Electronic contracts are paperless agreements born out of the need for simplicity, speed and efficiency. It is an agreement between two parties that can be reached in minutes by simply affixing their digital signatures to an electronic copy of a contract. Contracts, as we all know, are subject to the Indian Contracts Act of 1872, but electronic contracting is also subject to the Information Technology Act of 2000. Section 4 of the Act refers to the legal recognition of electronic documents, because if a law provides that the information or other matters must be in written or typed or printed form, this requirement, regardless of what is contained in this Act, is deemed to be fulfilled if such information or questions – (a) are provided or made available in electronic form; and (b) are accessible for future reference. It is apparent from Article 206 of the UCITA that the legislature recognised that a contract may be concluded by the interaction of the two electronic agents. The Indian Contract Act of 1857 has not yet been amended to explicitly include the scope of an electronic agreement or click-wrap agreement. Facts: Appellant Brower et al. purchased computer and software products from Gateway 2000 by mail or telephone. The terms of the contract have been included in the scope of the delivery. This note is specified in a field that covers the width of the page in characters slightly larger than the document reminder. And it has been written that if you keep computers for more than 30 days, it means that you accept the offer. And when a dispute arises, it is resolved through arbitration. In today`s technologically advanced world, it is unlikely that an individual will encounter a point in the processing of computers where he has not had to agree with certain terms.
As with surfing the Internet, this is usually done by clicking on an icon such as “I agree” and similar to installing software, we tear up the CD package and use it to be considered an acceptance of the conditions set out in the package. As tiny as it may seem to a layman, these actions are of paramount importance because they result in a valid enforceable contract and the conditions that we do not know when entering into a contract can be strictly imposed on us. A typical electronic contract would be executed virtually, with the parties accepting the terms electronically and affixing their electronic signatures. Stamp duty on such an electronic contract should be paid before or at the time of performance in accordance with section 17 of the Stamp Act. A common type of online agreement that has emerged with the advent of internet contracts is the click wrap agreement. In this type of agreement, a message is sent to the user on his screen that requires the user`s consent to the terms of the agreement by clicking on the icon. The terms of the agreement are immediately visible on the computer screen with the inscription “I accept” or something similar. In the case of an online contract, the seller who intends to sell his products presents his products, the prices and the conditions of purchase of these products to potential buyers.
In return, buyers who are interested in purchasing the products consider or click on the “I accept” or “Click to accept” option to indicate acceptance of the terms and conditions presented by the seller, or they can sign electronically. Once the conditions have been accepted and the payment has been made, the transaction can be completed. Communication is always between two computers via servers. Thus, although electronic contracts are valid under the Information Technology Act, contracts for the sale or transfer of real property or interests in such real property must always be on paper. A click-wrap agreement is usually found as part of the software package installation process. It is also known as a “click-through” agreement or click-wrap license. It is a take-it-or-leave-it contract that has no bargaining power. If a customer likes a product and wants to buy it or use their service, they click “I accept” or “Ok” and if they refuse it, they will not be able to buy that product or use that service. Click-wrap agreements can be of the following types: Click-wrap assertions allow online companies to conclude contracts with different customers without agreeing exclusively with them. In addition, Click-wrap allows companies to protect electronic trademarks and merge additional provisions that are not provided for by the current digital law.
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. One of these cases expected, without clarification, that the shrink packaging permit in question would be, on the whole, a gripping contract that could only be enforceable if the acquisition of a state law – which made these approval agreements expressly enforceable – was essential law not appropriate by government law. Thus, the next time you come across these electronic contracts before clicking on the “I agree” icon, it will be uninteresting or hastily tear the packaging of the software CD that is least interested in the conditions entered on it “Think Twice”. These are all valid contracts and you could be held responsible for the terms set out therein. While many companies, particularly in the IT or e-commerce sectors, are open to the idea of electronic contracts and offer click-wrap contracts, sometimes without analyzing their applicability, it remains to be seen how the Indian judiciary would react to these contracts in a process about their admissibility and when lawmakers will recognize the need to fill this void. Every day, we carry out several activities without taking into account the legal relationships we have, without recognizing or recognizing that they are contracts in one form or another. And in the case of shrink film, it is assumed that the user has accepted the terms and conditions once the package is opened. This is a form of license agreement on the buyer when they purchase software. A click-wrap assertion is a type of agreement that is widely used in programming licenses and online exchanges where a customer must agree to the terms and conditions before using the article or administration. In the present case, the court concluded that the contract is concluded not only with the placing of a telephone order, but also with the consumer`s decision to keep the goods specified in the terms of the contract for more than thirty days.
Although the parties did not have the same bargaining power, consumers had the opportunity to shop elsewhere and could have the opportunity to return the goods. The fact that the consumer does not read or understand a certain part is irrelevant. It states very well that electronic records are legally recognized by the Information Technology Act 2000. The former Indian Contracts Act, 1872 is complemented in this context by online transaction as an accepted and legally recognized form of contract. The term “shrink wrap” describes the shrink wrap plastic packaging that covers software boxes, or the terms and conditions that accompany the products upon delivery. .