NAME:  GANJI SNEHA                    



In present world the situation, The computer technology quickly rised and rapid emergency of industrialization, globalization, and complexities. E-contracts are one of the by products of e-commerce. Ex: online banking, online shopping, online auctions etc. with the modern technology, the transactions can be finished in a matter of seconds by just having both the parties electronically sign an electronic copy of their con tract and this type of contract is legally valid under the Information Technology Act of 2000. However nothing in this whole Act addresses, “ The parties eligible to carry out an online contracts, according to section 11 of the Information Technology Act states that, crediting the original creator of an electronic document”. In order to determine the parties legal eligibility, we must refer the Indian Contract Act 1872. One of the major flaws in the Information Technology Act is that it leave parties uncertain about the legality of their contract. Additionally in other cases parties were ensure of whom to hold accountable in the event of an E contract violation, because they were unaware of each other person and the digital signature of the individual attached to their contract may be that of a minor or an incompetent parson. E contracts are paperless contract it is an electronic form, it is the change of technology and legal requirements lead to the contract to be in electronic form. The e contract is nothing but the way of the digital contracting.


In this present world everything is becoming digitalized to cope up with the demands of our fast faced society, the traditional pen and paper contracts have evolved now in the form of new age of e-contracts is also known as electronic contracts. Contracts have became part of our lives Ex: Buying a product from the market or having a taxi etc. we are using contracts in our daily life’s if knowingly or unknowingly became part of our day to day life. In e-contracts communication leads to an agreement made in online that creates a mutual obligation between the two parties and is enforceable under certain legal requirements i.e., drafted, negotiated and executed in online completely, rather than interacting in person or by in phone the parties communicate digitally. The rapid technology creates easy way to make contact in online between the parties. E-contracts make  things easier and increases business dealings, and also this e-contracts saves traveling expenses and saves our time. Contracts have become part of our life. Right from buying airline tickets on online, countless things we buy in our daily life’s are ruled by contracts. In an electronic e-contracts the offer, counter offer and acceptance and communication leads to an agreement. Before we study about e-contracts, everyone should know about what is an actual contract is and it’s essential elements of a valid contract.

What is a contract?

According to section 2 (h) of the Indian Contract Act of 1872, a contract is an agreement which is enforceable by law. The parties who enter into a contract they must have competency to enter into a contract. Minors, persons of unsound mind and persons disqualified from law to which they are subject to these persons are not competent to make a contract.

The essentials of a contract are:

  1. Offer and acceptance
  2. Legal relationship
  3. Consideration
  4. Capacity of parties
  5. Free consent
  6. Lawful object
  7. Possibility of performance
  8. Certainity
  9. Legal formalities.

What is an electronic contract ( e-contracts)

  According to section 2 (h) of the Indian Contract Act,1872 says that a contract is an agreement which is enforceable by law. Similarly the electronic contracts(e-contracts) are those contracts which are not paper based and are electronic in nature. These contracts are generally made for speedy entering into a contract for the convenience of the parties. A digital sign is need to enter into a contract, as a party even both the two parties of the contract are sitting far away from each other. E-Contracts are the most convenient method to make a contract without being physical contact . Hence, e-contracts are also a an agreement which is enforceable by law and that is entirely created, negotiated, and executed digitally. E-contracts are digital in contrast to traditional contracts, which are printed on paper. Even when the parties to an e-contract do not physically meet, but their meeting of minds is absolutely present. The parties communicate each other via telephone or through the internet. Unlike traditional pen and paper contracts and electronic contract is created by digital and electronic medium.

What is the validity of an e-contract

According to section 10A of the Information Technology Act, 2000 gives legislative authority to e-contracts. It says that, “ where in a formation of contract, the communication of proposals, the acceptance of proposals, revocation of proposals and acceptance, as the case may be 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 used for that purpose”. The main benefit of e-contracts are not paper-based and the persons of the e-contract can enter into a contract even if they are not in same place i.e., a person’s physical meet is not important for signing the agreement instead of the person makes digital signature, and enter into a contract. The digital signature is valid under section 2(1)(p) of the Information Technology Act of 2000.

The essential elements of an e-contract are:

E-contracts is a contract modeled, specified, executed and deployed by a software system. There are conceptually very similar to the traditional commercial contracts. The essential elements of a valid E-contract requires these essentials, they are:-

  1. There must be a proposal/offer.
  2. There must be an acceptance.
  3. Legal consideration must be there.
  4. Parties must be able to contract.
  5. Free consent by the parties.
  6. Lawful object.
  7. Acknowledgement of an offer is necessary.
  8. Possibility of performance.

Types of E-contracts are:

The E-contracts are common in today’s world, everyone using E-contracts in day to day life. Ex:- buying any product in the market and signed digitally and saves their time. An E-contract is created by combining traditional contracts with technological proficiency. There are few main important types of E-contracts are commonly used, they are:-

  1. Shrink wrap agreement.
  2. Click wrap agreement.
  3. Browse wrap agreement.
  4. Scroll wrap agreement.
  5. Sign-in wrap agreement.

Shrink wrap agreements:- shrink wrap agreement are the end user license Agreement or the shrink wrap agreement refers to the purchase agreement attached to shipped products, usually bound by shrink wrap( plastic wrapping) that contains terms and conditions like right to use, licenses, warranties.

Click wrap agreements:- Click wrap agreements are basically click based agreement which requires assent of parties by way of clicking “ I agree” or “ I accept” button. Click wrap agreements are also a form of agreement if it is used for software licensing any other electronic media and websites. The party first read the terms and conditions, private policies of that particular website and then only to enter or login in the website. Ex:- Amazon user agreement, Flipkart user agreement.

Browse wrap agreements:- Browse wrap agreements are online contracts or license agreements are generally found in a website or downloadable product. These contracts are published in a particular webpage and used have to find these terms and conditions by browsing that particular page.

Scroll wrap agreements:- The scroll wrap agreements requires the user scroll the license agreement, the user must scrolling down the terms and conditions before giving the consent or rejection.

Sign-in wrap agreements:- The sign-wrap agreement is a type of E-contract i.e., if once the end-user has signed in online services to buy a product, the acceptance is required.


There is no law particularly relating to E-contracts, there are many other acts which combines and enforce the E-contracts properly. They are:- 

Indian Contract Act 1872:

In the Indian Contract Act 1872 the essential elements are to be fulfilled then only the contract will be legally enforceable, or otherwise the contract will be breached. Same in E-contract must be fulfilled the essentials mentioned in the Act or otherwise the E-contract declared as void or unlawful according to the law.

The Information Technology Act 2000:

There is no particular law for E-contract, so according to section 10A of the Information Technology Act of 2000 gives legislative recognition to E-contracts. According to section 3 of the Information Technology Act says about the verification of E-contracts signed by both the parties.

The Indian Evidence Act 1872:

In this digital era, keeping records stored on electronic media are likewise admissible. In court evidence can be provided via computerized cameras, audio notes, video conferencing, and sophisticated camcorders the Indian Evidence Act has numerous sections including 65B, 85B, 88A, 90A and 85C all these sections deals with Electronic Evidence.

In SOCIETY DES PRODUCTS NESTLE S.A V OTHERS. The Delhi High court introduced section 65A and 65B in the Indian Evidence Act 1872 and paving the path for the admissibility of electronic based evidence in court. It was decided by in the case of MOHD.AFZAL AND VS. STATE OF DELHI held that, “ electronic records are admissible as evidence”.


E-contracts are a global necessity and issue. The adoption of the E-contract concept has led to the development of numerous sectors. Such as UPI, PayTM, Google Pay, etc. These days, digital media may be used for everything: purchasing items, selling them, reserving tickets, completing online registration forms, and much more.

Certain obligations also increase with the increased usage of digital media. To lower crime and fraud, both offline and online, there should be ongoing surveillance and timely monitoring, similar to what CCTVs do.

It Is the responsibility of the service providers to uphold their clients’ trust. It should be possibl to prevent these kinds of actions since minors can click to accept the terms and sign contracts.

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