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TOPIC:-ELECTRONIC CONTRACTS AND
LEGAL EFFECTS OF ELECTRONIC
CONTRACTS
WHAT ARE E-CONTRACT
• Not paper based contract
• An agreement in written form
• Through a software framework
• Born out of the need for speed, ease and
efficiency.
PARTIES TO E-CONTRACT
ORIGINATOR
• Section -2(b) of IT Act,2008
• Sends ,generate and
transmit any electronic
message
Addresse
• Section:-2(za) of IT Act,2008
• Intended by the originator
to receive the message
ESSENTILAS OF AN ELECTRONIC CONTRACT
• Offer
• Acceptance
• Intention to create legal relationship
• Lawful consideration
• Lawful object
• Free consent of both the parties
• Lawful agreement
• Competency of parties
• Certainty and possibility of legal performance
VARIOUS FORMS OF E-CONTRACT IN
INDIA
• Exchange of an E-Mail
• Browse wrap agreement
• Shrink wrap agreement
• Click wrap agreement
Validity and enforceability of E-
Contracts
• INDIAN CONTRACT ACT,1872
Essentials of a valid contract
free
consent
lawful
object
Lawful
consideration
Competent
Parties
Lawful
Agreement
Validity and enforceability of E-
Contracts
• INDIAN EVIDENCE ACT,1872
Section:-65-A (Electronic Document)
Section:-65-B (Procedure for furnishing electronic document)
• THE INFORMATION TECHNOLOGY ACT,2000
Section:-3
Section:4
Section:10(A)
ELECTRONIC SIGNATURE
• Definition:-section:-2(p) of IT Act
• Legal Recognition of Digital signature:-
Section:-5 of IT Act.
• Section:-85 of Indian Contract Act,1872
Legal issues involved in the contract
Jurisdiction
Issue of
consent
Capacity to
contract
Stamping of
contract
Acts by computer
programs
Probability of loss of
data
Meeting of minds of
parties
Place of formation of an E-Contract and
the area of jurisdiction in case of Breach
• Section:-13(3) of IT Act-Dispatchment of
electronic record:-place of business
• Formation:-in any city/state
• Breach of contract:-
choose one place of their choice
CPC:-provide two possible place for claim
Admissibility of Electronic contracts
as evidence in Courts
Case laws
Casio India Co.
Ltd.
vs.
Ashita Tele
Services Pvt.
Ltd.,
Societe Des
Products Nestle
S.A and Anr
Vs
Essar
Industries and
Ors
State of Delhi
Vs
Mohd. Afzal
and Others
State of Punjab
and Ors.
Vs.
Amritsar
Beverages Ltd.
and Ors
Suggestion
• Terms and conditions should not be generic
• Efforts to prevent unautorized transations
• Loophols in IT ACT,2000
• Need of strong and pervasive law at
international level
Product of revolutionary change
But governing laws are vague
E contracts and validity of e contracts in India

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E contracts and validity of e contracts in India

  • 1. TOPIC:-ELECTRONIC CONTRACTS AND LEGAL EFFECTS OF ELECTRONIC CONTRACTS
  • 2. WHAT ARE E-CONTRACT • Not paper based contract • An agreement in written form • Through a software framework • Born out of the need for speed, ease and efficiency.
  • 3. PARTIES TO E-CONTRACT ORIGINATOR • Section -2(b) of IT Act,2008 • Sends ,generate and transmit any electronic message Addresse • Section:-2(za) of IT Act,2008 • Intended by the originator to receive the message
  • 4. ESSENTILAS OF AN ELECTRONIC CONTRACT • Offer • Acceptance • Intention to create legal relationship • Lawful consideration • Lawful object • Free consent of both the parties • Lawful agreement • Competency of parties • Certainty and possibility of legal performance
  • 5. VARIOUS FORMS OF E-CONTRACT IN INDIA • Exchange of an E-Mail • Browse wrap agreement • Shrink wrap agreement • Click wrap agreement
  • 6. Validity and enforceability of E- Contracts • INDIAN CONTRACT ACT,1872 Essentials of a valid contract free consent lawful object Lawful consideration Competent Parties Lawful Agreement
  • 7. Validity and enforceability of E- Contracts • INDIAN EVIDENCE ACT,1872 Section:-65-A (Electronic Document) Section:-65-B (Procedure for furnishing electronic document) • THE INFORMATION TECHNOLOGY ACT,2000 Section:-3 Section:4 Section:10(A)
  • 8. ELECTRONIC SIGNATURE • Definition:-section:-2(p) of IT Act • Legal Recognition of Digital signature:- Section:-5 of IT Act. • Section:-85 of Indian Contract Act,1872
  • 9. Legal issues involved in the contract Jurisdiction Issue of consent Capacity to contract Stamping of contract Acts by computer programs Probability of loss of data Meeting of minds of parties
  • 10. Place of formation of an E-Contract and the area of jurisdiction in case of Breach • Section:-13(3) of IT Act-Dispatchment of electronic record:-place of business • Formation:-in any city/state • Breach of contract:- choose one place of their choice CPC:-provide two possible place for claim
  • 11. Admissibility of Electronic contracts as evidence in Courts Case laws Casio India Co. Ltd. vs. Ashita Tele Services Pvt. Ltd., Societe Des Products Nestle S.A and Anr Vs Essar Industries and Ors State of Delhi Vs Mohd. Afzal and Others State of Punjab and Ors. Vs. Amritsar Beverages Ltd. and Ors
  • 12. Suggestion • Terms and conditions should not be generic • Efforts to prevent unautorized transations • Loophols in IT ACT,2000 • Need of strong and pervasive law at international level
  • 13. Product of revolutionary change But governing laws are vague