Introduction
An e-contract is a contract created and signed electronically. E- contract are contract formed online. It is done through the interaction of two or more individuals using electronic means, eg: email etc. Contracts now have become part and parcel of everyone’s lives. Be it shopping online on various sites, apps or hiring cabs, we all are entering into contracts knowingly or unknowingly. Section 10 of the IT Act, 2008 gives legislative authority to E contracts. For every agreement signature is important, in case of E contract an electronic signature comes into play. Though two parties are in two different places, through digital signature they can always make contract being in any part of the world. It is the easiest and simplest way to enter into contract without being physically exhausted. Nature or the best part of e-contracting is that there is no physical boundaries, no writing, lack of security, there is no handwritten signature, seals, thumb, impression and also there is no single authority over internet who can decide.
Essentials
Offer should be made, in many contract it so happens that the offer is not made directly.The consumers sees the available goods and services that they are looking for and then chooses whatever is preferable to them. The offer is made by the consumers when the goods or products they choose goes to the basket or shopping cart for payment. This offer by the website is merely an invitation to offer.
The offer should be acknowledged, the acceptance is usually made after the offer had been made by the purchaser in relation to the invitation to offer. An offer is revocable at any time until the acceptance is made.
Legal consideration is must, any contract to be enforceable both the parties should give and receive something in return. It must and should have legal consideration.
The parties must be able to contract and Intention is also very important. If there will be no intention to enter into contract then there would be no contract.
Consent of the parties to enter into contract must be free. Consent should not be obtained by misrepresentation, fraud etc. There should be the complete will of the person that they wanted this contract.
The most important thing is the object or matter on which we have contracted should be lawful. eg: If we made contract for selling drugs then this wont be considered as lawful.
Legal framework
As the importance and value of e-contract across the world is increasing many legal outlines are also been made relating to it. In India, there are no certain or definite guidelines or legislations which helps the buyers and sellers in protection of services done by electronic means. However, there are certain laws made which try to regulate the business transaction of E-contract:
Indian Contract Act 1872 , Consumer Protection Act 1986, Information technology Act 2000, Indian copyright Act,1957.
Types
There are many types of e contract, few of them are:
“Shrink wrap agreement” refers to the purchase agreements that are attached to shipped products, usually bound by plastic wrapping i.e shrink wrap that contains terms and conditions. This include licenses, forum clauses, warranties, fees and payments limitation of liability.
‘Source Code Escrow Agreement” is an agreement which is between the software owner, the party receiving the license and the escrow agent. Its for the deposit of the source code of a software with a third party escrow agent. It is released to the licensee if the licensor files for bankruptcy or otherwise fails to maintain and update the software as promised in the software license agreement.
“Software development and license Agreements” also known as End-User License Agreement. Its a legal contract between author or the manufacturer and the end user of an application. It sees how the software can and cannot be used. And also checks the restrictions that the manufacturer imposes.
Conclusion
With the increase in number of internet users, e-contract has organised to grow further. though there may be certain demerits of e-contracting, E-contract has been positive enough to human life and has become a day to day part of living. It is so time saving for people and at the same time is an attractive option for physically challenged, thus increasing automation. It aims to check frauds, build confidence in genuine online transaction. It keeps pace with the fast advancement of technology. We can say that E-contract has brought change in our country. Our country is moving towards a digital era. E-contracting simply means a digital interaction.
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