ELECTRONIC CONTRACTS ECommerce Ecommerce in simple terms refers

ELECTRONIC CONTRACTS

E-Commerce E-commerce in simple terms refers to the buying and selling of both products and services through the internet. This essentially includes all commercial transactions that are based on electronic processing and transmission of data including sound, text and images. It refers to all commercial activities done on computer networks and internet. The said electronic commerce includes within its ambit not just goods but also services. Electronic commerce is a term for any type of business or commercial transaction that involves the transfer of information across the internet and covers a range of different types of businesses, from consumer based retail sites, through auction or music sites, to business exchanges and trading goods and services between corporations

E-Contracts An e-contract refers to the computerized facilitation of a contract in a crossorganizational business progression. It is an incredibly new mechanism in India and facilitates electronic trading relationships between parties. In essence, it is modelled, executed, specified, controlled, enacted, monitored and either fully or partially deployed by a software system. Apart from being on an electronic, online portal, e-contracts are in essence, similar to a paper-based contract. Vendors present their prices, products and required terms to prospective buyers while vendees negotiate prices and terms when possible, place order and make payments. The vendors then deliver the purchased products and services to the vendees. Simply it can be stated as, contracts entered into electronically are referred to as electronic contracts.

Essentials All fundamental principles that apply to contract law also apply to all contracts formed electronically or orally. However, as of today, the essentials and elements of e-contracts remain the same as those provided for paper-based contracts. 1. Offer - An offer is required to be made so as to form the basis of an e-contract. The offer need not be made on a one-to-one basis. The consumer browses through the available goods and services displayed on the retailer’s website and then chooses what he would like to purchase. 2. Acceptance - The offer produced needs to be accepted. Acceptance is usually undertaken by the vendor after the offer is made by the consumer in response to the invitation. The offer also stands revocable at any point before the acceptance is made. 3. Lawful Consideration - Any agreement that is formed electronically must have lawful consideration to be enforceable by law. 4. Competency - The parties to the contract must be lawfully competent to enter into it. Agreements made by minors, lunatics, insolvents et cetera, are void

5. Free consent - There must not exit any subversion of the will of any involved party to enter into such contract. It must be free and void of coercion, misrepresentation, undue influence or fraud. The parties entering into a contract must agree to the same things in the same sense. 6. Lawful Object - The object of the contract must be lawful for it to be valid. The object of the contract should not be forbidden by law or defeats the provisions of law in any manner. An agreement selling any kind of pornography or narcotic drugs would, therefore, be void. A contract that is fraudulent , causes injury to any person/property, is immoral or opposed to public policy is void. 7. Certainty and possibility of legal performance - A valid contract must not have vague, uncertain or ambiguous terms. Further, there must exist a possibility to perform the contract. A contract that is impossible to perform is void. Similarly, an agreement that is not certain in its meaning is also void.

Conclusions of e-contracts While the fundamental essentials of a paper-based contract apply to the econtracts, the methods to conclude the e-contract are also borrowed from the Indian Contract Law and are similar to the paper-based contracts. 1. Contract Formation through Electronic Communications Contracts formed over e-mails etc. are concluded by the exchange of text documents via e-communications such as e-mail. This way, both offers and acceptances can be easily exchanged and settled. 2. By Acceptance of Orders Placed on E-Commerce Websites When these products on e-commerce websites are purchased, the vendor offers the goods through the website. The consumer places an order by completing and transmitting the order form the website. The merchandise may either be physically delivered (like clothes) or delivered electronically (like e-tickets). 3. Online Agreements Users may sometime be required to accept an online agreement in order to get the services while installing or signing up on a website.

4. Electronic Data Interchange – This refers to contracts used in trade transactions which enable the transfer of data from one computer to another so as to make each transaction a trading cycle processed with no paperwork at all. The data here is formatted and implemented directly by the receiving computer. EDI is used to transmit standard purchase orders, acceptances, invoices and other records. As a consequence, it reduces paperwork and reduces the possibilities of human error. In this type of contract, the exchange of information and completion of the contract is between two computers as opposed to a computer and an individual. 5. Through Electronic Agents Computer users can now instruct their computers to carry out transactions robotically. Electronic agents are programmed with the authority of both the purchaser and the supplier. These electronic agents usually exhibit characteristics which are very close to human characteristics and can assist human beings with routine tasks.