it tells about challenges occur in e-contract in commercial acts and also tells how can we survive in that when it goes wrong and it also tells complexities of commercial transactions and it explain about compliance and regulatory challenges and it shows negotiation and revision challenges and tell about security and fraud prevention challenges.
2. INTRODUCTION TO E-CONTRACT IN
COMMERCIAL ACTS
• E-contracts are agreements that are created, signed and
stored in electronically, rather than on paper.
• IT (amendment) act 2008, Section 10A.
• Purchasing and selling goods or services, banking,
education, entertainment, travel etc.
3. COMPLEXITIES OF COMMERCIAL
TRANSACTIONS.
• Commercial transactions involve multiple parties, and e-contracts
must accurately reflect the terms and conditions of these
transactions.
• Involves variety of goods or services with different delivery
timelines, quality requirement, and payment terms, all captured in
the e-contract.
• Changes to commercial transactions, such as revisions to the scope
of work or changes in the price, can be difficult to manage
electronically, especially when multiple parties are involved.
4. COMPLAINCE AND REGULATORY CHALLENGES.
• E-contracts may be subject to different legal and regulatory requirements,
which can add complexity and uncertainty to their use.
• Regulatory frameworks for e-contracts are still evolving, and business may
face uncertainty or lack of a clarity about how to comply with emerging
requirements
• In some jurisdictions, electronic signatures and records may not be
recognized as legal and binding, and businesses must ensure that e-contracts
are valid and enforceable.
• Compliance with regulatory requirements related to e-contract may require
business to invest in additional technology or personnel, which can add cost
and complexity.
5. NEGOTIATION AND REVISION CHALLENGES
• In e-contracts, negotiation may be difficult due to the lack face-to-face communication,
the absence of non-verbal cues, the time lag between messages, the possibility of
misunderstanding or misinterpretation.
• This may be create an imbalance of power between the parties and affect the validity
and enforceability of the contract.
• Revision may be challenging due to the difficulty of tracking and verifying the changes,
the risk of losing or altering the original contract, the uncertainty of the legal effect of
the changes, and the possibility of fraud or manipulation.
• This may create a rigidity and inflexibility in the contract and affect the rights and
obligations of the parties.
6. SECURITY AND FRUAD PREVENTION
CHALLENGES
• E-contracts are vulnerable to cyber threats, such as hacking or phishing, which can
compromise the security and integrity of electronic records and signatures.
• In e-contracts, security may be compromised due to the vulnerability of the electronic
medium, the possibility of hacking or cyberattacks, and the dependence on third-party
service providers or intermediaries.
• Business may need to consider the risks and benefits of using digital or blockchain based
systems for e-contracts, as these technologies may offer enhanced security and fraud
prevention capabilities but can also be costly and difficult to implement.
7. CONCLUSION
• E-contracts have become an increasingly important part of
commercial transactions, offering businesses new opportunities
for efficiency and cost savings.
• Addressing these challenges requires business to carefully
consider the risks and benefits of e-contracts, and to invest in
appropriate technology, processes, and personnel to manage
their use effectively.
