An electronic contract is an agreement created and "signed" in electronic form -- in other words, no paper or other hard copies are used. For example, you write a contract on your computer and email it to a business associate, and the business associate emails it back with an electronic signature indicating acceptance. An e-contract can also be in the form of a "Click to Agree" contract, commonly used with downloaded software. The user clicks an "I Agree" button on a page containing the terms of the software license before the transaction can be completed.
The contracting parties must stick on to the terms of the contract and must have sufficient redressal in case of breach (violation) of the rules of the contract.
Basic issues invovled in forming the contract are:
- Intention to enter into a legal agreement
- Proposal
- Acceptance
- Communication
- Consideration
- Competence of parties
- Remedies for breach of contract
The legal issues arising out of e-contracts have not yet been dealt by in Indian courts and the existing laws such as:
IT Act 2000, Indian Penal Code 1860 and subsequent amendments, The Indian Evidence Act 1872, The Bankers Book Evidence Act 1891 and the Reserve Bank of India Act 1934, are applied to deal with issues arising in the process of an e-contract.
There are two major types of e-contracts:
CLICK WRAP and
SHRINK WRAP
A clickwrap agreement is a common type of agreement (often used in connection with software licenses). Such forms of agreement are mostly found on the Internet, as part of the installation process of many software packages, or in other circumstances where agreement is sought using electronic media.
The content and form of clickwrap agreements vary widely. Most clickwrap agreements require the end user to manifest his or her assent by clicking an "ok" or "agree" button on a dialog box or pop-up window. A user indicates rejection by clicking cancel or closing the window. Upon rejection, the user can no longer use or purchase the product or service.
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