An e-contract is a contract made online between two or more parties. These contracts are formed through emails or online agreements. E-contracts are part of e-commerce, where businesses sell goods or services online. In traditional business, contracts are made face-to-face. But in e-commerce, contracts happen over the internet. This helps businesses reach customers directly, without needing middlemen. Advocate Shirish, a legal expert in e-commerce law, emphasizes that e-contracts offer flexibility and efficiency while ensuring legal protection for both parties. These contracts are governed by the Indian Contract Act, the Information Technology Act of 2000, and the Evidence Act.
Types of E-Contracts
There are four types of e-contracts. Three—digitally signed, click-wrap, and browse-wrap—are digital. Shrink-wrap agreements are printed on paper.
Shrink-Wrap Agreements
Shrink-wrap agreements are contracts that come with products. You accept the terms when you open or use the product. These contracts seal the product to prevent tampering. If you return the product unopened, you can get a refund.
Click-Wrap Agreements
Click-wrap agreements happen when you click “I Accept” after reading the terms on a website. This type is common online. You cannot move forward without accepting the terms.
Browse-Wrap Agreements
Browse-wrap agreements happen when you use a website and agree to the terms. You don’t need to click anything—just using the site means you accept the terms.
Digitally Signed Agreements
Digitally signed agreements use electronic signatures. These signatures link the signer to the document and make sure the document has not been changed.
Enforceability of E-Contracts
With the growth of e-commerce and online shopping, new laws protect users from fraud and other issues. In e-contracts, the parties are often strangers. This increases the risk for both sides. The Indian Contract Act of 1872 requires the parties to be legally able to make a contract. This means they cannot be minors or mentally unfit. But minors can still enter e-contracts through click-wrap or browse-wrap agreements. This means websites must ensure users can legally sign contracts. Many sites ask for personal details to check this.
The Information Technology Act of 2000 made e-contracts legal. If an e-contract meets all the requirements of the Indian Contract Act, it can be enforced in court. The Supreme Court has also ruled that contracts made through email, even without signatures, are valid.
Conclusion
E-commerce is growing fast in India, thanks to digital technology. E-contracts are becoming more common and replacing traditional contracts. While Indian courts recognize e-contracts, there are still no clear rules for them.