“E-Contract laws with contractual formation &

Challenges”

Abstract

E contracts legislation & its comparative study & critical
approach is very important study for E-commerce review. The
main object of research paper to focus on exact fact of e-
contract .it is not paper based contract but it is electronic
contract. Most of the Web-wrap agreements, Ship-wrap
agreements are known as electronic contract. According to
Indian Contract Act 1872, Section 10 laid down valid
elements of that.

In reality as per observation we come across lack of
provision in formation of e-contract. Information Technology
Act, Cyber law, Indian contract Act, Indian Evidence Act not
wholly justified to electronic contract. Today’s computerized
generation need more protection. Our Indian judiciary in
many landmark judgments’ rejected legality of computer.
Then it’s very difficult to define our even justified validity of
electronic contract.

The conventional law relating to address all the issues
that arises in e-contracts. It solves some of the peculiar
issues that arise in the formation & authentication of e-
contracts.

We often come across these e-contracts in our
day to day life but are unaware of the legal complexities &
challenges connected to it.

Key words: - E-commerce, Web-wrap agreements, Ship-wrap
agreements Information Technology Act,
conventional law.

______________________________________________________________________
_________________

Home Add.T/D.YTC. An E- document may be used to satisfy a statutory requirement of: writing.Maharashtra.. issuance or payment. MBA Faculty.DCL.Asst.Maharashtra. India's Information Technology Act (ITA) recognizes the legal validity of E-documents. Rules are provided for the regulation of Certification Authorities (CA) and third parties whose duty is to vouch for the authenticity and integrity of an electronic message that has been signed with a digital signature.Training & Placement officer. retention.PhD Regd. acknowledgement of receipt. and governmental filing. Ordinarily. Those rules are implemented by the Controller. 5. 9881543555 “E-Contract laws with contractual formation & Challenges” Researcher has explained that. no party may offer certification services without a license. 1) tpo_ytc@yes. and manage outstanding certificates by keeping the information in them current. trusts. Prof.DLL. The federal . A CA's license may be suspended or revoked for good cause shown.-Satara. and sales of real property.Name.edu.P.com Mo. publication.Ghadge (BSL.A/P-Khindwadi. The Controller appoints adjudicating officers to hear both civil and criminal cases relating to the ITA and to render decisions accordingly. 2) neetaghadge0707@gmail. issue certificates to successful applicants. negotiable instruments and powers-of-attorney. The ITA includes civil and criminal offenses and related penalties.Satara. A digital signature complies with a statutory requirement for a handwritten signature to be affixed on paper. YSPM’S. E-mail add . Appeal may be taken to the Cyber Regulations Appellate Tribunal and eventually to the High Court.No. and also promotes E-government. E-documents are not allowed in wills. and suspending or revoking them if they contain inaccuracies.in. network service providers have limited liability. The ITA includes E-contract rules relating to: attribution.Aashirwad.N. Subscribers are responsible for ensuring that all information given to the CA is accurate and that all information contained in the certificate is correct.. and time and place of transmission and reception of an electronic message.LLM.) Designation. A CA is mandated to: publicly display its license. authentication. E-signatures and E-contracts. Office Add. India has adopted a compulsory system of CA licensing.

logical and implementation. But deployment of electronic contracts poses a lot of challenges at three levels. The communication is no more restricted due to the constraints of geography and time. such as a computer program. However miniscule it may seem to a lay man. E-contract is any kind of contract formed in the course of e-commerce by the interaction of two or more individuals using electronic means. there is a rapid advancement in the use of e-contracts. or the interaction of at least two electronic agents that are programmed to recognize . It is a means of transacting business electronically. assent is generally shown by the conduct of tearing the CD package and using it. can be strictly enforced against us. software and information technology have resulted in changing the standard of living of people in an unimaginable way. telecommunications technology. today with the recent advancement in the areas of computer technology. Researcher has analyzed that. that we hardly even bother to read. over the Internet. With the growth of e-commerce. It is quite unlikely for most computer literate people in India that a day has passed without him or her coming across a point while dealing with computers where he or she did not had to manifest his or her assent to some terms . This e-commerce is associated with the buying and selling of information.In case of surfing the Internet. Information is transmitted and received widely and more rapidly than ever before. It is the tool that leads to ‘enterprise integration’. space. these actions of ours is of immense importance because it leads to a valid and enforceable contract and those terms. distance. usually. In our article we have discussed the scope. government of India and the Controller are empowered to issue regulations necessary for implementation of the ITA. the interaction of an individual with an electronic agent. such as e-mail. namely conceptual. time. and payment. it is generally done by clicking on some icon like "I Agree" and in cases of installing a software. Definition of E-Contract: According to Sir William Anson: A contract is a legally binding agreement between two or more persons by which rights are acquired by one or more acts or forbearance on the part of the other or others. nature and legality and various other issues related to e-contracts. Most of us do it as just another "necessary evil" to get our job done. And this is where the electronic commerce offers the flexibility to business environment in terms of place. products and services via computer networks.

Basic forms of E-Contract Generally the basic forms of "E-Contracts" that a person comes across if he is computer savvy are:  The Click-wrap or Web-wrap Agreements. It is designed to assist people in formulating and implementing commercial contracts policies within e-businesses. These programs do not have the capabilities to handle complex relationships between parties to an e-contract E-contracts are conceptually very similar to traditional (paper based) commercial contracts. Traditional contract Principles and remedies also apply to e-contracts. executed and enacted by a software system. prices and terms to prospective buyers. the vendors deliver the purchased products. Vendors present their products. Researcher has defined that an e-contract is a contract modeled. The best way to imagine the transfer of data between computers is to treat it as a telephone conversation. negotiate prices and terms (where possible).the existence of a contract. Buyers consider their options. E-contracts can be mapped to inter-related programs.  The Electronic Data Interchange or (EDI). which have to be specified carefully to satisfy the contract requirements. Web-click contracts: The case of web-click or click-wrap contracts is different as such contracts are formed instantaneously: “The main difference between click-wrap contracts and e-mail is that communications between web clients and servers. place orders and make payments. unlike e-mails is instantaneous. electronic commerce raises some new and interesting technical and legal challenges. Then. E-Contract is an aid to drafting and negotiating successful contracts for consumer and business e-commerce and related services. If either party goes offline at any point.  The Shrink-wrap Agreements. This is also known as electronic contract. just one between computers rather than individuals. because of the ways in which it differs from traditional commerce. It contains model contracts for the sale of products and supply of digital products and services to both consumers and businesses. This is because all . the other will be aware of the change in status. Computer programs are used to automate business processes that govern e-contracts. Nevertheless.

communication of an offer or acceptance in the web-click mode is complete when the addressee is in receipt of the electronic record as defined in Section 13(2) of the IT Act. leading eventually to the shipment of the goods) can be processed with virtually no paperwork. .communications between clients and servers have an inbuilt self-checking mechanism called a check sum. Now let us see the peculiarities of these contracts and the specific industries that put it to use. Inc v. First and foremost are the Click-wrap agreements. The Shrink-wrap Agreements: These are the agreements generally contains the CD Rom of software. The validity of the Shrink-wrap agreements first came up for consideration in the famous case of ProCd. The user has right to return if the new terms and conditions are not to his liking. whether it be granting of a permission to access a site or downloading of a software or selling something by way of a website. These type of contracts are extensively used on the Internet. The terms and conditions are printed on the cover of CD Rom. Click-wrap agreements are those whereby a party after going through the terms and conditions provided in the website or program has to typically indicate his assent to the same. Here unlike the other two there is exchange of information and completion of contracts between two computers and not an individual and a computer. Electronic Data Interchange or (EDI): These contracts used in trade transactions which enables the transfer of data from one computer to another in such a way that each transaction in the trading cycle (for example. commencing from the receipt of an order from an overseas buyer.” Click-wrap or Web-wrap Agreements: These are the agreements which we generally come across while surfing internet such as “I AGREE” to the terms or “I DISAGREE” to the above conditions. Further. through the preparation and lodgment of export and other official documents. Zeidenburg17 where it was held "that the very fact that purchaser after reading the terms of the license featured outside the wrap license opens the cover coupled with the fact that he accepts the whole terms of the license that appears on the screen by a key stroke. by way of clicking on an "I Agree" icon or decline the same by clicking "I Disagree". constitutes. Sometimes additional terms are imposed when in such licenses appear on the screen when the CD is downloaded to the computer.

Professor Amices Mahapatra was arrested on account of forwarding of caricature/cartoons on Face book. thus increasing automation. Further. In K V Rao case. Formalities and Interpretation . Further. 2000. In India.V. Ravi Srinivasan Twitter case showed how on a complaint. 2000. On the other hand. With this. Challenges in formation of E contract E-contracts are well suited to facilitate the re-engineering of business processes occurring at many firms involving a composite of technologies. Professor Amices Mahapatra was arrested on account of forwarding of caricature/cartoons on Face book. On the one hand they reduce costs.Social Media & Indian Cyber Law Researcher has find out social media & Indian cyber law approach that. a person’s tweets could be brought within the ambit of Section 66A of the amended Indian Information Technology Act. Rao and Mayank from Mumbai were arrested for allegedly posting offensive comments against some leaders on their Face book group. Therefore the object is to create default rules for attributing a message to a party so as to avoid any fraud and discrepancy in the contract. but on how risk should be structured in an automated environment. 2000 on different occasions. the proposal focuses not on humans who make decisions on specific transactions. and business strategies that aids the instant exchange of information. processes. saves time. fasten customer response and improve service quality by reducing paper work. 2000 on different occasions. In India. two men K. In Professor Amices Mahapatra case. there has been a lot of controversy over the last few months over Section 66A of the Indian Cyber law being the amended Indian Information Technology Act. there has been a lot of controversy over the last few months over Section 66A of the Indian Cyber law being the amended Indian Information Technology Act. The e-contracts have their own merits and demerits. a person’s tweets could be brought within the ambit of Section 66A of the amended Indian Information Technology Act. In Professor Amices Mahapatra case. since in electronic contract. E-commerce is expected to improve the productivity and competitiveness of participating businesses by providing unprecedented access to an on-line global market place with millions of customers and thousands of products and services. Ravi Srinivasan Twitter case showed how on a complaint.

the next hurdle to overcome is determining whether an electronic contract is otherwise enforceable and. Moreover.C. So long as the writing provides a sufficient basis to determine that it is part of an actual transaction. Principally.or whether instantaneous messaging obviates the mailbox rule for delivery of acceptances . a court will refuse to enforce what may be an otherwise valid agreement that fits one of the six categories of contracts within the typical American Statute of Frauds. Absent a coherent framework for enforcement of electronic agreements. Following the initial decision to adapt existing contract law to the electronic medium. the Statute of Frauds has not escaped exceptions and relaxation. The following discussion centers upon several key concepts.is issues that infect the core purpose of traditional contract formalities.Given that the liberalized concept of mutual assent may support the finding of an electronic contract. Although general contract law and the U. Statute of Frauds A basic rule of contract law is that certain types of agreements must be in writing before they may be enfor Absent a writing and the signature of the party charged.C. . Whether a string of electronic bits stored in the memory cache of a laptop satisfies the writing requirement of the Statute of Frauds . Further. the enforcement and interpretation of these agreements as valid contracts is an equally vital concern for business.C. the Statute of Frauds is satisfied. if so. . While parties may assent to create electronic contracts. yielding to innovation only when technology has rendered these concepts obsolete. delivery of communications. predictability and commercial practicality suffer. § 2-201 has liberalized the rule to require only a writing that contains a quantity term for the sale of goods. including the Statute of Frauds. . the authors' development of issues traces a path that attempts to retain the traditional concepts.C. the writing requirement may become inapplicable through part performance and where promissory estoppel may defeat a Statute of Frauds defense to yield a more equitable result. while limiting memory problems when the contract terms are questioned in court. the parol evidence rule. have developed bright-line rules to address these issues the electronic medium undercuts several basic assumptions that structure established rules. U. the Statute of Frauds continues to require written contract in certain instances to "promote[] certainty and deliberation . how to determine its legal effect.Employed over the years to guard against fraud and discourage perjury. and consideration. these concerns focus upon compliance with contract formalities and rules of interpretation. no [*247] writing is required unless the contract price is $ 500 or more." Although a long accepted tenet of contract law. For example.

It is a faithful system in that the mail server delivers a message to the receipt that it is directed to. Thus. the rule requires a written memorial and the signature of the party charged. There are already many research is going on for various email clients to control the spam’s by using filters. in light of its purposes. IX of the IT Act . As previously mentioned. So the next time you uninterestingly click on an "I agree" button without even caring to see the terms or hurriedly tear the wrap of software CD being least interested about the terms typed on it "Think Twice"! They are all are valid contracts and you could be made liable for the terms and conditions laid down there. and their results. This level of confidence becomes a problem when anyone in the world can send an email to anyone Individuals and organizations that send unsolicited email (spammers) are taking vantage of this relying system. Jurisdiction Landmark Cases Decided by the Adjucation Office U/Chapt. should remain an integral part of contract law in the electronic world. the user’s requirements and the role of the spam filter as according to our need and specific requirements.simple concepts in a paper-and-ink world that are obviously different in a paperless electronic universe. There are comparisons are not easy. as benchmarks. We survey these efforts. Here we are going to advocate several prevalent filtering techniques and propose our work to acknowledge them. Although several modern commentators view continued use of the Statute of Frauds as an outmoded anachronism the Statute can retain its place and. the question is whether the Statute of Frauds can apply to electronic contracts whose components simply do not fit the traditional interpretations of "writing" and "signature" that the Statute originally intended. many uncertainties still remain which effect on filtering spam techniques and check the validity of spam filter evaluation techniques. the author's believe. measures. and methods for evaluating spam filters are still evolving. Electronic contracts provide an opportunity to revisit the Statute of Frauds to determine its modern vitality. In spite of recent development in evaluation methodology. In doing so we have examined the definition of spam. the concepts of "writing" and "signature" must be developed to fit the Internet email is an electronic system Internet email is an electronic system through which messages are transported between systems on the behalf of their users. To understand its continued importance.

M & Suri R. Government of Tamilnadu. many uncertainties still remain which effect on filtering spam techniques and check the validity of spam filter evaluation techniques.com 4.800/. 2011 Petitioner. ICICI Bank. edn 1. Reference 1. Here we are going to advocate several prevalent filtering techniques and propose our work to acknowledge them. the user’s requirements and the role of the spam filter as according to our need and specific requirements. Civil Jurisdiction.Thomas Raju Vs. There are comparisons are not easy. Petitioner claimed that he had suffered a wrongful loss due to unauthorized access to his savings account at the Anna Nagar branch of ICICI Bank. as benchmarks. Bakshi P. 62. So the next time you uninterestingly click on an "I agree" button without even caring to see the terms or hurriedly tear the wrap of software CD being least interested about the terms typed on it "Think Twice"! They are all are valid contracts and you could be made liable for the terms and conditions laid down there.asianlaws. We survey these efforts. Conclusion There are already many research is going on for various email clients to control the spam’s by using filters. In spite of recent development in evaluation methodology. Wadhwa & Co. The Branch Manager.as a result of the phishing attack. measures. an employee of a Chennai based IT company. Cyber and E-commerce Laws.1. Bharat Publishing House. Petition No. The said amount was supposed to have been transferred on the account of another customer of ICICI Bank. and methods for evaluating spam filters are still evolving. edn.K. Anna Nagar Branch. www. Ryder D. 2. 3 of 2011 Dated– 16th May. Publishers. suffered a loss of Rs. www.org . In doing so we have examined the definition of spam. 2002. 1. 3. Chennai Case decided by – the Adjudicating officer.legalserviceindia. and their results. 2001.Rodney. Guide to Cyber Laws. (I) Shri.