Introduction
The key legislations which determine the validity of an e-contract are The Indian Contract Act, The Information Technology Act, and The Indian Evidence Act. E contracts are formed by way of exchange of Emails and through online agreements like click wrap, shrink wrap and browse wrap agreements. All these mentioned are valid under the Indian law and are in accordance with a valid contract.
Definition
An e-contract is a type of electronic contract which is made by two or more individuals who have entered into a contract, this type of contract does not involve the use of paper and is made with the help of an electronic agent such as a computer program. Electronic Contract takes place through e-commerce, often without the parties meeting each other.
Types of Electronic Contracts
- Click-wrap Agreements
In the click-wrap agreements, a party after going through the terms and conditions of the website has to, normally, indicate his/her approval to the same, by the way of clicking on an ‘I Agree’ icon or decline the same by clicking on the ‘I Disagree’ icon. The acceptance is done before the merchandise is received. These types of contracts are used on the internet, either it be the permission to access a website or downloading of any software or also selling something through a website. This is called the creation of contracts by conduct.
By clicking on any of these choices, the individual accepts or declines the terms. If the individual does not agree, the process is terminated. Click-wrap agreements are as follows:
- Type and Click:
In this case, the user must type ‘I accept’ or other specified words in an on-screen box and then click a ‘Submit’ button. This shows the acceptance or agreement of the terms of contract.
2. Icon Clicking:
In this case, the user must click on an icon of ‘I agree’ button on a dialog box. A user may signify rejection by clicking ‘Cancel’ or closing the window.
- Shrink-wrap Agreements
Shrink wrap contracts are licensing agreements for software purchases. Shrink Wrap agreement is defined as a legal agreement that is packaged within the product. In this type of agreement, the products are sealed in shrink wrap (plastic wrap) indicating that the purchaser can view the goods.
- Browse-wrap/Web-wrap Contracts
Browsing wrap agreement can be called as an agreement which is binding on two or more parties through the use of the website. The internet users will find the terms and conditions on the web page that purport to sell the goods and services. According to these terms and conditions, using the site for buying the particular goods or services itself constitutes acceptance of the conditions therein. An agreement is considered as a Browse-wrap agreement when it is intended to be binding upon the contracting party by the use of the website.
Conclusion
Since the IT Act from 2000, the IT laws in India have changed. However, many aspects of an Online Contract, in particular, signature and stamping, remain uncertain and confused. The current trend of demonetization and digitalization seems a necessity, and we sincerely hope that the government would take appropriate action in that regard, to eradicate all uncertainties in relation to the validity of e-contracts.
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