Over the past years, the world has borne witness to innumerable technological advancements. Gone are the days when people could interact with each other over the telephone and letters only. In this day and age, thanks to the emergence of the Internet and other technological devices, people can administer businesses, correspond with others, and conduct transactions on a day to day basis.The field of communication has undergone several massive changes over the years.E-commerce or internet commerce is booming as more and more people are taking to the internet to satisfy their requirements.
ONLINE CONTRACTS
Various establishments and ideas have been set in motion as a result of the emergence of the internet. One such thing is “Online Contract”. A contract has been defined as an agreement enforceable by law under Section 2 of the Indian Contract Act, 1872. Section 10 of the Indian Contract Act, 1872 further mentions that an agreement is a contract if it is executed by the free consent of parties competent to contract, for a lawful consideration and object, and has not been expressly declared to be void. Meanwhile, void agreements have been explainedover Sections 24-30 of the Act. Online Contract, therefore, is nothing but a type of contract which is accomplished over the internet. This type of contract is devised and signed or agreed to through the agencies of electronic mediums and the internet. For instance, numerous online businesses, software, and so on require their users to relay their consent by ticking or clicking on “I agree to the terms and conditions” or “I accept”button that usually pops up.The “Electronic Signature” or “Digital Signature”, which has been explored in the Information Technology Act, 2000, is of great significance when it comes down to these type of contracts. It carries as much consequence as a traditional or hand-written signature does as it is indicative of acceptance or consent.
ESSENTIAL FEATURES OF AN ONLINE CONTRACT
The essential or significant features of an Online Contract are very similar to that of a standard or traditional contract. These include:
- Offer – Section 2(A) of the Indian Contract Act has stated the definition of Offer concerning contract. An “Offerer” or “Promiser” is the person who is making the offer which is then accepted by an “Offeree” or “Promisee”.
- Acceptance and acknowledgment of the offer made – Acceptance and acknowledgment of an offer have been explored under Section 2(B) of the Indian Contract Act, 1872. In case of online contracts, a person can impart his acceptance through various methods such as emails, or by simply clicking an “I agree” button.
- Lawful Consideration and Lawful Object –Legal or Lawful Consideration is an essential feature of a contract. Consideration is something that is of value and is given by both parties into a contract.
Under Section 23 of the Act, it is mentioned that the consideration and object of a contract will not be considered lawful if they are:
- specifically forbidden by law
- of such a nature that they go against the provisions of law
- of fraudulent nature
- involve or imply injury to any other person or property
- regarded by courts as immoral
- opposed to public policy
- Parties must be competent enough to enter into a contract –Another essential feature of a valid contract is that the parties must be mentally fit and legally capable enough to enter into a contract. For instance, under the Indian Contract Act, a person who has not attained the age of majority or a person who is of unsound mind is considered to be incapable of entering into a contract.
- Free Consent – The parties of a contract must have agreed to the same out of their own free will and consent.
- Intention to createlawful or legal relations –An agreement or promise which is social and carries no intention of creating a lawful relationship is not a contract.
- There should be a possibility of performance – An executable or implementable contract is one wherein there is no uncertainty or ambiguity when it comes down to performance or execution.
TYPES OF ONLINE CONTRACT
Online contracts are mainly of three types which include click-wrap agreements, shrink-wrap agreements, and web-wrap agreements.
- Click-wrap agreements –Click-wrap agreements are those wherein the user confirms his acceptance by clicking on any “I agree”, “I accept”, or “I disagree” button that may pop up. For example, online shopping sites are growing at a rapid pace as people from all over the world are accessing whatever these sites have to offer. These sites often need the buyers to agree to certain terms and conditions before the sale of any item or product.
- Shrink-wrap agreements –Shrink-wrap agreements include any lawful undertaking or pledge that is contained within a packaged product and can be viewed once it has been brought and opened by a buyer. Products such as CD ROM and Software products come under the vicinity of Shrink Wrap agreements as the terms and conditions can only be accepted by the buyer after the packaging has been opened.
- Browse-wrap agreements–Growth of various online establishments has necessitated the usage of click-wrap and browse-wrap agreements. However, unlike click-wrap agreements, the user need not make his assent known by expressly agreeing to any terms and conditions. The user or consumer confirms his accepting simply by visiting and using the website.
VALIDITY OF ONLINE CONTRACTS IN INDIA
Section 10A of the Information Technology Act, 2000 explores the validity of Contracts that are drawn up and executed through the agency of electronic measures. An e-contract stands valid and applicable under the aforementioned section as long as it fulfills the necessary conditions provided under the Indian Contract Act, 1872.
However, in India, there is a distinct lack of legal precedents and substantial standards with regard to the administration or applicability of e-contracts. Furthermore, the majority of the population faces lots of trials and tribulations when it comes down to the usage of the internet. People tend to often agree to certain terms and conditions without even going through them. Individuals have often had to suffer unprecedented consequences as a result.
The Internet has truly revolutionized the way people conduct their affairs and has made everything easily available to us. The government of India has launched several initiatives to ensure that the citizens of the country don’t fall back while the rest of the world advances by leaps and bounds. Online contracts, in modern times, can indeed be more efficient and useful as compared to conventional contracts as it saves a lot of time and money.
By-
Abantika Ghosh
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