Shubham Kumar Dubey
Indore Institute of Law
Introduction:
The world is growing rapidly and so that technology. With the advancement of technology, the relation between technology and law is quite interesting today. In this modern world, everyone in a hurry that they all want a convenient method for making a contract or other legal works. Nowadays, electronic means of a contract are in full swing and people are accepting the mode of making e-contract through electronic means.
There are many ways like Gmail, WhatsApp, Text Messages etc. by which contracts can be made and as the technology grows the method for a contract it is changing day by day which is more convenient to people. The fastest-growing technology is making these methods of contracts a way easier and convenient for people.
As there are various agreements and contract which are made through electronic means via Gmail and the agreement is being accepted by mail itself, turns into a binding contract. In IT Act 2000, sec 10(A) states that the contract through electronic means shows the relation between technology and law but validity and enforceability of the contract is still the main concern of law.
Definition:
The e-contract is a virtually defining contract designed, defined and implemented. Narratively, electronic contracts are somewhat the same as conventional trade contracts. Sellers introduce to prospective buyers their goods, costs and terms of use. Purchasers weigh their options, discuss rates and terms, position purchases and make purchases where the product is up to the mark. The supplier then gives the product which is ordered.
Validity Of Electronic-Agreement As Per Indian Contract Act ,1872
As the section 10 of ICA, 1872 it says which contracts are agreement- “All agreements are contracts if they are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void’’[i]
So here if we elaborate it clearly says and the basis principle laid down by contract act that when both the parties have free consent and also has lawful consideration which makes the contract valid.The intent of the parties is relevant.
Generally we see in phones that there are ceratain terms and condition that is given in phones if a person ticks I Agree then the person shall be liable to honour the obligation under the contract.
IT Act 2000 – Validity of Contract through Electronic Means
An electronic contract is legitimate and enforceable under the rules of the Information Technology Act, 2000. As stated in Contract Act, 1872, essentials to contract act is fulfilled then only contract is valid and enforceable and in contract act no where it is written that the contract through electronic means is invalid. Also Indian evidence act 1872 also enumerates that the contract through electronic means are binding.
Section 10-A of Information Technology, 2000, awards electronic contracts legal status.
“Section 10-A: Validity of contracts formed through electronic means. -Where in a contract formation, the communication of proposals, the acceptance of proposals, the revocation of proposals and acceptances, as the case may be, are expressed in electronic form or by means of an electronic record, such contract shall not be deemed to be unenforceable solely on the ground that such electronic form or means was used for that purpose.”[ii]
This clause is laid down in the Information Act after increased reliance on digital methods for concluding trade contracts. It applies when the communication,offer,acceptance is made through electronic means.
How E-Contracts Can Be Entered Into: Contracts made through electronic means like mail, fax, Whatsapp etc. The core elements for establishing the electronic contract are before the-requirements laid down in the Indian Contract Act,1872. [1]
Offer and Acceptance: When the offer is made through online made and the acceptance is also through online.
Lawful Purpose and Consideration: Contract is applicable when it is lawful and the consideration is on something. It is not fraudulent in nature and there is proper consideration between the parties.
Capacity of Parties and Free Consent: When the parties are competent to contract and their consent is free then they are capable of entering in a contract.
Because the concept of executing an E-Contract is daunting, many people often worry about its validity, particularly as a comparison to older binding contracts. Its plain fact is that the Indian Contract Act of 1872 did not explicitly set out any clear method of communicating proposals and which constitute approval.
Evidentiary Value of Electronic Records:
Defined in section 65-A of the Indian Proof Act, 1872, courts in India recognize online documents. Its system for furnishing digital records and documents is defined under Section 65-B of the Indian Evidence Act, 1872.
Anything contained in a digital record produced by a computer in written, stored or copying type should be deemed a report in compliance with Section 65-B of the Indian Evidence Act, 1872 which could be applicable to the case without any other clear facts in any courtroom. The applicability with the same must, therefore, become pursuant to a various conditions specified under section 65-B of that act. The report required to be created from a device must be regularly used with an individual with both the legal authority of the system at the time of its creation; the document must have been downloaded or received even during normal course of activity; this data should be sent regularly to a device;
Electronic Signatures:
The Information Technology (Amendment) Act of 2008 replaced the word ‘digital signature’ with the phrase ‘e-signature.’ A e-signature is the particular technology and is irrevocably exclusive both to the signer and the paper. A digital document, though, is of an impartial and specific type of technology. But there is no electronic signature standard. This could either be a typed name or a hand-written signatures digitized photograph.
Conclusion:
In a balanced interpretation of national and international rules, it may be assumed that e-documents are legitimate and enforceable in court. But, as the danger involved with e-signatures is large, the parties often rely on wet signs on actual documents for large-stakeholder transactions. For fintech companies that have used the e-mode of authentication and implementation activities to prevent theft or fraud, e-signatures may be used as an additional layer of protection, e.g. by verifying the digital signature by sending an SMS to the registered phone number or by using the geo-position to collect the IP address or some other tool to monitor the specifics of the phone number.
Electronic computer with e-signature are attached. Such double-tier authentication processes shall also guarantee the signatory’s validity. As we know e-contracts has their own advantages and disadvantages. On one side it reduce time, cost, reduce paper work, fasten in contract and the parties response but on the other side there are many disadvantage such as online fraud. As the proposal is based in electronic contracts not on people making decisions about individual transactions, but on how risk can be managed in an analytical manner. Thus the goal is to create resumes for assigning a text to a party in order to prevent some contract cheating and inconsistency. E-contracts are ideally designed to promote the re-engineering of corporate systems that exist in multiple organizations requiring a combination of technology, procedures, and market techniques that assist in the instant knowledge sharing.
REFERENCES:
[i] Section 10,The Indian Contract Act,1872
[ii] Section 10 A, The Information Technology, 2000(IT Act)
