Authored by: Sukhmandeep singh

INTRODUCTION


This article discusses the rise of e-contracts and related legal provisions during Covid -19.


CONTRACT


The term “contract” is defined as AN AGREEMENT ENFORCEABLE BY LAW IS A CONTRACT in section 2(h) of the Indian Contract Act,1872; thus, for the establishment of a contract, there must be —

  • An agreement, and
  • The agreement should be enforceable by law.


E –CONTRACTS

The use of electronic means for contract execution is becoming more frequent in India, thanks to the recent increase in e-commerce.

An electronic contract is one that is formed via the use of e-commerce and is often completed without the parties meeting in person. It refers to electronic commercial transactions that are undertaken and completed.

A contract that is “drafted” and “signed” in an electronic format is known as an electronic or digital contract. An electronic agreement can be written in the same way as a traditional hard copy agreement.

  • Examples:
  • Drawing money from Atm
  • Ordering some products from the online shopping website
  • Online auctions
  • installation of software in your laptop while accepting its terms and conditions


TYPES OF E-CONTRACTS

Users agree to a clickwrap (also known as click-accept or clickthrough) agreement by clicking a button or ticking a box that says “I agree.” The act of clicking replaces the act of signing with an electronic signature.

Businesses can reduce their risk by using clickwrap agreements, which don’t affect conversion or customer experience. Sign-up pages, checkout flows, and login pages all have clickwrap agreements.


USE OF CLICKWRAP AGREEMENT

  • Completing an online registration form
  • Installing a mobile app
  • Purchasing a cloud service
  • Connecting to a wireless network
  • Shrinkwrap agreement


A shrink wrap agreement is the plastic covering on a software box that allows a buyer to see the licence agreement before opening/purchasing the product. Unlike the clickwrap agreement, which requires users to click the “I agree” button, the shrink wrap agreement considers the user to have consented to the terms and conditions once the box is opened.

In simple terms, a shrink-wrap agreement is a boilerplate or licence agreement that comes bundled with the product and contains some terms and conditions. When a customer utilises a product, he immediately grants his consent.

  • Shrinkwrap agreements can include the following terms:
  • licenses
  • rights of use
  • fees and payments
  • warranties 
  • limitations of liability
  • browsewrap agreement


A browsing wrap agreement is a contract that is intended to bind two or more parties through the usage of a website. In the event of a browsing agreement, a regular user of a website must accept the terms and conditions of use as well as other website regulations in order to continue using the site.

Electronic commerce websites like Amazon and Paytm, for example, have a disclaimer that states that by accessing or browsing the website, the user has agreed to all of the terms and conditions.


VALIDITY OF E-CONTRACTS

The Indian Contract Act of 1872 does not directly address “electronic” contracts, although it does not prohibit them. An electronic contract, like any other type of contract, is largely controlled by the codified requirements of ICA that apply to all contracts.

  • For a valid e-contract, it must satisfy all the essentials of a valid contract
  • offer and acceptance
  • lawful consideration
  • lawful object
  • free consent
  • parties competent to contract
  • The intention of parties to create a legal relationship


“In dotted line contracts, there would be no necessity for a weaker party to bargain as to presume equal bargaining strength,” the Supreme Court said in LIC India v. Consumer Education and Research Center. In accordance with the dotted contract, he must either accept or reject the service or goods. Either he accepts the unreasonable or unjust terms or he refuses to use the service in the future.”


LAWS GOVERNING E-CONTRACTS

A contract must not be declared unenforceable only because electronic form/means were used for communication of proposals, acceptance of proposals, cancellation of proposals, or acceptances, as the case may be, according to section 10A of the Information Technology Act, 2000.

The Indian Evidence Act of 1860 accepted electronic records as documentary evidence. We can deduce from Section 4 of the IT Act and the definitions of the phrases “electronic form” and “electronic data” that electronic records are handled similarly to physical records.


SURGE OF E-CONTRACTS DURING COVID -19


The Covid -19 epidemic has resulted in a significant shift in corporate practises. Offices were allowed to continue at a reduced capacity, and this is still the case. The majority of employees work from home.

People are finding it more difficult to contract in a physical model. E-contracts were discovered to be a viable alternative.

Online businesses have witnessed tremendous growth. People chose to shop on websites such as Amazon, Flipkart, and others because they were terrified of becoming the next target of covid by visiting to crowded markets.

Through their designated internet portals, Indian courts have begun holding electronic hearings and accepting digitally signed, electronic papers. Even if COVID 19 is passed, courts are likely to use these new online methods and procedures.


Conclusion


People’s standards have risen as technology has advanced. Information travels quickly. With the advancement of software and information technology, internet businesses have risen quickly. The use of e-contracts has increased as e-commerce has grown.

It has grown dramatically, particularly under Covid-19. E-contracts and e-commerce are the way of the future since they promote productivity. It saves money and protects the general population.

As the pandemic continues with no clear indication of when things will return to normal, we should consider alternatives to physical mode contracts and begin applying electronic methods and new technology.

Although it does not specifically mention “electronic” transactions, the Indian Contract Act of 1872 does not prohibit such. Electronic contracts, like any other sort of contract, are governed in great part by the ICA’s defined standards, which apply to all contracts.