UNIT-8 AUTHENTICATION OF

ELECTRONIC RECORDS &

ELECTRONIC GOVERNANCE
BY- MS. SHIVANGI SINHA
ASSISTANT PROFESSOR
NLC BVDU, PUNE
OUTCOME:-

• FORMATION OF ELECTRONIC CONTRACT

• LEGAL ISSUES INVOLVED
• PROBLEMS IN TAXING E- COMMERCE
• LEGAL RECOGNITION OF ELECTRONIC RECORDS
FORMATION OF ELECTRONIC CONTRACTS:-

• E-CONTRACT IS ONE OF THE DIVISIONS OF E-BUSINESS.IT HOLDS A SIMILAR MEANING OF

TRADITIONAL BUSINESS WHEREIN GOODS AND SERVICES ARE SWITCHED FOR A
PARTICULAR AMOUNT OF CONSIDERATION. THE ONLY EXTRA ELEMENT IT HAS IS THAT THE
CONTRACT HERE TAKES PLACE THROUGH A DIGITAL MODE OF COMMUNICATION LIKE THE
INTERNET. IT PROVIDES AN OPPORTUNITY FOR THE SELLERS TO REACH THE END OF
CONSUMER DIRECTLY WITHOUT THE INVOLVEMENT OF THE MIDDLEMEN.
• THE INDIAN CONTRACT ACT, 1872 RULES THE WAY IN WHICH CONTRACTS ARE MADE AND
COMPLETED IN INDIA. IT RULES THE WAY IN WHICH THE REQUIREMENTS IN A CONTRACT ARE
IMPLEMENTED AND CODIFIES THE EFFECT OF A BREACH OF CONTRACTUAL PROVISIONS.
• ELECTRONIC CONTRACTS (CONTRACTS THAT ARE NOT PAPER BASED BUT RELATIVELY IN
(ELECTRONIC FORM) ARE BORN OUT OF THE NEED FOR SPEED, EASE AND EFFICIENCY.
CONTINUED:-
• ESSENTIALS OF AN ELECTRONIC CONTRACT:
AS IN EVERY OTHER CONTRACT, AN ELECTRONIC CONTRACT ALSO REQUIRES THE FOLLOWING NECESSARY
REQUIREMENTS:
1. AN OFFER REQUIREMENTS TO BE MADE
• IN MANY CONTACTS (WHETHER ONLINE OR CONVENTIONAL) THE OFFER IS NOT MADE DIRECTLY ONE-ON-
ONE. THE CONSUMER ‘BROWSES’ THE AVAILABLE GOODS AND SERVICES SHOWED ON THE SELLER’S
WEBSITE AND THEN CHOOSES WHAT HE WOULD LIKE TO PURCHASE. THE OFFER IS NOT MADE BY
WEBSITE SHOWING THE ITEMS FOR SALE AT A PARTICULAR PRICE. THIS IS ESSENTIALLY AN INVITATION TO
OFFER AND HENCE IS REVOCABLE AT ANY TIME UP TO THE TIME OF ACCEPTANCE. THE OFFER IS MADE BY
THE CUSTOMER ON INTRODUCTION THE PRODUCTS IN THE VIRTUAL ‘BASKET’ OR ‘SHOPPING CART’ FOR
PAYMENT.
2. THE OFFER NEEDS TO BE ACKNOWLEDGED
• AS STATED EARLIER, THE ACCEPTANCE IS USUALLY ASSUMED BY THE BUSINESS AFTER THE OFFER HAS
BEEN MADE BY THE CONSUMER IN RELATION WITH THE INVITATION TO OFFER. AN OFFER IS REVOCABLE
AT ANY TIME UNTIL THE ACCEPTANCE IS MADE.
LEGAL ISSUES INVOLVED:-

BASIC FORM OF E- CONTRACTS:-1. 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. 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, BY WAY OF
CLICKING ON AN "I AGREE" ICON OR DECLINE THE SAME BY CLICKING "I DISAGREE". THESE TYPE OF
CONTRACTS ARE EXTENSIVELY USED ON THE INTERNET, WHETHER IT BE GRANTING OF A
PERMISSION TO ACCESS A SITE OR DOWNLOADING OF A SOFTWARE OR SELLING SOMETHING BY
WAY OF A WEBSITE.
THE SHRINK-WRAP AGREEMENTS: THESE ARE THE AGREEMENTS GENERALLY CONTAINS THE CD
ROM OF SOFTWARE. THE TERMS AND CONDITIONS ARE PRINTED ON THE COVER OF CD ROM.
SOMETIMES ADDITIONAL TERMS ARE IMPOSED WHEN IN SUCH LICENSES APPEAR ON THE SCREEN
WHEN THE CD IS DOWNLOADED TO THE COMPUTER. THE USER HAS RIGHT TO RETURN IF THE
NEW TERMS AND CONDITIONS ARE NOT TO HIS LIKING. 
CONTINUED:-
• THE INFORMATION TECHNOLOGY ACT, 2000, WAS AUTHORIZED BY THE INDIAN PARLIAMENT.TO UNDERSTAND
SOME OF THE EXCEPTIONAL ISSUES THAT AROSE IN THE ARRANGEMENT AND VERIFICATION OF ELECTRONIC
CONTRACTS.
• SECTION 10A OF THE ACT GIVES THE LAWFUL PORTRAYAL TO LAWFULNESS AND IMPLEMENTATION OF E-
CONTRACTS UNDER IT ACT 2000. IT GIVES THAT “WERE IN CONTRACT DEVELOPMENT, CORRESPONDENCE OF
PROPOSITION, THE DENIAL OF THE PROPOSITION AND ACKNOWLEDGEMENT AS THE CASE IS COMMUNICATED IN
ELECTRONIC STRUCTURE OR BY AN ELECTRONIC RECORD. IT WAS ADDED IN THE ACT BY THE AMENDMENT IN 2008.
• ON THE OTHER HAND, SECTION 11 OF THIS ACT TALKS ABOUT ATTRIBUTION OF DIGITAL STATISTICS IN WHICH AN
ELECTRONIC REPORT SHALL BE ATTRIBUTED TO THE ORIGINATOR, (A) IF IT CHANGED INTO SENT THROUGH THE
ORIGINATOR HIMSELF; (B) UTILIZING AN INDIVIDUAL WHO HAD THE POWER TO FOLLOW UP IN THE INTEREST OF
THE ORIGINATOR IN REGARD OF THAT ADVANCED RECORD, OR (C) THROUGH A DATA MACHINE CUSTOMIZED
THROUGH OR FOR THE BENEFIT OF THE ORIGINATOR TO WORK MECHANICALLY. 
• APART FROM THESE SECTIONS, SECTION 2(P) OF THE INFORMATION TECHNOLOGY ACT, 2000 DEFINES DIGITAL
SIGNATURES AS AUTHENTICATION OF ANY ELECTRONIC RECORD BY A SUBSCRIBER EMPLOYING AN ELECTRONIC
METHOD OR PROCEDURE.
PROBLEMS IN TAXING E- COMMERCE:-
• THE TAXATION POLICIES OF COUNTRIES BASED ON TERRITORY AND
JURISDICTION HAS BEGUN TO FAIL AFTER IMPROVING ECOMMERCE.
CONCEPTS LIKE PERMANENT ESTABLISHMENT, SALE POINTS, PRODUCT AND
INCOME CLASSIFICATION THAT USING IN TAXATION PROCESS HAVE BEEN
REMAINED INADEQUATE.
• WHEREAS DETERMINING LOCATION OF SELLER AND CONSUMER AT
TRANSACTION ON INTERNET IS DIFFICULT, TAX REVENUE LOSS HAS BEEN
EXISTED. ELECTRONIC COMMERCE ALLOWS BUSINESSES TO GET THEIR
REVENUE WITHOUT ANY PHYSICAL PRESENCE.
• BECAUSE OF THESE IMPLICATIONS OF E-COMMERCE, TAX ADMINISTRATIONS
REACH HARDLY INFORMATION ABOUT TAXES THAT SHOULD BE COLLECTED
AND THEREBY TAX LOSS EXISTS.
LEGAL RECOGNITION OF ELECTRONIC RECORDS:-
• VARIOUS SECTIONS UNDER THE INFORMATION TECHNOLOGY ACT 2000 DEALS WITH THE RECOGNITION
OF ELECTRONIC RECORDS, TO WHAT EXTENT THEY CAN BE USED AND THEIR SCOPE IN TODAY’S WORLD.
SECTION 4 OF THE INDIAN IT ACT, 2000 CONFERS LEGAL RECOGNITION TO ELECTRONIC RECORDS. 
• SECTION 5 CONFERS LEGAL RECOGNITION TO DIGITAL SIGNATURES AND EQUATES IT WITH
HANDWRITTEN SIGNATURES. THE AUTHENTICATION OF SUCH DIGITAL SIGNATURES WILL BE ENSURED
BY MEANS OF DIGITAL SIGNATURES AFFIXED IN SUCH MANNER AS THE CENTRAL GOVERNMENT
PRESCRIBES.
• SECTION 6 AIMS TO ELIMINATE RED TAPISM AND PROMOTE USE OF ELECTRONIC RECORDS AND
DIGITAL SIGNATURES IN GOVERNMENT AND ITS AGENCIES. IT PROVIDES FOR FILING DOCUMENTS
ONLINE WITH GOVERNMENTAL AUTHORITIES, GRANT OF LICENSES /APPROVALS AND
RECEIPT/PAYMENT OF MONEY.
• SECTION 7 ALLOWS RETENTION OF ELECTRONIC RECORDS AKIN TO PAPER BASED RECORDS TO FULFIL
LEGAL REQUIREMENT OF RETENTION OF RECORDS WHERE INFORMATION IS RETAINED IN ELECTRONIC
FORM AND THE MANNER IN WHICH THESE INFORMATION IS ACCESSIBLE.
CONTINUED:-

• IN CASE OF THE ELECTRONIC AS WELL AS THE TRADITIONALLY PRINTED

GAZETTE, IT IS STIPULATED THAT PUBLICATION OF RULES, REGULATIONS AND
NOTIFICATIONS IN THE ELECTRONIC GAZETTE SHALL ALSO BE LEGALLY
RECOGNIZED, AS PER SECTION 8 OF THE INFORMATION TECHNOLOGY ACT,
2000.
• UNDER SECTION 10 OF THE ACT, THE CENTRAL GOVERNMENT HAS BEEN
CONFERRED WITH THE POWER TO MAKE RULES IN RESPECT OF DIGITAL
SIGNATURE, INTERALIA, THE TYPE, MANNER, FORMAT IN WHICH DIGITAL
SIGNATURE IS TO BE AFFIXED AND PROCEDURE OF THE WAY IN WHICH THE
DIGITAL SIGNATURE IS TO BE PROCESSED.
THANK YOU!