INDORE INSTITUTE OF LAW

(AFFILIATED TO D.A.V.V. & BAR COUNCIL OF INDIA)

CONTRACT LAW 1

TOPIC: Analysis of Section 10 of the Indian Contract Act into E-

Contracts.

SUBMITTED BY:

SWATI [ BBA LLB (1stsem)]

SUBMITTED TO:

ASST. PROF. JAIDEV MAHENDRA SIR

ACADEMIC SESSION

2023-2028

Enrolment Number: Roll No.:

Date of Submission:

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 CERTIFICATE

THIS IS TO CERTIFY THAT SWATI OF BBA LLB (1STSEM) HAS SUCCESSFULLY

COMPLETED THE RESEARCH WORK IN ANALYSIS OF SECTION 10 OF THE INDIAN
CONTRACT ACT IN RELATION TO E-CONTRACTS. PARTIAL FULFILMENT OF
REQUIREMENTS FOR THE KNOWLEDGE OF GIVEN BY [Link]. JAIDEV
MEHENDRA SIR PRESCRIBED BY INDORE INSTITUTE OF LAW.

THIS ASSIGNMENT IS THE RECORD OF AUTHENTIC WORK CARRIED OUT

DURING THE ACADEMIC YEAR 2023-28.

TEACHER’S SIGNATURE -----------------------------------------

DATE-------------------------

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 DECLARATION

I HEREBY DECLARE THAT THE PROJECT WORK ENTITLED “ANALYSIS OF

SECTION 10 OF THE INDIAN CONTRACT ACT IN RELATION TO E-CONTRACTS”
SUBMITTED FOR FULFILLING THE ESSENTIAL CRITERIA OF INDORE INSTITUTE
OF LAW, IS A RECORD OF AN ORIGINAL WORK DONE BY ME UNDER
THE GUIDANCE OF [Link]. JAIDEV MEHENDRA SIR IN BBA LLB 1ST SEM,
INDORE INSTITUTE OF LAW FOR THE ACADEMIC SESSION 2023-28.

NAME- SWATI

BBA LLB 1ST SEM

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 ACKNOWLEDGEMENT
I, SWATI STUDENT OF BBA LLB 1ST SEM WOULD LIKE TO EXPRESS MY SPECIAL
THANKS OF GRATITUDE TO MY PROFESSOR AND GUIDE [Link]. JAIDEV
MAHENDRA SIR WHO GAVE US THE GOLDEN OPPORTUNITY TO DO THIS
WONDERFUL ASSIGNMENT ON THE TOPICS: ANALYSIS OF SECTION 10 OF THE
INDIAN CONTRACT ACT IN RELATION TO E-CONTRACT. I AM SINCERELY
GRATEFUL TO MY TEACHER FOR GUIDING US AND PROVIDING THE RELEVANT
INFORMATION AND THUS HELPING ME TO COMPLETE THE PROJECT
SUCCESSFULLY. I WOULD ALSO LIKE TO GIVE A HEARTY THANKS TO MY
PARENTS WHO SUPPORTED ME MORALLY AS WELL AS ECONOMICALLY IN
COMPLETION OF THIS ASSIGNMENT WITHOUT ANY TYPE OF PROBLEM. I
WOULD LIKE TO APPRECIATE AND THANK ALL MY FRIENDS AND ALMA MATES
FOR HELPING ME IN EVERY POSSIBLE MANNER IN THE WAY OF COMPLETION OF
MY PROJECT. LAST BUT NOT THE LEAST I WANT TO THANK THE ALMIGHTY WHO
MADE EVERYTHING POSSIBLE.

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 TABLE OF CONTENTS
[Link] of abbreviation………………………………………………………………06
[Link] of cases………………………………………………………………………06
[Link]…………………………………………………………………………..07
[Link]………………………………………………………………………08
[Link] Review………………………………………………………………...08
[Link]………………………………………………………………………08
[Link] of E-Contract…………………………………………………………...09
[Link] of E-Contract…………………………………………………………….09
[Link] electronic contract in accordance with Indian law……………………...09
[Link] and applicability of section-10 of Indian contract act
to E-contrct…………………………………………………………….…………..10
[Link] questions relating to the implementations of section 10
Of the indian contrct act……………………………………………………………11
[Link] contract problems……………………………………………………12
[Link] of jurisdiction……………………………………………………………..14
[Link] parties………………………………………………………...……14
[Link] of signed page……………………………………………………15
[Link] error – related loss……………………………………………………15
[Link]……………………………………………………...........................15
[Link]………………………………………………………………………16
[Link]……………………………………………………………………....16

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 LIST OF ABBREVIATION
[Link] ABBREVIATION FULL FORM
1. Sec. Section
2. Acc. Accident compensation
3. Art. Article
4. c/a Complaint
5. J Judge or justice
6. Pet Petition
7. K Contract

LIST OF CASES
[Link] International FZE v. Vedanta Aluminium Ltd.
2. P.R. Transport Agency v. Union of India & others.

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 ABSTRACT
The development of technology in recent years has led to a widespread use of electronic means
to create contracts. The traditional contract law essentially governs these electronic contracts
in India. If an electronic contract satisfies the requirements for formation, it is deemed
legitimate and enforceable an agreement. However, because electronic contracts are frequently
dynamic and unique by their very nature, many of them fall short of precisely meeting the
requirements of contract law and are thus technically void. However, due to the limitations of
the current law governing contracts, these faulty contracts are frequently overlooked and
accepted as genuine contracts. These invalidated but faulty electronic contracts could have
created a number of complexities as well as some uncertain legal issues. The paper will shed
light on how modern electronic contracts frequently fail to satisfy the requirements of a valid
contract set forth by the Indian Contract Act, the inadequacy of the law in place that regulates
contracts, and the potential legal ramifications of these electronic contracts that have been
improperly validated.
KEYWORDS: contract India, void, electronic, Indian contract act.

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 INTRODUCTION
In India, electronic commerce has been a reality since the 1990s, but it has recently become
more prevalent.
The Indian economy benefits from globalization and the government's "digital India" policies.
A report reveals that from 2013 to 2017, the country's online retail business experienced a 53%
increase in compound annual growth rate (CAGR). Consumers in the nation are more attracted
to buy and sell goods online as a result of the emergence of numerous digital platforms like
Flipkart, Myntra, Amazon, OLX, etc. These transactions or business agreements are based on
contracts, which are fundamental legal documents that impose obligations on the parties that
are enforceable in court. To keep up with this technological growth, India passed the
Information Technology Act, 2000.
To give proper operation and regulation of transactions done using electronic means, this Act
must be read in concert with other current Indian legislation. In these circumstances, the
Information Technology Act and current contract law both apply to contracts created through
the use of electronic means.
The Indian Contract Act's provisions are primarily aimed at traditional contracts, and because
non-traditional transactions are so astonishingly different in character, it is not conclusive or
even practical to use this legislation as the principal legal regulatory mechanism for them. This
has caused a lot of problems and even raised doubts about the e-contracts' legality and
enforceability. This essay will examine how traditional contract law is applied to electronic
contracts and shed some light on the difficulties that e-contracts face under Indian law as it
stands.
LITERATURE REVIEW

 "Enforceability of Electronic Contracts in India: A Critical Analysis" by

Dr. S.R. Myneni
 "Electronic Contracts in India: A Legal Perspective" by Dr. R.K. Tiwari
 "E-Contracts in India: A Comprehensive Analysis" by Dr. K.V.S. Sarma
 "Enforceability of E-Contracts in India: A Comparative Analysis" by Dr. A.P. Singh

METHDOLOGY
The study was primarily dependent on secondary data employing a descriptive research design.
Extensive research was conducted to identify articles from various databases. The secondary
data collected has been obtained through various other sources, blogs, and published papers.
Relevant case laws were collected from SSC online and Indian Kanoon using a comprehensive
set of keywords.
MEANING OF E-CONTRACT
We live in a time were getting everything online, from food to shoes, stocks to exporting items
overseas, is just a click away. This has a significant impact on how we live our daily lives.

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According to the Indian Contract Act of 18721, a contract is an agreement that is enforceable
by law. However, the aforementioned definition does not entirely apply when defining the term
"e-contract," which has a wider scope than a traditional contract and can be understood as any
binding agreement between parties with a legitimate object and consideration when they
communicate electronically through methods like email, MP3 audio files, multimedia
messages, etc2. E-contracts are only understood in general terms with reference to their context
because no statute defining them has been written by the legislature.
The only difference between an e-contract and a regular paper-based contract is how the details
of the agreement are communicated. In actuality, e-contracts have a number of benefits over
conventional contracts. E-contracts can help you construct contracts much more quickly. It
facilitates automation and digitization of contracts, which helps contractual parties construct
speedier contracting processes and lowers process costs. By supplying an improved contract
administration system, it also helps organizations attain competitive advantages. The parties to
e-contracts hope to resolve a number of complexity issues, such as time and cost, that could
arise in conventional paper contracts. These contracts are increasingly recognized as a part of
our daily operations. For those seeking recently emerging business paradigms, e-contracts have
also offered newer tools and greater opportunities.
CLASSES OF E-CONTRACTS
E-contracts can typically be signed using two methods: websites and electronic mail, or "email.
When entering into a contract by email, the parties exchange emails, negotiate the parameters
of the agreement, and then sign the contract. Despite the fact that the Indian Contract Act does
not specifically address e-mail transactions, the fact that they are similar to other types of
contracts—aside from the communication method—has been taken into consideration and is
therefore covered by the Act.
This type of contract has been approved and is seen as having the same purpose and impact as
conventional paper [Link] different strategies exist for creating online contracts
through websites: Click wrap, then select wrap. When two parties enter into a "click wrap"
agreement, they agree to the terms listed on the website and click an icon that reads "I accept"
or "I agree" to show that they accept the terms. This type of e-contract typically has fixed terms,
which means that the internet user has no negotiation power and is instead subject to a take it
or leave it kind of agreement after learning about the conditions much later in the contractual
transaction4.
Similar to this, a "browse wrap" agreement has predetermined terms, so the user's direct written
assent is not necessary. At the bottom of each page of the website is a hyperlink that, when
clicked, takes visitors to the terms and conditions page. Simply using a website for browsing

1
Section 2(h), Indian Contract Act of 1872
2
E-contract – An Overview, available at: [Link]
(Visited on March 13, 2019).
3 Megha Nagpal, Analysis of the Legal Issues Involved in Electronic Contracts Under Indian Law with Reference to Business-To-Consumer

Model of E-Commerce, International Journal of Law and Legal Jurisprudence Studies, Vol.3 Issue 4, (Nov. 2016).
4
Mark A. Lemley et al., Software and Internet Law, Aspen Law and Business, 363, (3rd Edition, 2006)

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purposes or downloading software is assumed to be consent to the terms stated in a website
URL5.
A prior license agreement known as a "shrink wrap" can only be read and approved by users
after they have paid for and opened the product or software. The users of this sort of contract
do not have any negotiating power, and the terms can be accepted by opening the package or,
in the event that they are not acceptable, by returning the item6.
Forming electronic contracts in accordance with Indian law
The validity and enforceability of e-contracts in India must be deduced from a number of
statutes that must be considered collectively. But the Indian Contract Act, 1872, which applies
to conventional contracts, governs e-contracts in the main. A contract is deemed to meet all of
the requirements for a valid contract listed in Section 10 of the Indian Contract Act if it
complies with this Act's provisions, according to which it is deemed to be legally binding.
Therefore, if a contract is formed through electronic communications and all of the
aforementioned requirements for a valid contract are met, the e-contract will be considered to
be enforceable, and proper upkeep of the electronic records and communications should be
maintained as proof of the contractual agreement reached by the parties. In Trimix International
FZE v. Vedanta Aluminium Ltd. India7, the Hon'ble Supreme Court decided that contracts
whose terms and conditions are discussed and communicated through emails between the
contracting parties are legally binding even if no formal traditional contracts were created or
signed. The Information Technology Act of 2000 also gives e-contracts legal recognition.
According to Section 10A of the aforementioned Act, a contract may not be declared
unenforceable only because offers were communicated electronically, accepted electronically,
or rejected electronically, as the case may be8. The Information Technology Act also
acknowledges "digital signatures" and supports the use of these signatures 9 in the
authentication of electronic records. The Information Technology Act of 2000 specifies rules
for a number of areas of electronic records. The provision relating to attribution to the originator
is outlined in Section 11, the provision for acknowledging receipt is outlined in Section 12, and
the provision relating to the time and location of sending and receiving electronic records is
outlined in Section 13.
In accordance with Sections 65A and 65B of the Indian Evidence Act of 1872, testimony based
on the content of electronic records presented in electronic form shall be considered admissible
in court. In order to determine the court's jurisdiction over issues involving e-contracts, the
Code of Civil Procedure, 1908 must be consulted. Other laws, including the Indian Penal Code
of 1860, the Consumer Protection Act of 1986, the RBI Act of 1934, the Banker's Books
Evidence Acts of 1872 and 1891, and the Indian Copyright Act of 1957, also contain a number

5
S. P. Ambika, Legal Regulation of E-Contract in India: An Indian Perspective, Shoshana, (Nov.28, 2021, 01:00 PM),
[Link]
6
Ayushi Singh & Sukhwinder Singh, E-Contracts in India: Issues and Challenges, International Journal of Interdisciplinary Research and
Innovation, Vol.7 Issue 1, 597-602, (Jan.-Mar. 2019)
7
Trimix International FZE v. Vedanta Aluminium Ltd. India, 2010 (1) SCALE 574.
8
Section 10A, The Information Technology (Amendment) Act, 2008, No.10 of 2009, Acts of Parliament (India)
9
Harsh Arora & Raj Nandini, India: Understanding E-Contracts, MONDAQ, (Dec.4, 2021, 05:00 PM)
[Link] commercial-law/993976/understanding-e-contracts.

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of governing clauses for the compliance and oversight of contractual terms negotiated using
electronic means.
ENFORCEABILITY AND APPLICABILITY OF SECTION 10 OF THE INDIAN
CONTRACT ACT TO E-CONTRACT
All agreements are considered to be contracts if they are made with the free assent of parties
who are legally able to do so, for a legal consideration, and for a legal purpose, and they are
not hereby expressly declared to be void. Nothing in this clause shall affect any law in India
that is now in existence and not expressly repealed, which mandates that contracts be executed
in writing or in the presence of witnesses, or any law governing the registration of documents10.
A contract must meet certain requirements, which are listed in the aforementioned Section 10
of the Indian Contract Act. If these requirements are not met, the contract may be void or
voidable based on the facts and circumstances. The fundamental components for creating
legally binding contracts are likewise made applicable for electronic contracts, just like they
are for conventional contracts.
First and foremost, there must be a legitimate offer made by one party and an acceptance of
that offer by another party. So, a client can make an offer to buy while browsing through
websites that host goods and services by choosing the alternatives provided by the seller in
order to carry out an electronic contractual transaction through an online shopping website.
The acceptance process typically involves sending emails or completing online forums on a
website11.
Other requirements include the desire to establish a legal relationship, which occurs when both
parties are aware that, should one of them break their promise, the other will be held
responsible; a lawful consideration and object, which occurs when both the consideration and
the object are not illegal, dishonest, harm someone else's property, morally repugnant in the
eyes of the law, or contrary to public policy; and a lawful consideration and object. Competent
parties are those who are entering into a contract and who are of sound mind, of legal age, and
who are not barred from doing so by any laws to which they are subject. When a contract is
not created by coercion, undue influence, fraud, deception, or mistake; when it is not ruled
void; when there is certainty and probability of performance. The same rules apply for both
traditional and computerized transactions. By carefully examining the terms related to the
electronic platforms, it is possible to ensure the accuracy of the key components in a contract
created through electronic means.
It's reasonable to claim that the current contract law in India and the application of the necessary
components to e-contracts have been deemed sufficient for their enforceability and efficient
functioning. However, click wrap, shrink wrap, and browse wrap agreements have frequently
been called into doubt in a number of foreign courts12. Due to a lack of precedent that can serve
as a guideline for the legality of these contracts at this time, the Indian judiciary has yet to
address the issue of enforceability.

10
Section 10, The Indian Contract Act, 1872, No.9, Imperial Legislative Council, (1872).
11
S. Z. Amani, E-Contract in Cyberspace: Does It Really Warrant the Acceptance of ‘Entores’ Case? India
Quarterly, Vol. 63, No. 4, 2007, 1–13. JSTOR, (Dec.4, 2021, 05:00 PM), [Link]/stable/45073187
12
2 Dale Clapperton & Stephen Coronas, Unfair Terms in 'Clickwrap' and other Electronic Contracts. Australian
Business Law Review, 152-180, Vol. 35 Issue 3, (June 2007).

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The Information Technology Act of 2000, as was previously noted, stipulates a number of
procedural requirements for the protection of computer data and the authentication of
documents using digital signatures for all types of electronic transactions. A significant portion
of the population still has reservations about entering into e-contracts, despite the fact that they
have been given legal validation and adhere to the principles outlined in the Indian Contract
Act. This is because there are no clear legal precedents establishing a clear mechanism for their
enforceability in India.
ECONTRACTUAL QUESTIONS RELATING TO THE IMPLEMENTATION OF
SECTION 10 OF THE INDIAN CONTRACT ACT
Issue of intent to establish a legal relationship: The parties must have a clear desire to create a
binding agreement with legal repercussions and duties in order for a contract to be considered
genuine. However, e-contracts are frequently lengthy—often numbering in the thousands of
words—and written without much respect for the rules of ordinary English grammar or the
ability of a lay readership to make sense of them.
Due to the low number of customers who actually read their contracts before completing a
transaction and the difficulty in understanding the terms used in these contracts, as well as the
general gullibility of consumers, online vendors frequently take advantage of this Internet
standard-form of contracts. As a result, this type of behaviour frequently leads to contractual
terms that are skewed in Favor of the vendors13 and many users are unaware of the binding
nature, legal obligations, unfair transaction costs, and default clauses in their contracts,
unintentionally exposing themselves to the legal repercussions of their own actions14. These
factors make it possible that parties to online contracts are sometimes unaware of or do not
intend to establish the legal relationships required by the law.
Obtaining free consent: The widespread, large-scale practice of settling e-contracts in
standardized form that is currently in use has resulted in a setback. Another name for a
standardized contract is a standard-form contract. A standard-form contract typically has
specified terms and specific stipulations. These contracts are typically used for business
transactions or employer-employee agreements with minor additions or alterations to fit the
particular situation. These pre-written contracts typically Favor the side who drafts them and
provide the other party no leverage. Due to the fact that the contracting parties' limited ability
to negotiate their terms, this style of contracting amounts to adhesion contracts. The refusal of
such predetermined contractual terms prevents access to the goods or services for those who
are subject to such exemption clauses or standard form contracts. This is a unique opportunity
for the large corporation to impose terms on the person, which could even free the company
from any contractual liability, in order to take advantage of his vulnerability.
In accordance with Section 16 of the Indian Contract Act, a contract is deemed to have been
induced by "undue influence" where the relationships between the parties are such that one
party has the ability to control the other's will and takes advantage of that power to gain an
unfair benefit. In such helpless circumstances, the vulnerable parties frequently must accept

13
Robert A. Hillman, Consumer Internet Standard Form Contracts in India: A Proposal, Vol. 29 (1) National Law
School of India Review (2017), (Nov.28, 2021, 09:00 PM), SSRN: [Link]
14
Tabrez Ahmad, Limits of Consent in Electronic Contract Law & Cyberport, December 2012, (Dec.3, 2021,
09:00 PM), SSRN: [Link]

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unfair terms in order to get the products and services, which might be viewed as an exercise of
undue influence by the contract drafters15, leading to the establishment of contracts without
receiving free consent in the truest sense.
Issue of Competent Parties: Many business transactions involving electronic contracts take
place between complete strangers. Both of the contracting parties are threatened by this.
According to the Indian Contract Act, the parties to a contract must not be minors, insane, or
otherwise barred by the law in order for it to be deemed legal. However, with click-wrap or
browse-wrap agreements, children can readily enter into contracts. According to the Indian
Contract Act, website owners are responsible for ensuring that the parties to any contracts are
competent.
Many websites have implemented various ways of verification, such as signing up, in which
users provide their personal information, including their date of birth to demonstrate that they
are legally capable of entering into a transaction. Users are required to identify specific items
in order to prove their insanity throughout this competency verification process, which
occasionally uses a conversation box with graphics. However, a survey by the Internet and
Mobile Association of India (IAMAI) in partnership with Nielsen Holdings found that there
were 451 million active Internet users as of the end of the fiscal year 2019, 66 million of whom
were children aged five to eleven.
This suggests that a sizable portion of India's Internet demographic consists of
schoolchildren16. According to this survey, many electronic contracts are established with
juveniles who are legally incapable of signing them, most frequently through social networking
and online shopping websites. Additionally, there have been several reports from parents of
children who used credit cards to make in-app purchases without their permission, indicating
the presence of minors in the digital world and the validity of e-contracts established by these
unqualified parties. A prevalent practice of fraud and identity deception when entering into
contracts is the absence of any law provision requiring effective identity verification and
systems for establishing the identities of contracting parties17.
Issue with legitimate objects: Due to the fact that many websites are not closely and strictly
regulated, many of the conditions in e-contracts are often immoral and against public laws.
Additionally, it appears that minors can readily get alcohol, tobacco, and other things that are
illegal for their age group via the Internet because so many online merchants have lax or non-
existent age verification policies, 18making it simple for them to get around age verification
laws. A petition challenging Rule 66(6) of the Delhi Excise (Amendment) Rules of 2021, which
permits buying alcohol via mobile app and home delivery of alcohol even in public places, has
just been filed at the Delhi High Court in response to this issue. They have contested this new

15
Megha Nagpal, Analysis of Legal Issues Involved in Electronic Contracts under Indian Law with Reference to
Business-to-Consumer Model of E-Commerce, International Journal of Law and Legal Jurisprudence Studies,
Vol.3 Issue 4, (Nov. 2016).
16
India Internet 2019 Report, Internet and Mobile Association of India, (Dec.1, 2021, 04:00 PM),
[Link]
17
Abhijit Bhaskar, Why Instagram and social media needs stronger measures for age verification, Live Mint, 5
the. 2019, (Dec.1, 2021, 04:00 PM), [Link]
[Link].
18
Kurt M Rabis et al., Internet sales of cigarettes to minors, JAMA. 2003;290(10):1356-1359.
doi:10.1001/jama.290.10.1356.

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regulation because there is no official process for age surveillance, which can result in the
distribution of alcohol to minors in public locations. The Court hasn't reached a decision on
this petition yet, though19.
ELECTRONICAL CONTRACT PROBLEMS
Virtual world theory has affected the economies of several nations, including India. Easy access
to the internet, fax machines, computer software, and smart phones has served as the lifeblood
of our nation's e-commerce economy. It now has a legal framework and control thanks to the
Information Technology Act of 2000. However, as nothing in this world is flawless, this law
also has certain drawbacks with regard to the e-contracts controversy that is currently roiling
the nation. In our nation, electronic contracts encounter the following challenges:
ISSUE OF JURISDICTION:
When an e-contract is breached, it might be challenging to define the jurisdiction, or the scope
of the court's authority, when transnational transactions like e-contracts20 are involved.
According to Section 13(3) of the Information Technology Act of 2000, the originator's place
of business shall be deemed to be the location where the information was transmitted, and the
addressee's place of business will be presumed to be the location where the information was
received.
This suggests that the location of the computer sources via which data was sent and received
plays no part in establishing the proper venue for the lawsuit. This section does, however,
provide constraints on the authority granted by Section 20 of the 1908 Code of Civil Procedure.
The suit may be filed in the court whose local jurisdiction the cause of action has arisen, as
stated in Section 20 "clause c." Due to the fact that an e-contract may give rise to a cause of
action anywhere, regardless of the parties' principal place of business 21, it calls into question
the jurisdiction of the courts.
“In the case of P.R. Transport Agency v. Union of India & others22, the Allahabad Court
addressed the issue of jurisdiction and determined that because the petitioner's primary place
of business was in Banaras, Uttar Pradesh, and the contract's acceptance was sent via email and
received there, Chand Auli, Uttar Pradesh, has jurisdiction over the case at hand.”
“It has become challenging to resolve the jurisdictional question because electronic
transactions are devoid of borders, especially when the parties are from different parts of the
world. The laws now in place governing e-contracts are unable to address issues such as which
country would have jurisdiction in the event of a disagreement, which party would apply the
law to resolve the dispute (suppliers or customers), or how a decision would be enforced in
both nations23.”

19
How to ensure liquor not given to underage persons in home delivery: HC to Delhi Government, TOI, 27th
October, 2021, at pg. no. 5.
20Allthat you must know about E-Contracts, available at: [Link]
contracts/, (Visited at March 17, 2019)
21 Legal regulation of E-contract in India, available at:

[Link] (Visited on March 17,2019).

22 2005 SCC Online All 880
23 Legal regulation of E-contract in India, available at:

[Link] (Visited on March 17,2019).

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 CONTRACTING PARTIES:
Transactions in an electronic contract are made between unrelated parties. Both of the
contracting parties are threatened by this24. According to Section 11 of the Indian Contract Act
of 187225, in order for a contract to be legitimate, both parties must be of legal age and must
not be insane or otherwise barred from contracting. However, while executing an electronic
contract, the main issue that comes up is the parties' qualifications. Minors can simply enter
into contracts using the website's clickwrap or browse wrap features.
Therefore, the websites are responsible for ensuring that the party entering into the contract is
qualified under the Indian Contract Act of 1872. Online websites have developed a number of
methods to verify a party's competency, such as signing up for the site and providing personal
information, including a person's birth date, to prove to the website that the party is competent
to enter into a contract. Users are asked to identify objects in photographs in a dialogue box
that may be included with it in order to ensure the party's lunacy. Despite these strategies, the
enforceability of e-contracts is in doubt because there isn't any law to address this issue in
depth26.
IDENTIFICATION OF A SIGNED PAGE:
The Indian Contract Act of 1872 does not require that a valid contract be signed by both parties
in order for it to be enforceable; instead, it recognizes both oral and written contracts. The
signature in conventional contracts denotes the parties' intent to form the contract and has
greater legal weight in the eyes of the law. However, under other laws, such as the Indian
Copyright Act of 1957, etc., the contract must be signed by both parties. Because an electronic
contract formed by electronic means cannot be signed by the parties in the usual manner, it
must be signed electronically using an electronic signature or digital signature as described in
Section 3-A27 or Section 528.
But its biggest flaw is that not all documents accept e-signature authentication. documents such
as: Negotiable instruments, except checks Powers of attorney, trust deed, real estate
documents, and so forth.
The Information Technology Act of 2000 does not apply to these documents since they must
be physically signed by the parties29.
TECHNICAL ERROR-RELATED LOSS
E-contracts are legal agreements that are made between parties by electronic means and kept
on a computer network. The information that is kept in the world, however, is not secure, much

24 Legal validity of e-contracts: a study with special reference to consumer contracts in online shopping, available at:
[Link] (Visited on March 17,2019).
25 E-Commerce in India, available at: [Link]

Commerce_in_Indai.pdf, (Visited on march 17,2019)

26
Legal validity of e-contracts: a study with special reference to consumer contracts in online shopping,
available at: [Link] (Visited on
March 17,2019).
27
Information Technology Act of 2000 (added with 2008 amendment act)
28
Information Technology Act of 2000
29
All that you must know about E-Contracts, available at: [Link]
about-e-contracts/, (Visited at March 17, 2019)

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like traditional paper transactions. There are no administrative, legal, or judicial rules for the
situation where all or part of the information is lost due to a technological failure, even though
it is widely thought that anything that enters the digital world always exists and is never lost30.
CONCLUSION
The numerous transactions and paperwork we must complete in our everyday lives are
undoubtedly made simpler by e-contracts. Although proactive measures have been taken to
bring the legal framework in step with the constantly advancing technology and transactions
made through contracts, it is safe to say that the legal framework regarding e-contracts in India
is still in the early stages of development. This is because the nature and scope of e-contracts
are much broader than those of traditional contracts. A number of problems, including the
enforceability of many e-contracts themselves, may arise from governing contracts of diverse
natures under the same legislation.
Suggestions
In terms of their evidential costs, it can be said that electronic contracts are nearly equivalent
to various hard copy contracts, and in the event of any discrepancies, specific clauses are there
to fill in the gaps. All digital contracts are valid agreements because the Information
Technology Act has made them legal, and anyone who violates the terms and conditions of a
contract may be held liable. Many changes have ultimately been done to improve conceptual
readability.
REFERENCEES
1.[Link]
2.[Link]
2006/amp.
3.[Link]
punjab-211116/

30
Information technology act, 2000 — a contractual perspective, available at:
[Link] (Visited on March 17, 2019)

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