The advancement in technology has made human life very easy and it has revolutionized the manner of communication, especially within the commercial world “from the mode of transactions to the way of executing contracts and instruments like digital signatures” drafted by lawyers in Chandigarh. The increase in e-commerce and Internet users has paved a new digital world and the need for skilled Lawyers in Chandigarh arose. For instance, in India, people can buy goods and avail of services from sellers in other countries with a tap on the mobile or a click of the mouse, and a few uncertain circumstances such as the pandemic have forced people to “work from home”, “get employment from home” etc. This article analyzes the validity of E-contracts in India.
WHAT IS A CONTRACT?
The term “contract” has been defined under section 2(h) of the India Contract Act, 1872, which reads as follows “An agreement enforceable by law is a contract”. The contracts are often expressed or implied but as per section 2(j) of the Indian Contract Act,1872 a contract becomes void when it’s not enforceable by law. A valid contract as per Section 10 of the Indian Contract Act is that contract which is made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object, and which is not hereby expressly declared to be void.
WHAT IS AN E-CONTRACT?
The E-contract is analogous to the traditional contract, the sole difference is that it takes place through online mode. The contracts which are prepared by Lawyers in Chandigarh and formed through email, internet, and fax are referred to as E-Contracts. Many of us know about e-contracts, the simplest example is EULA (End-user license agreement) pops up certain terms and conditions whenever we download software or an app on a mobile or phone and requires us to click on the “I agree” button. E-contracts are an important part of E-commerce therefore, the reason is the lack of faith in online transactions people are entering into e-contracts, specifically during the lockdown.
Legal validity of E-contracts
People ask lawyers in Chandigarh about the legal validity of E-contracts, there is so much confusion such as the Jurisdiction of the court in case of any dispute arising between the parties, the evidentiary value of E-contracts, Stamping issues, etc. In simple terms, the E-contracts are paperless contracts, parties won’t meet each other. The essentials of E-Contracts are almost like that of general contracts.
WHEN DID THE CONCEPT OF E-CONTRACTS START IN INDIA?
With the invention of the World Wide web in 1990, business people around the world started providing their services through the internet, For example, Amazon, eBay, etc. Year the 1990s, through Rediff, the concept of E-commerce was introduced in India. In India, the primary E-commerce portal was generated by the Indian Railway Catering & Tourism Corporation Limited (IRCTC) company. In 1996, the model law on E-commerce was adopted by the United Nations Commission of International Trade Law (UNCITRAL). January 1997, the General Assembly of the UN suggested that the countries should conform to this model while enacting or revising their country’s laws. With the development of technology and globalization of trade, the Indian Parliament passed the Information Technology Act in 2000, to sanction E-commerce transactions in India. So with the increase in trend Lawyers in Chandigarh also started drafting and executing E Contracts.
The following are the Rules and Regulations of International Conventions and Conferences that govern E-commerce and ultimately the E-contract
- The Brussels Convention 1968 wherein the recognition and enforcement of judgments in civil and commercial cases were accomplished
- Convention On The Law Applicable to Contractual Obligations, 19 June 1980 ( the Rome Convention)
- Convention on 30th June 2005 on Choice of Court Agreements (Hague Conference)
- United Nations Convention on the Use of Electronic Communications in International Contracts (New York, 2005)
TYPES OF E-CONTRACTS MADE BY LAWYERS IN CHANDIGARH
- Shrinkwrap Agreement – This sort of contract is formed when the purchaser gives his consent to a printed agreement on software like CD-ROM by which terms and conditions of the contract are enforced upon the contracting parties and it is usually present on plastic.
- Clickwrap Agreement – These agreements just require the user to offer his consent to the terms and conditions.
- Browse wrap Agreement – This agreement is meant to be binding upon the contracting party by the use of the website. These include user policies and terms of service of internet websites such as Flipkart, Myntra, and Amazon and are within the form of a “ user agreement” or “terms of use” and “ terms of service” which are found at the bottom of the website.
VALIDITY OF E-CONTRACTS IN INDIA:
The conditions for a valid/legitimate contract enshrined in section 10 of the Indian Contract Act,1872 are a prerequisite for E-contracts to become legally enforceable. The validity of the E-Contract includes,
- Offer and Acceptance
- Consensus ad idem (meetings of mind)
- Free consent
- Consideration
- Lawful object
- Legal relationship
And also section 10A of the Information technology act, 2000 defines a valid E-Contract
The above provision is included due to the growth of commercial agreements on electronic means. Hence, all E-contracts must conform to the prerequisites of valid contracts to become legally binding contracts. The IT Act, 2000, also provides provisions for the revocation of offer and acceptance.
In Tamil Nadu Organic Pvt. Ltd. and Others Vs State Bank of India AIR 2014 Mad 103, the High Court highlighted those contractual liabilities can arise by way of electronic means. It further analyzed the validity and enforceability of such contracts.
SPECIFIC EXCLUSIONS
The IT Act, 2000 specifically excludes the below-mentioned documents from electronic transactions:
- Negotiable Instruments
- Power of Attorney
- Trust Deed
- Will
- Sale Deed with reference to immovable property of any documents relating to any interest in an immovable property
DIGITAL SIGNATURE:
According to Section 2(1)(ta) of the Information Technology Act, 2000, “ authentication of any electronic record by a subscriber. The digital signatures in E-contracts are recognized by Laws in India. The authenticity of an E-contract can be proven by digital signatures.
E-CONTRACT AS EVIDENCE:
According to the Indian Evidence Act, 1872 Such information must abide by the conditions of Section 65B of the Act, and any information stored in an electronic form is destined to be termed as a document and is therefore admissible in any Court proceeding as evidence.
REQUIREMENT OF STAMPING:
This is another issue with regard to E-contracts. Act,1899, no instrument is going to be permitted to be submitted as evidence in a court of law.
Indian Stamp Act or any other equivalent stamp legislation in existence in India at the time. However, stamping documents remains impossible for online contracts.
CONCLUSION:
There are various cases during which the Indian courts examined the validity of e-contracts. There is a lot of confusion about stamping and signatures of e-contracts due to no proper legal framework.
With the present advancement in technology, the government should take some crucial action and amend the laws.
It is difficult to find a Lawyer in Chandigarh who can draft your contracts.
You can Avish Malhotra today or visit us at www.avishmalhotra.com
