Contracts RP
Contracts RP
Contracts RP
Submitted to:
Prof. Parmila Dhiman
Assistant Professor for Contracts I At Kirit P. Mehta School of Law
Submitted by:
Mohit Jitendra Koli
Division C, C-003
SAP ID- 81012200427
FY BALLB(Hons).
Contents
1- Abstract…………………………………………………. 3
2- Introduction…………………………………………….. 4
3- Research Objectives……………………………………. 5
4- Literature Review………………………………………. 5
5- Research Methodology…………………………………. 6
6- Chapters………………………………………………… 7
7.1- Introduction
7.2- Historical background
7.3Legal Provisions
7- Conclusion………………………………………………. 14
8- References….…………………………………………….14
1. Abstract
1.1 Keywords-
Contracts are the cornerstone of the business and, by extension, the corporate world;
they govern everything from the sale of chocolate to the merger of corporations, from
the rental of a home to the hiring of staff. In sum, the entire commercial world (and
our day-to-day existence as we know it) would grind to a halt without the Law of
Contracts to ensure that the agreements we make with others are honoured. Contract
Law is also the foundation for the study of a number of other areas that we will
encounter during this programme; Corporate Laws would be incomprehensible if we
did not understand the fundamentals of Contract Law; Insurance Law would be
worthless if not for Contract Law.
Contracts in India are governed by the Indian Contract Act, of 1872 ("the Contract
Act"), but it is not an exhaustive regulation. Its purpose is to "define and change
specific contractual provisions of the law" (Preamble to the Contract Act). When the
Contract Act addresses a specific topic, its coverage is thorough. If it does not, and
there are no alternative sources in Indian law, the courts may refer to English court
decisions.
Contract Law is primarily concerned with the enforcement of agreements between
two or more parties. Courts do not enforce all pledges. For the purpose of enforcing a
set of promises, the courts will examine the presence of certain important
components. A court will deem the agreement to be a contract if all of these
characteristics are present.
Together, the internet computer and the data network have changed the field of
information technology. The Internet is a computer network that lets people
communicate and store data. In general, information technology touched all of the
ways that data is controlled and used to make information. Besides this, it also
includes linking computers and databases. Sharing and taking in information from
each other. Information technology is always changing. The way people live changed
in a big way. Developments in the field of information technology have a big impact
on a country's economy and the way people live. One of their most important areas
when it comes to IT is Has had a very big effect on business and trade. Information
technology has come up with a unique way for businesses to connect with clients,
vendors, associates, and the people who started the business. An e-contract is a
business improvement that uses computers to help with and automate a contract
between two businesses. It's the newest way to control and help online business
relationships between business partners, and it's formed to do just that. A software
process did, showed, managed, and kept an eye on what was going on.
The digital commerce business is now completely dominated by electronic
agreements. Standardized electronic agreements have proliferated in business-to-
business and business-to-consumer transactions, whether used to sell products or
services or just to identify relationships. Along with their physical counterparts,
The key concern or remark that the author made while conducting research for the
paper was the ambiguity and the court's discretion regarding how e-contracts and
browse-wrap contracts were dealt with quite differently in various locations.
3. Research objective
The purpose of the research work was to investigate the various sorts of r contracts and
their legal history. The transition from paper contracts to electronic contracts and the
legality and issues with browse-wrap agreements in electronic contracts.
4. Review of Literature
1. Title- “Transparency and the online consumer” Author- Caterina Gardiner
The main objective of the paper was to study the details of consumers' online
transaction issues with standard forms. Online reasonable ignorance and bias are
discussed. The UCTD transparency principle is applied to online contracting
difficulties. Contract formulation, online terms length and complexity, and contract
5. Research Methodology
The author researched online sources and databases to answer the research question and
consulted article references. The author utilised various secondary data resources, such as
PubMed, Manupatra, Hein Online, AIR online, and SCC online, to research legal issues and
related themes. The author discovered a dispersed variety of published articles and case la
Introduction
First, we will take a look at different types of e-contracts that are existing right now
1. Click Wrap Agreement: A "Click-Agreements" is a copy of the shrink-wrap
licencing agreements that can be read on a computer. It happens in contracts that
are easy to understand. It says when the buyer and buyer click on the "I Agree"
button on the website to buy back or buy and upload the software. Individual
products will be seen as a sign that the terms and conditions for the sale of the
contract have been accepted. Customers always have the option to go back to the
software if they want to change their name, and they aren't likely to get their
money back. Most of the time, these kinds of contracts are on a CDROM or in a
piece of computer software. The most common way to find these kinds of
contracts is on a CDROM. Some kinds of contracts can't be changed, so there's
no way to negotiate with them. Customers of this kind of software only have two
options: they can either agree to the end user licence agreement and use the
software, or they can say no and not use it.
3. Browse Wrap Agreement- The user does not have to agree to these terms and
conditions in order to use the service. When you use the website, you
automatically agree to the terms of the agreement. At the bottom of the website,
you can find the terms and conditions of these kinds of agreements.
Essential of E-contracts
1. Offer- Section 2 of the Indian Contract Act of 1872 defines an offer as a
willingness to enter into a legally enforceable contract (a). When someone
responds to an email or fills out an online form, he is making an offer for a
specific item. The receiving party can accept or reject the offer by direct
confirmation or other means. Unless accepted, an invitation to offer does not
create a legally binding contract. In Kleinwort Benson v. Malaysia Mining
Company Berhad, MMCB said that their policy is to ensure that the subsidiary
2. Acceptance- Accepting the offer creates an agreement. This rule accepts the offer
when posted. Hence, the proposer's message of acceptance is complete when it is
transmitted to him, whereas the acceptors is complete when the proposer knows
it. munib Lalman Shukla sued Gauri Dutt. The plaintiff helped find the
defendant's missing nephew. Despite finding the youngster whose uncle had
promised Rs 501 to anyone who discovered him. The muni was refused the
award since he learned about the youngster after discovering him. So, the
addressee must acknowledge the offer. The addressee can electronically accept
such a proposition by clicking "I agree" or "I accept." Email, website forms, and
online agreements can accept and offer. Section 12 of the Information
Technology Act, 2000 states that the addressee may acknowledge receipt of
electronic records by any communication method to notify the creator.
3. Intention to create legal relations- For a valid contract, the intention of both
parties to create a legal relationship is very necessary. In the case of online
contracts, the existence of intention is normally automatic.
Contracts based on modern technologies, such as email contracts and other contracts
through electronic media & devices, are incompatible with the current Law of
Contract. Presently, there is no legislation to govern contracts based on computer
and Internet usage, notwithstanding their widespread use. The legislature perceived a
great need for a law governing electronic device-based contracts. A poll was
performed under the direction of Justice Fazal Ali, who advocated strenuously for a
separate law governing electronic gadgets. He refused to amend the current law of
contracts to encompass technological gadgets. It was also highlighted that contracts
Legal Provisions
1. E-contracts under the Information Technology Act, of 2000-
Because of the above parts of the IT Act, Indian courts have, on a number of
occasions, upheld the validity of contracts that were made electronically.
1. "In the case of Trimex International FZE Ltd. Dubai vs. Vedanta Aluminium
Ltd., where the parties communicated their offer and acceptance via email
instead of signed documents, the Supreme Court of India ruled that once a
contract is made verbally or in writing, the fact that a formal contract must be
written and signed by the parties does not change the contract.
2. “The High Court of Madras applied the provisions of the IT Act to an e-
auction in Tamil Nadu Organic Private Ltd. vs. State Bank of India, finding
that contractual duties might arise through electronic methods and that such
contracts might be enforced under the law. Section 10A of the IT Act certifies
contracts established with electronic means and Section 10B of the IT Act
permits the use of electronic records and electronic methods for contract
conclusion as long as the contract complies with the Indian Contract Act, of
1872.
So, when it comes to signing contracts, electronic signatures are seen as the same
as traditional wet signatures, and Section 5 of the Information Technology Act
says that they are legal. In Section 5, it says:
Explanation- For the purpose of this section, “signed”, with its grammatical
variations and cognate expressions, shall, concerning a person, mean affixing his
Admissibility of E-contracts
The Indian Evidence Act of 1872 (Evidence Act) was also amended to conform to
the IT Act's provision of electronic document execution. Under the Evidence Act,
electronic records, electronic agreements, and electronic contracts are admissible as
evidence. In the State of Punjab et al. v. Amritsar Beverages Ltd. et al., the Supreme
Court of India ruled that Section 63 of the Evidence Act governs the admissibility of
computer outputs on various media, including paper, optical, and magnetic forms. In
addition, Section 65-B of the Evidence Act describes how electronic documents are
to be presented as evidence. According to Section 65-B of the Evidence Act, any
information contained in a computer-generated electronic record that is printed,
stored, or copied is presumed to be admissible as evidence in any proceeding
without the need for additional verification of the original. Section 65-B of the
Evidence Act imposes a variety of limits on the admissibility of such evidence. The
verification procedures for digital signatures are specified in Section 73A." The
Evidence Act's Sections 85A and 85B provide a presumption in favour of the
authenticity of digital signatures in electronic contracts, the secure status of
electronic documents, and digital signature certifications unless the reverse is
demonstrated. In the case of Sudarshan Cargo Pvt. Ltd. v. Techvac Engineering Pvt.
Ltd., the court noted that "The Information Technology Act, 2000 provides legal
recognition of transactions conducted through electronic communication that involve
the use of alternatives to paper-based methods of communication and information
storage." Section 4 of the act states that if the information is required to be in
writing, typewritten, or printed form, the requirement is deemed to be met if the
material is rendered or made available in an electronic format and may be utilised
for future reference. In addition, the Evidence Act of 1872 was revised by this
measure."
These reviewed case laws demonstrate how the courts have taken a few measures to
better comprehend the laws that govern browse-wrap agreements. The initial
requirement of notification is followed by a determination of whether the terms were
Because a user who completes a click-wrap has both actual notices of the terms and
has agreed to them, the provisions of a click-wrap agreement are generally
enforceable. Unlike browse-wrap, which requires no affirmative action by the
website user to agree to the terms of a contract other than his or her use of the
website, browse-wrap agreements can only be enforced when the user has actual
knowledge of the agreement or when the website makes the terms and conditions so
prominent that the website is deemed to put a prudent person on inquiry notice. The
legitimacy of the browse-wrap agreement depends on the evaluation of the website's
layout and content. It is explained that a browse-wrap agreement is enforceable if the
user confesses that he was fully aware of the imposed requirements. Thus, the
browsewrap agreement must be adequately visible and accessible, and it must
inform the consumer that continuing use of the webpage will be construed as an
indication of the user's willingness to agree to the applicable terms of service.
Conclusions/ Findings
Cases in the U.S. and Canada show that the website owners are the only ones who
are responsible for making sure that users get enough information and notice. But an
advanced framework is needed to regulate browse-wrap agreements. With the speed
at which technology is changing, it is important to protect consumers from being
forced to sign these kinds of e-contracts in the form of "browse-wrap" agreements in
References
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