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ARTICLE · 13 OCTOBER 2020

Understanding E-Contracts

The term 'contract' is defined under Section 2(h) of the Contract Act, 1872 (Contract Act) as an agreement enforceable by law. Although, Contract Act does not specifically provide for electronic...

IndiaCorporate/Commercial Law

The term 'contract' is defined under Section 2(h) of the Contract Act, 1872 (Contract Act) as an agreement enforceable by law. Although, Contract Act does not specifically provide for electronic contracts (e-contracts), it does not prohibit them per se. Like any other form of contract, an e-contract is also primarily governed by provisions of section 10 of Contract Act. The essential elements required for validating an e-contract set out under Contract Act are as follows:

  • Lawful offer and acceptance
  • Lawful object
  • Lawful consideration
  • Free consent
  • Parties to be competent to contract
  • Intention of parties to create legal relationship
  • Not expressly declared to be void, it will meet the test as a valid and binding contract

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