VUENOW MARKETING SERVICES LTD.

CIN: U74999UP2016PLC084440
info@mycloudparticles.com

Note on E-Contracts : Legal Status

The Indian Contract Act, 1872 is the law relating to contracts in India. According to this law, both the parties
should be legally eligible. This means that all the parties should be major (above the legal minor age), and
should be of sound mind. Further, both parties should enter into the contract willingly and without being
coerced (intimidation, by threats or force) into it.Also, the contract should be made for lawful object and
consideration.

An online contract or an electronic contract is an agreement modeled, signed and executed electronically,
usually over the internet. The seller, who intends to sell their products, presents their products, prices and terms
for buying such products to the prospective buyers. In turn, the buyers who are interested in buying the products
click on the ‘I Agree’ or ‘Click to Agree’ option for indicating the acceptance of the terms presented by the
seller. Once the terms are accepted and the payment is made, the transaction can be completed. The
communication is basically made between two computers through servers.

The Information Technology Act, 2000 provides various procedural, administrative guidelines and regulates the
provisions relating to all kinds of electronic transactions

There is no specific way of communicating offer and acceptance; it can be done verbally, in writing or even by
conduct. Thus oral contracts are as valid as written contracts; the only condition is they should pose all the
essentials of a valid contract. A contract happens when an offer is accepted and the acceptance is intimated
(conveyed, communicated). This intimation must be by some external manifestation which the law regards as
sufficient.

As per the Indian Evidence Act, 1872, any e- mail communication and other communication made
electronically is recognized as valid evidence in a Court of law. Hence, even in the absence of any specific
legislation validating e-contracts cannot be challenged because they are as much valid as a traditional contract is.

It may be concluded that where various steps of a contract have been affected through electronic means, the
parties have mutually entered into the agreement of their own free will and such an agreement fulfills all the
essentials of a valid contract under the Indian Contract Act, 1872 mentioned above, then, such e-contract is
valid and legally enforceable.

VUENOW MARKETING SERVICES LTD.

816, 8th Floor, iThum Tower A Sector 62, NOIDA Uttar Pradesh, India 201301

Page 1 of 1