so
forth.) are utilized. As Internet correspondence does not comprise of an immediate line of
correspondence between the sender and recipient of email, email messages would go under
the classification of non-prompt type of correspondence, subsequently drawing in the
arrangements of Section 4 of the Contract Act. In perspective of the said statutory
arrangements and the view taken by the Supreme Court, it might be gathered that once the
acknowledgment message is placed over the span of transmission by method for an email, a
coupling contract appears, independent of the way that whether such acknowledgment
message achieves the letter box of the offeror or not and if effectively transmitted, regardless
of whether the other party has the learning of such receipt or not.

The Civil Procedure Code, 1908 enables a gathering to pick the locale either based on the
reason for activity or the place of business of the litigant. In any case, according to Section 13
of the IT Act an electronic record is considered to be dispatched at where the originator has
his place of business, and is regarded to be gotten at where the recipient has his place of
business. Thus, despite the place from where an electronic record is dispatched or gotten, the
place of agreement (if there should arise an occurrence of an e-contract), is constantly
regarded to be the place of business of the offeror or the acceptor. In the occasion, the
jurisdictional choice accessible to party based on reason for activity identifies with the place
of dispatch or receipt of the electronic record, the main jurisdictional road forgot for such a
gathering might be the place of business of the other party. Along these lines, the rights
allowed for an abused gathering under the CPC might be considerably shortened by
righteousness of Section 13 of the IT Act. Despite the fact that the IT Act guarantees that the
legal framework in

India perceive advanced signature as a legitimate lawful instrument for verifying an e-

contract. Be that as it may, such a validation under the IT Act has additionally been subjected
to deviated crypto framework and hash work, along these lines significantly limiting the
extent of the said confirmation device. Further, unique countries have approved distinctive
benchmarks of electronic mark, which may go about as an obstacle concerning requirement
of cross outskirt contracts. The likelihood of loss of information/records by virtue of
specialized blunders can't be precluded if there should arise an occurrence of web based

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business. Be that as it may, not at all like the Uniform Computer Information Transactions
Act In the United States, the IT Act does not catch arrangements for such circumstances.

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CHAPTER 4: LEGAL ASPECT

THE INFORMATION TECHNOLOGY ACT, 2000 AND INDIAN

CONTRACT ACT, 1872
The goals of the Information Technology Act, as sketched out in the introduction, was to give
lawful acknowledgment to E-business exchanges, encourage Electronic Governance and to
revise the Indian Penal Code, Indian Evidence Act 1872, the Bankers' Book Evidence Act
1891 and the Reserve Bank of India Act 1934. The Act likewise settled an administrative
system for digital laws and sets down discipline administrations for various digital
wrongdoings and offenses. Concerning Electronic Contracts and arrangements for web based
getting the arrangements of the IT Act, 2000 are pretty much like the arrangements of
UNCITRAL Model Laws but a couple of minor changes. The Indian IT Act, 2000 anyway
does not have any express arrangement with respect to the legitimacy of online contracts. The
reason being the specialized meaning of agreement under Indian Contract Act, 1872. The
Indian Contract Act 1872 accords statutory impact to the fundamental precedent-based law
rule that a legitimate contract might be made on the off chance that it is made by free assent
of gatherings, skilful to contract, for a legal thought and with a legal protest and which isn't
explicitly announced void. The Contract Act does not recommend a specific strategy for the
correspondence of offer and acknowledgment. Consequently, there is no prerequisite of
composing for the legitimacy of agreements, with the exception of in such situations where
the necessity of composing is particularly ordered by law. Hence, the legitimacy of online
contracts couldn't have been tested exclusively on specialized grounds even before the
Information Technology Act came into constrain. While Section 3 gives confirmation to
electronic records (counting E-Contracts) while should be possible through computerized
marks or a type of electronic acknowledgment to the terms of an agreement. Segment 4 and
Section 5 give lawful acknowledgment to electronic records and advanced marks separately.
Hence if a man through electronic medium gives his consent to some particular terms of the
agreement, he would not be in a situation to disprove it later. The electronic records
consequently framed are thought to be substantial for all reasons and might be held if there
should arise an occurrence of a debate emerging with regards to the terms of the agreement,
as per arrangements of Section 7. Area 13 of the IT Act, 2000 clarifies and elucidates, bury
alia, when the receipt and dispatch of electronic records happen and is implied for finding out
of the season of dispatch and receipt of data, which is a pertinent factor in numerous

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agreements. This arrangement goes about as a 'useful proportionate' of offer and
acknowledgment in the event of Electronic Contracts and furnishes these agreements with
measure up to lawful sameness as the paper based authoritative ascension do. Area 13 of the
Information Technology Act, in this manner, just offers a structure for understanding the
development of E-contracts in India. It doesn't, in any capacity, change or adjust the current
substantive law of agreement. Keeping in mind the end goal to find out the development of
electronic contracts, one needs to peruse Section 13 together with Section 4 of the Contract
Act which articulates certain guidelines in regards to the correspondence of
recommendations, acknowledgment and disavowal: "The correspondence of a proposition is
finished with regards to the learning of the individual to whom it is made. The
correspondence of an acknowledgment is finished, — as against the proposer, when it is
placed in a course of transmission to him, in order to be out of the energy of the acceptor; as
against the acceptor, with regards to the information of the proposer" Segment 13 of the
Information Technology Act proves to be useful while applying these guidelines to E-
contracts. (Kolekar) For instance, on account of an acknowledgment made by an electronic
record, a joined perusing of the two areas will develop the accompanying standards. The
correspondence of an acknowledgment is finished as against the offeror, when the electronic
record is dispatched with the end goal that it enters a computer asset outside the control of the
originator (acceptor) and as against the acceptor, when the electronic record enters any data
framework assigned by the offeror for the reason, or, if no framework is assigned for the
reason, when the electronic record enters the data arrangement of the offeror, or, if any data
framework has been assigned, yet the electronic record is sent to some other data framework,
when the offeror recovers such electronic record.(Harlow and Rawlings; Barnett) Two new
segments Section 7A and 10A in the changed Act strengthen the identicalness of paper based
archives to electronic reports. Segment 7A in the altered Act makes review of electronic
archives additionally fundamental wherever paper based records are required to be evaluated
by law. Area 10A gives lawful legitimacy and enforceability on contracts shaped through
electronic means.

These arrangements are embedded to clear up and fortify the lawful standard in Section 4 of
the IT Act, 2000 (Kolekar; Kamath)that electronic archives are at standard with electronic
reports and e-contracts are legitimately perceived and worthy in law. This will encourage
development of online business action on the web and fabricate netizens certainty.

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THE ELECTRONIC COMMERCE ACT, 1998
With the coming of new innovative changes, the Indian Government and Legislatures needed
to think upon to convey significant changes to the current existing(Barnhill) legally binding
laws in the nation, helping them to fortify as per the expanding needs of the general public.
However, Justice Abu Fazal advisory group declined to prescribe any adjustments in the
present structure of Indian Contract Act, 1872 to make them significant to the most recent
mechanical improvements. A cure was found by the Indian Parliament by actualizing a
different enactment which refreshed the present Indian laws as per the Internet upset in the
nation. The "Electronic Commerce (Harlow and Rawlings) Act, 1998" was sanctioned by the
parliament to manage issue of electronic contracts. It depended on the suggestion of the
council that the future contracts would to a great extent be founded on the web and electronic
types of correspondence and acknowledgment because of its smoothness and speed. The
Electronic Commerce Act (Davidson)included acts which were acquired from mechanically
propelled nations, for example, Singapore, Malaysia, UN State of Texas, Utah, Illinois and
Florida and changed as per needs of Indian state to manage different types of electronic
contracts. The Electronic Commerce Act was passed keeping in see all the electronic
exercises which make an agreement, and the rights and liabilities secured by it.

The Act is partitioned into fifteen sections, the principle arrangements of which are as per the
following:

Part II of the Act tends to electronic records and electronic marks. It gives that, with restricted
special cases, electronic records and marks ought to be concurred an indistinguishable
treatment from paper records and marks for reasons for agreeing to statutory written work,
signature, evidentiary and record keeping necessities. (Davidson; Hedley)Part III of Act tends
to the respectability and confirmation of secure electronic records and secure electronic
marks. Secure electronic records and marks characterize particular classifications of records
and marks that are managed more noteworthy evidentiary assumptions in light of their
upgraded unwavering quality and dependability.

The Electronic Commerce Act characterizes the fundamentals of a legitimate E-Contract as

following:

1. That there ought to be finished solid electronic record.

2. That there ought to be very secure electronic record.

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3. That there ought to be finished dependable electronic mark. On the off chance that the
archive is marked by advanced marks then it ought to be regarded to be secure
electronic signature and afterward it might be secured electronic record.

4. That there ought to be communication of electronic operators that affirm or

demonstrate.

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CHAPTER 5: COMPARATIVE STUDY

DISTINCTION BETWEEN E-CONTRACTS AND TRADITIONAL

CONTRACTS
In internet business, the significance and part of agreement did not change, but rather its type
experienced an incredible change:

(1) The agreement of the earth is extraordinary. Conventional contracts occurred in

reality, the two sides can bargain vis-à-vis counsel, and electronic contract occurred in
the virtual space, the two organizations would not in any case meet each other when
all is said in done, in the electronic robotized exchanging, or even individuals can't
decide if the exchange is moderately.

Their character to depend on secret key confirmation distinguishing proof or accreditation

body.

(2) Contracts went into different parts of the change. Offer and sense of duty regarding
the season of dispatch and receipt of the agreement than the conventional complex,
contract development and the piece of the section into drive conditions are unique.

(3) The type of the agreement has changed. Electronic contract data contained in the
information message, there is no qualification amongst firsts and duplicates can't be
utilizing conventional strategies to sign and seal.

(4) The rights and commitments of gatherings to the agreement are extraordinary. In the
electronic contract, there was not just controlled by the agreement rights and
commitments of the substance, yet additionally there is an exceptional type of the
agreement emerging from the formal rights and commitments, for example,
computerized marks lawful relationship. In the substantive rights and commitments of
lawful relations, some in customary contracts don't append incredible significance to
the rights and commitments in the electronic get that essential, for example, data
revelation commitments, insurance of protection commitments.

(5) The electronic contract execution and installment of the multifaceted nature the more
conventional contract.

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(6) Changes as electronic contract are firmly identified with contract law had a huge
effect. For example, protected innovation law, law of proof.

E-CONTRACTS IN INDIA
Contracts have turned out to be so basic in everyday life that more often than not we don't
understand that we have gone into one. Appropriate from employing an auto to purchasing
aircraft tickets on the web, incalculable things in our day by day lives are represented by
contracts. The Indian Contract Act, 1872 administers the way in which contracts are made
and executed in India. It administers the manner (Tepper) by which the arrangements in an
agreement are actualized and classifies the impact of a break of authoritative arrangements. It
gives a system of standards and controls, which oversees development, and execution of
agreement. The contracting parties themselves choose the rights and obligations of gatherings
and terms of understanding. The courtroom demonstrations to implement understanding, if
there should be an occurrence of non-execution. (Weakley)Electronic contracts (gets that are
not paper based but instead in electronic shape) are conceived out of the requirement for
speed, comfort and productivity. Envision an agreement that an Indian exporter and an
American shipper wish to go into. One alternative would be that one gathering first draws up
two duplicates of the agreement, signs them and messengers them to the next, who thus signs
the two duplicates and dispatches one duplicate back. The other alternative is that the two
gatherings meet some place and sign the agreement. In the electronic age, the entire exchange
can be finished in a moment or two, with the two gatherings essentially attaching their
advanced marks to an electronic duplicate of the agreement. There is no requirement for
postponed messengers and extra voyaging costs in such a situation. There was at first a
misgiving among the lawmaking bodies to perceive this advanced innovation, however now
numerous nations have established laws to perceive electronic contracts. The traditional law
identifying with contracts isn't adequate to address every one of the issues that emerge in
electronic contracts. To the extent India is concerned, the regular law identifying with
contracts i.e. The Indian Contract Act.1872 was very unequipped to manage the issue of
Electronic Contracts. The Information Technology Act, 2000 was instituted by the Indian
Parliament to fathom some impossible to miss issues which came in the development and
validation of Electronic Contracts.

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ELECTRONIC CONTRACT IN UNITED STATES OF AMERICA
The development of electronic trade has relatively expanded the utilization of electronic
contracts as a quicker and imaginative approach to do business. In the vicinity of 1998 and
2002 most nations adjusted their household business enactment to perceive electronic
contracts and marks as lawfully legitimate instruments. Still some less-created nations are
achieving this assignment. All things considered, in spite of the relentless extension of web
based business and the declaration of laws securing online business contracts, numerous
organizations and Internet clients don't know unequivocally what law applies to their web
based business contracts. The accompanying laws constitute the essential lawful structure of
electronic contracts in the United States. Notwithstanding these particular laws, (Samanta)
there are some global laws that may well apply to electronic contracts if the legally binding
gatherings choose to submit to them. The Uniform Electronic Transactions Act (UETA) is an
imperative U.S. enactment material to electronic contracts. UETA, as explicitly characterized
in Articles 3 and 4, just applies to exchanges identified with business, business, and
government matters; and to exchanges led by electronic means. The U.C. Electronic
Signatures in Global and National Commerce Act (E-Sign Act), 2001. The Act perceives the
legitimacy of agreements entered electronically, and where electronic marks have been fused.
The primary reason for this Act was to give on electronic contracts, an indistinguishable
specialist from its paper-based partner. Uniform Computer Information Transaction Act
(UCITA) is an important U.S. set of proposed display rules relevant to the development of
electronic contracts, particularly to those e-contracts on electronic materials, or "computer
data exchanges" as the Act calls them. UCITA has not been embraced by numerous states
and a few of the states that have received UCITA have incorporated various changes to the
first UCITA content. Along these lines, when managing permitting or exchange of computer
programming inside the United States, it is imperative to check whether UCITA"s rules have
been received by the state administrator of the current ward.

ELECTRONIC CONTRACT IN MALAYSIA

Despite the fact that internet business is developing at a critical rate, various hindrances keep
on hampering its improvement. One hindrance identifies with development of e-contract.
There remains vulnerability whether the conventional standards of agreement law can be
adjusted to the necessities of electronic contracting. (Jefferson)Therefore gatherings may
differ in the matter of what point and in which nation an e-contract is framed. This issue

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should be routed to help the trustworthiness of electronic exchanges particularly in offer of
products since the resulting rights and liabilities of the contracting gatherings will rely upon
whether an assertion has been come to between them. Verifiably, the electronic contract is
essentially not quite the same as conventional contract which trigger different new lawful
issues even at the underlying phase of the agreement. In light of Malaysian legitimate
practice and in correlation with United Nations Commission on International Trade Law
(UNCITRAL) Model Law on Electronic Commerce and additionally United Kingdom law
and European Union Directives on internet business, this paper tries to investigate and
distinguish customer issues concerning the development of e-contracts. This incorporates the
talk on the production of legitimately enforceable understanding, the suitability of the postal
run and its application to email, the need of composed contract and additionally computerized
signature and the vulnerability of where and when the e-contract is framed. The paper
likewise looks at significant Malaysian enactment on arrangement of e-contract including the
Contracts Act 1950, Sale of Goods Act 195, Electronic Commerce Act 2006 and the Digital
Signature Act 1997 and the ampleness of the current law in ensuring e-buyers.

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CHAPTER 6: CONCLUSION & SUGGESTION

It can be effectively reasoned that the Electronic type of contracting has developed as a
noteworthy type of arrangement of agreements and its esteem has expanded essentially
finished the timeframe. The Indian Legislature keeping in mind the end goal to control the
rights and liabilities of gatherings if there should be an occurrence of Electronic Contracts has
passed the IT Act, 2000 and the Electronic Commerce Act, 1998. The arrangements of these
demonstrations approve the development of electronic contracts. The offer and
acknowledgment given in type of information messages will be held substantial. Anyway the
arrangements of the demonstration are to be perused in consistency with the Indian Contract
Act, 1872 and the point and goals of the agreement ought not to be in negation to the
arrangements of the Contract Act. We have likewise observed from different legal choices
that offer and acknowledgment given in type of Emails would be held as legitimate and the
agreement along these lines framed would tie. The Electronic Contracts are an amalgamated
type of Cyber Law and Contractual law and hence it gets its power from both.

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CHAPTER 7: BIBLIOGRAPHY

The researcher has consulted following sources to complete the final draft:

Primary Sources:

 Indian Contract Act, 1872.

 Foreign Awards Act, 1961
 Arbitration and Conciliation Act 1996
 Code of Civil Procedure, 1908

Secondary Sources:

1. Singh, Avatar, Contract & Specific Relief, Tenth Edition 2008, Eastern Book
Company
2. Bangia, R.K. Contract-1 (sixth edition,2009)
3. Mulla: The Indian Contract Act, (15th Edition 2016)
4. Kumar, Arun, Mercantile Law, 2001, Atlantic Publishers & Dist
5. Pillai, R.S.N, Legal Aspect of Business, 2011, S. Chand publishing
6. Marshall, Thomas R, Public Opinion, Public Policy And Smoking, 2016, Rowman &
Littlefield

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