Although there has been great progress in adapting the legal framework to new technologies and the resulting transactions through electronic contracting, it can be said that the legal framework for electronic contracting in India is still in its infancy compared to other countries. Electronic contracts such as Click Wrap, Browse Wrap and Shrink Wrap must be explicitly recognised, and an effective framework for their regulation must be created, which therefore eliminates many ambiguities and blind spots that parties encounter when entering into contractual relationships through these types of agreements. In addition to traditional agreements, the Indian Contract Act of 1872 also recognized oral contracts, provided that they were concluded with the free consent of the contracting parties, for legal consideration and for a legitimate purpose and that they were not expressly annulled. Therefore, there is nothing in the Indian Contracts Act that prohibits the applicability of electronic agreements if they have all the essential characteristics of a valid contract. This is usually the license agreement that applies when purchasing software products. In the case of shrink film agreements, by opening the packaging of the software product, the conditions of access to this software product are imposed on the person who purchases it. Shrink packaging contracts are simply those accepted by the user at the time of installing the software from a CD-ROM, e.B. Nokia PC Suite. Sometimes additional conditions can only be met after the product has been loaded onto the computer, and if the buyer does not agree to these additional conditions, he has the option to return the software product. These contracts are the license agreement by which the terms of the contract are imposed on the contracting parties and are usually included on the plastic or in the manuals that accompany the software products that the consumer purchases. An agreement that is intended to bind two or more parties through the use of a website can be called a browsewrap agreement.
In the case of a browsewrap agreement, a regular user of a particular website agrees to the site`s terms of use and other continuous use policies. These are web agreements that require the user`s consent or consent by clicking the “I agree” or “I accept” or “Ok” button in the dialog box. In Clickwrap agreements, the user must in principle accept the terms of use of the respective software. Users who do not agree with the terms and conditions will not be able to use or purchase the product after cancellation or rejection. A person almost regularly witnesses web encapsulation agreements. The Terms of Use will be communicated to Users prior to their acceptance. For the agreement of an online shopping site, etc. As a general rule, most electronic contracts such as confidentiality agreements that are executed and scanned to the other party, as well as click-packing agreements on e-commerce websites that contain “electronic signatures”, may not be made enforceable due to the series of judgments read in this regard with stamp laws. Difficulties arise when courts refuse to implement the provisions of these electronic contracts, including the arbitration agreements contained therein. In a recent decision of the Bombay High Court, the Bombay High Court ruled that interim measures under section 9 of the Arbitration and Conciliation Act cannot be granted if the agreement giving rise to the dispute is subject to stamp duty but is not stamped or insufficiently stamped. Similarly, recent amendments to the Stamp Act (dated April 24, 2015) increased the maximum penalty for non-stamping to 4 times, compared to twice the stamp duty previously payable.
The Indian Contract Act of 1872 defines a contract as an agreement between two or more parties to buy/sell goods or services in exchange for valuable consideration. The essence of a valid contract is also some of the essential elements of an electronic contract: in a combined reading of national and international laws, it can be said that electronic agreements are valid and enforceable in court, but since the risk associated with electronic signatures is high, the parties always insist on wet signatures over physical agreements in high-stakes transactions. For fintech companies that have vigorously used the electronic mode of documentation and execution to prevent fraud or tampering, electronic signatures can be used with an extra layer of security, e.B. by verifying the electronic signature by sending an OTP to the registered mobile phone number or using the geographical location to capture the IP address. or any other mechanism to track the details of the electronic device from which the electronic signature was affixed. Such a two-step verification procedure also guarantees the authenticity of the signatory. One of the first steps in concluding a contract is to conclude an agreement between the contracting parties by offering and accepting it. Our other attributions to electronic agreements and fintech loans can be referenced here: Electronic contracts are non-paper and electronic contracts. These contracts are usually concluded for the speedy conclusion of a contract or for the convenience of the parties. They are best done between parties who live in 2 different parts of the world and need to make a deal.
A digital signature is enough to conclude a contract as a party, even if the two parties are several kilometers apart. In this sprawling world, the most convenient way is to sign a contract without being physically exhausted. The 2 main parties to an electronic contract are – The author and the recipient….