online contracts law insider in


By Kusumkali Mitra-


With the ongoing technological advancements, there is a huge change in the way of life of individuals. Hence, communication is not any more confined inside its topographical cutoff points and data is moved much generally and rapidly than at any other time. Electronic commerce is a method for the exchange of business electronically and is related with the purchasing and selling of data, items and administrations over digital correspondence systems. 

With the rise and consistent development of e-commerce, there is a steep rise in the utilization of e-contracts. However the idea of e-contract is as yet not unclouded. The law of agreement in India gives a legal acknowledgment to the basic authoritative principle. The Indian Contract Act, 1872 doesn’t set out the rights and obligations which the law will implement yet it manages the limiting principles, subject to which parties may make rights and obligations for themselves.


With the utilization of web and electronic business, online contracts have expected significance fundamentally as far as reach and variety. Online contract or an electronic contract is an understanding demonstrated, marked and executed electronically over web. An online contract is fundamentally the same as and is drafted in a similar way to a conventional paper-based contract is drafted. If there should arise an occurrence of an online contract, the dealer who plans to sell their items, present their items, costs and terms for purchasing such items to the purchasers. Thusly, the purchasers who are keen on purchasing the items either consider or click on the ‘I Agree’ for demonstrating the acknowledgment of the terms introduced by the seller. When the terms are acknowledged and the payment is made, the transaction can be finished.

Online contract can be differentiated into three kinds- browser contracts, shrink wrap contracts and clickwrap contracts. Different sorts of online contracts employment contract, contractor agreement, consultant agreement, Sale re-sale and distributor agreements, non-disclosure agreements, software development and licensing agreements, source code escrow agreements. In spite of the fact that these online agreements are seen in our regular daily existence, most of us don’t know about the lawful complexities associated with it; the utilization of online contract faces numerous specialized and lawful difficulties.


Under the provisions of the Information Technology Act, 2000 especially Section 10-A, an electronic contract is substantial and enforceable.

The main basic prerequisite to approve an electronic contract is consistence with the essential pre-necessities given under the Indian Contract Act, 1872.

Likewise, the courts in India give due respect to electronic contracts under the arrangements of the Indian Evidence Act, 1872.


  1. Browse Wrap Agreement

This agreement is considered as a browse wrap agreement that shall be binding upon the contracting party with the aid of the use of the site. Those include the consumer policies and expressions of administration of sites along with Flipkart or E-bay and are looking for a “term of use”, a “person settlement” or “terms of service”, which can be utilized in light of the fact that the hyperlinks at the corner or rear of the website.

  • Shrink Wrap Contracts

These agreements are the license agreement by means of which the terms and conditions of the agreement are implemented upon the contracting parties and are usually present on the plastic or in manuals going with the product program stock which the clients purchase.

  • Click Wrap Agreements

Those understandings require the individual to give his consent to the terms and circumstances which are known as end person settlement and oversee the authorized use of the product program by clicking “ok” or “I agree” button. There are positive kinds of things which ensure that the expressions of the settlement are official upon the contracting parties.


The Indian Contract Act 1872 has perceived the customary understandings which comprise of the oral contracts made by the free assent of the contracting parties who can contract for legal consideration with a legal object and are not explicitly announced to be void. In this manner, there might be no arrangement on this Act which disallows the enforceability of electronic contracts gave that the vital components of the legitimate settlement must be found in such contracts. The free assent is considered as the primary attributes of an authentic contract. Ordinarily, there might be no degree for arrangement on E-contracts.


Information Technology Act, 2000

  • Section 10 A gives the legitimate portrayal to legitimateness and implementation of E-contracts under IT act 2000. It gives that in contract formation, correspondence of proposal, the disavowal of the proposal and acknowledgment as the case are communicated in electronic structure or by electronic record.
  • Section 4 states that Legal Recognition of electronic records.- Where any law recognition of electronic records.- where any law presents that statistics or another count number will be in writing or within the typewritten or published shape, then, however anything contained in such regulation, such requirement shall be deemed to were glad if such records or remember is

(a) rendered or made available in an digital form; and

(b) reachable on the way to be usable for a next reference.

  • Section 65-Tampering with pc documents that are required to be kept by regulation is punishable by using up to three years in prison with related fines.
  • Section 66 -Hacking right into a laptop device. A hack is constituted by an individual with harmful rationale deleting or changing records pc information. Punishable by up to 3 years and associated fines.
  • Sec 66B- Receiving a stolen laptop or verbal exchange device is punishable b up to a few years in prison with associated fines.
  • Sec 66C- the use of some other individual’s password or digital signature. Punishable up to 3 years with associated fines.
  • Sec 66D- cheating thru an electronic communication or pc resource. Punishable by way of up to three years in prison and associated fines


1. Harpal singh chota vs State of Punjab – In this case the Supreme Court have repeated the case that any electronic record in type of secondary Evidence can’t be conceded as Evidence except if an authentication of proof under the section 65B of Indian Evidence Act.

2. Hyderabad E-tender plan hacking case – In this instance hackers have hacked the whole E-tender plans and supposedly charged Rs.15000 per tender data to the government of Telangana.

3. Anwar Basheer vs P.K. Basheer– Here the apex Court reconsidered the law on electronic evidence. The Judgment will affect the way wherein wiretapes are brought before the Court.

4. Casio India Co. Ltd vs Ashita Teleservices Pvt Ltd –In this case the Delhi High Court held that once the site is accessed in Delhi it is sufficient to include the jurisdiction.

5. In the case of Mehta vj pereira fernandes, there was an appeal against an district court judgment which granted the accused organization with the whole of 25000 euro. The sum was granted supposedly from the sum emerged from the email send by the Mehta jpf’s solicito.


An online contract is planned and established with an intent to give security to online exchanges. It is framed to check cheats to advance and assemble trust in real online exchanges and to give a lawful status to digital contract. Online contract is a much proficient idea in light of a legitimate concern for time and cash in contrast with the customary strategy for paper and composing contract. In any case, to keep a pace with the quick headway of the innovation, a different enactment concerning electronic or online contract must be enacted in India.