Academic Article- by Cheena Khanna
INTRODUCTION
People's living standards have changed dramatically as a result of recent technological advancements. The purchasing and selling of information, products, and services using computerized communication networks are referred to as electronic commerce. With the advent and continuous rise of e-commerce, the usage of e-contracts is rapidly increasing. However, the notion of an e-contract is still ambiguous, and it confronts several problems. The common contractual rule has legislative recognition in India's contract law. The Indian Contract Act of 1872 does not provide the rights and obligations that the law will enforce; rather, it establishes the limiting principles under which parties may define their rights and obligations.
A software system models, specify, executes, and deploys an electronic contract. Traditional (paper-based) business contracts are conceptually comparable to e-contracts. Prospective buyers are presented with vendors' items, pricing, and terms. Buyers weigh their selections, negotiate pricing and terms (if at all feasible), place orders, and pay for them. The sellers then deliver the ordered items. Electronic trade, however, presents some new and fascinating technological and legal difficulties because of the ways it varies from traditional commerce.
MEANING OF CONTRACT
The Indian Contract Act of 1872 addresses the concepts of contract law, their fundamental aspects, their creation, execution, and remedies for contract breaches. It establishes the circumstances under which parties to a contract make promises, general principles of contract formation, and provides the remedies available in a court of law for a breach of contract against a person who fails to execute his contractual obligations. An agreement, according to Section 10 of the Indian Contract Law, 1872, is a legally enforceable contract. An agreement is legally binding and can be classified as a legitimate contract if it is formed by competent parties with their voluntary assent for a lawful purpose and compensation. In simple terms, a contract is an agreement between two or more parties with the intent of forming a legal relationship, in which one party makes a proposal and the other accepts it, resulting in a promise. This acceptance must be firm and not vague, and it must be free of undue influence, coercion, or misrepresentation. Both contracting parties must be of legal age, of sound mind, and not be disqualified by any legislation in force in India at the time. The contract's purpose and consideration must be legal, according to Section 23 of the Indian Contract Act, 1872. It must be specific, definite, and not vague, as well as capable of being carried out. A contract can be made orally or in writing. In India, contracts of mortgages, sales, and leases, for example, must be made in writing, witnessed by witnesses, signed by the parties, and registered by the parties to be enforceable.
ONLINE CONTRACT
With the widespread use of the internet and electronic commerce, online contracts have become increasingly important, owing to their reach and variety. An online contract, sometimes known as an electronic contract, is a contract that is created, signed, and executed electronically, most commonly through the internet. An online contract is theoretically very similar to a typical paper-based contract and is written in the same way. In the event of an online contract, the seller who wants to sell their items presents the prospective purchasers with their products, pricing, and terms for purchasing such products. Buyers who are interested in purchasing the items can then either ponder or click on the 'I Agree' or 'Click to Agree' option to indicate their approval of the seller's conditions, or they can sign electronically. Electronic signatures can be created in a variety of methods, including entering the signer's name in the designated signature box, copying and pasting the scanned version of the signature, or selecting an appropriate choice. The transaction can be finalized once the conditions have been agreed upon and payment has been paid. Communication takes place primarily between two computers via servers.
ESSENTIAL ELEMENTS OF ONLINE CONTRACT
Offer- One of the most important parts of an online contract, much like a paper-based or traditional contract, is the necessity for an offer to be made. A legal proposal or offer must be made by one party, known as the proposer, and it is the basis for a contract. The customer makes an offer to acquire products and services offered on the seller's website by exploring and selecting them in response to the seller's invitation to offer.
Acceptance- A proposition or offer becomes a promise when it is accepted by the person to whom it is made. The proposal's acceptance must be unconditional and unequivocal, and it must be notified to the proposer or offeror. If the contract is formed online, the offer and acceptance can be made through e-mail or by filling out the required form on the website. They may also be required to sign an online agreement by clicking 'I Agree' or 'I Accept' to use the services.
Intention to create a legal relationship- There is no contract between the parties to a contract if neither of them intends to create a legal relationship. The intention of the parties to the contract to form legal connections is a necessary component of a valid contract. The parties' intent is to be evaluated by the Court in each case, and it must be determined from the wording of the agreement and the consequences that follow. Social or domestic agreements do not establish a legal relationship; hence they are not contracts and are not enforceable by law.
There must be a lawful object- The contracting parties must agree on a legal object. A contract is only legally enforceable if it is made for a legal purpose. It can't be used to circumvent any legal provisions, and it can't be used to commit fraud. As a result, a contract made on a website dedicated to the sale of illegal substances online is void.
CONCLUSION
In the year 2015, an initiative known as ‘Digital India’ was launched by Narendra D. Modi, the present Prime Minister of India. This campaign was launched to ensure that government services are available to the citizens of our country in any electronic way which will lead to the improvement of online infrastructure and internet connectivity in our country. The initiative of Digital India aims to connect rural areas with high-speed internet networks and consists of three components such as the creation of digital infrastructure, Delivery of services digitally, and digital literacy. Its main objective is to make our country digitally empowered in the field of technology.
An online contract is created and implemented to ensure the security of online transactions. It was established to combat fraud, promote and create trust in legitimate online transactions, and give the notion of digital signature legal validity. In comparison to the old approach of paper and writing contracts, an online contract is an a lot more efficient idea in terms of time and money. However, to keep up with the rapid growth of technology, India will need to pass its legislation on electronic or online contracts.
REFERENCE
https://www.legalserviceindia.com/articles/ecta.htm
https://blog.ipleaders.in/all-you-know-about-online-contracts/
https://www.lexology.com/library/detail.aspx?g=51d978bb-295b-41d0- 956a-d8af73821dfd
well done ,keep it up !