In recent times, the conventionally functioned models of business have become out-of-date and in many cases are not execution enough income to the owners or shareholders of the company. A usual example of such a situation in the business of newspaper in the United State of America wherein many of the noticeable newspaper have shut down or have lifted purely to the online medium. New and inventive models and type of business need to be invented and worked. Existence of e-contract in the market is accomplishing the need for innovativeness in the traditional business segments. Businesses, both existing and new are trying to create an online individuality and an e-contract stand ...view middle of the document...
It rules the way in which the requirements in a contract are implemented and codifies the effect of a breach of contractual provisions.
Electronic contracts (contracts that are not paper based but relatively in (electronic form) are born out of the need for speed, ease and efficiency. Imagine a contract that an Indian manufacturer and an American exporter wish to enter into. One selection would be that one party first draws up two copies of the contract, signs them and couriers them to the further, who in turn signs both copies and guides one copy back. The other option is that the two parties meet someplace and sign the contract. In the electronic age, the whole contract can be accomplished in seconds, with both parties simply fixing their digital signatures to an electronic copy of the contract. There is no need for behind couriers and additional travelling costs in such a situation.
There was primarily a fear between the legislatures to identify this modern technology, but now many countries have legislated laws to recognize electronic contracts. The conventional law involving to contracts is not satisfactory to address all the issues that arise in electronic contracts. The Information Technology Act describes some of the irregular issues that arise in the formation and verification of electronic contracts.
WHAT IS ELECTRONIC CONTRACT?
Contracts have become so common in daily life that most of the time we do not even recognize that we have entered into one. Right from hiring a taxi to buying airline tickets online, countless things in our daily lives are ruled by contracts.
The Indian Contract Act, 1872 governs the manner in which contracts are made and performed in India. It governs the way in which the requirements in a contract are implemented and codifies the effect of a breach of vowed provisions.
Within the outline of the Act, parties are free to contract on any terms they choose. Indian Contract Act comprehends of limiting factors subject to which contract may be entered into, executed and breach enforced. It only provides an outline of rules and regulations which govern creation and performance of contract. The rights and duties of parties and terms of agreement are definite by the contracting parties themselves. The court of law acts to enforce agreement, in case of default.
Electronic contracts (contracts that are not paper based but rather in electronic practise) are born out of the need for speed, suitability and efficiency. Imagine a contract that an Indian exporter and an American importer wish to enter into. One option would be that one party first pulls up two copies of the contract, signs them and couriers them to the other, who in turn signs both copies and couriers one copy back. The other option is that the two parties meet someplace and sign the contract.
In the electronic age, the whole contract can be completed in seconds, with both parties simply attaching their digital signatures to an electronic copy...