However, the recent judgment of the Court of Cassation5 on this point, which ignores the formalities of concluding a valid contract, gives a little respite to e-commerce actors. The Information Technology Act excludes from its scope the documents listed in Schedule I of the Act, which include wills, powers of attorney, transfers of immovable property, etc. These are excluded from the electronic contract, as registration of these documents with the authorities is required. Transportation documents such as leases, mortgages and purchase agreements are an integral part of real estate business and unenforceable remote transfer deeds have posed challenges for the real estate industry during the pandemic. Although the concept of electronic contracting is a famous movement that has revolutionized the remote execution of paperless contracts, which has promoted quick and smooth resolution, the concept is a relatively new aspect and is still in the early stages of development. This system is not free from legal problems that arise again and again, because the protection that can be attributed to physical contracts cannot be considered to exist in electronic contracts. The electronic contract involves the communication of all the general conditions by e-mail, which may lead to certain misunderstandings between the contracting parties. In this regard, personal communication is a much better way to ensure that the parties are on the same page with respect to the terms set out in the agreement. There are also specific issues related to the enforcement of electronic contracts, which are set out in the following sections. Similarly, Click Wrap agreements are enforceable in the United States.1 The Appellate Division of the New Jersey Superior Court ruled that the plaintiff enters into a valid and enforceable contract by clicking on the „I agree“ option and that the plaintiff is bound by the resulting agreement. One of the EC`s objectives is to make the EU the most competitive and dynamic knowledge-based economy in the world. Directive 2000/31/EC on electronic commerce was adopted by the European Commission to establish the legal framework for electronic commerce in the internal market. The Directive must remove the barriers that exist between citizens of the Member States when using cross-border online services.
It also aims to ensure legal certainty for participants in the EU. Free consent is an essential feature of a valid contract. In general, there is no room for negotiations on electronic contracting and it is usually a „take it or leave it“ transaction. Indian courts have heard cases in which the terms of the contract were negotiated between parties where one of the parties was in an unfair dominant position and annulled unfair contracts. The contractual clauses contain a specific clause indicating the place of performance and the courts of that place would have territorial jurisdiction to hear disputes arising from such contracts if they had been drafted in accordance with the Code of Criminal Procedure. Given the nature of electronic contracting, the question often arises as to which court would have territorial jurisdiction to hear disputes relating to electronic contracting. The Civil Procedure Code of 1908 („CPC“) defines how civil courts in India establish jurisdiction, based on two key principles: In addition, the Maharashtra E-Registration and Electronic Filing Rules 2013 facilitate online payment of stamp duties and registration fees. The rules also require the affixing of an electronic signature or biometric fingerprint, which makes electronic contracts more recognised and legally valid. An electronic contract is a contract created by the interaction of two or more persons by electronic means, such as e-mail, or by the interaction of two or more persons with an electronic agent, such as a computer virus.
Section 2(h) of the Contracts Act 1872 defines a contract as a legally binding agreement. The Contracts Act does not explicitly include electronic contracting (electronic contracting), but it also does not restrict them. One of the most important aspects of e-commerce is the e-contract. This is the sale of goods and services. The Information Technology (Amendment) Act 2008 replaced the term „digital signature“ with the term „electronic signature“. A digital signature is technology-specific and irreversibly unique to both the document and the signer. However, an electronic signature is technologically neutral and generic. There is no standard for electronic signatures. This can be a typed name or a scanned image of the handwritten signature.
The replacement of the term „digital signature“ with „electronic signature“ is intended to broaden the range of electronic contracting in an e-commerce world. It is important to note that other countries, such as the United States of America, have also enacted appropriate laws to provide that a signature cannot be deprived of legal effect simply because it is in electronic form or because it does not follow the prescribed technical procedure. With regard to the execution of electronic contracts, this may be concluded by e-mail after an offer from one party and acceptance after appropriate notification to the other party[ii]. After acceptance of the contractual conditions, they must be provided with an electronic signature. The Information Technology Act provides for two different types of electronic signatures that can lead to the performance of a legally binding contract. The first type of signature is the „digital signature“[iii], which was later called an „electronic signature“ by the 2008 amendment to the Information Technology Act. An electronic signature can be applied to anything, including the image of a handwritten or typed signature that is only related to the signer, so complete control of all the data used to create the signature rests with the signer. The second method is signing via the Aadhar card via third-party forums. With the increasing importance and value of e-contracting in India and around the world, different parties are constantly discovering and assessing the legal complexities surrounding them. The involvement of different service providers in an electronic contract transaction, such as a payment gateway, main website, bank or card verification. They are as follows: if these contracts are executed with digital signatures issued by authorized certification authorities, they have the advantage of being awarded under Indian evidence laws, or the person making claims under such a contract must prove them.
While digital signatures are often used for filing with authorities such as the commercial register, they are often not used by the parties for the electronic conclusion of contracts. A click-wrap agreement is enforceable under Indian law as long as the above principles of a contract are adhered to.