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Updated: Feb 20, 2022


Electronic agreements or e-contracts are only arrangements entered in electronic structure, frequently through a product system, instead of traditional agreements recorded on paper and endorsed in ink. Indian laws acknowledge various types of e-contracts, for example, email moves, click wrap contracts, shrink wrap contracts, and so forth. The test and legitimacy of an e-contract in India actually need to cover the pre-requirements of the agreement as set out in the Indian Contract Act, 1872.

The Information Technology Act 2000[1] additionally administers and perceives the arrangement and execution of the electronic agreements. The majority of the associations these days, lead business on the web and their legitimate arrangements are likewise made online generally, particularly after the COVID-19 pandemic there has been an unexpected ascent in the development of e-contracts. However, since it’s another idea, there are sure lawful issues that are looked at by many, a portion of these are examined underneath.

Laws Governing Electronic-Contracts

The essential state of an agreement being made that is an offer and acknowledgment is represented by the Indian Contract Act, 1872. As per this, electronic agreements are just about as legitimate as composed agreements yet there is one condition that they need to satisfy, that is they ought to have every one of the fundamentals of a substantial agreement. Aside from this, the arrangements of the Information Technology Act, 2000 give legitimate acknowledgment to an Electronic Contract.

This can be derived from Section 10-An of the Act which states “Where in an agreement development, the correspondence of proposition, the acknowledgment of recommendations, the repudiation of recommendations and acknowledgments, all things considered, are communicated in electronic structure or through an electronic record, such agreement will not be considered to be unenforceable exclusively on the ground that such electronic structure or means was utilized for that reason.”

Different Forms of Electronic Contracts in India

There are different courses through which an individual can enter into an electronic agreement in India. The first and the most widely recognized structure is through a trade of email, where there is an offer made and another gathering acknowledges it. The subsequent structure is that of online arrangements which comprise of:

Browse Wrap Agreement:

This is the most essential sort of arrangement which we all see practically day by day, when we utilize a site which pop ups the message that “By continuing your use of these services, you agree to the terms and conditions” or “By signing up I agree to the terms of use.”

Shrink Wrap Agreement:

Shrink wrap agreements are essentially licensing arrangements for software. The name gets from the shrink wrap packaging of the CD-ROMs by which programming used to be dispersed. These days, we see this kind of arrangement prior to introducing a product.

Click Wrap Agreement:

As the name proposes these are the sort of understanding for which we need to click in a mark box typically to proceed with the utilization of a site or an application. It gives us the terms and conditions which we need to follow and acknowledge before additional use of the application or site.

Legal Issues Involved in Electronic Contracts

Above all else, electronic agreements can take numerous structures. For instance, an email discussion with a reasonable offer and acknowledgment might be viewed as an official agreement. This implies that the particulars of the agreement are set out in email correspondences, messages offers made, and so on between the client and the provider. It’s excessive for an electronic agreement to contain numerous components, simply an offer and acknowledgment can be taken to the court for lawful cases.

Aside from this, there are numerous different elements like we can’t see the individual truly if the electronic-contract is made sitting in two unique states, which state’s law will administer the if any lawful issue emerges, there are sure impediments of an electronic-contracts, if there is through and through freedom or not, the advanced mark was finished by the individual with whom the understanding is to be made or not as we can’t see the other party while shaping an e-contract.

Place of Formation an Electronic-Contract & the Area of Jurisdiction in Case of Breach

As indicated by Section 13(3) of the IT Act, an electronic record is considered to be dispatched at where the originator has his business environment and is considered to be gotten at where the recipient has his business environment besides as in any case consented to between the originator and the recipient.

In the customary type of understanding, where both the gatherings structure an agreement that spot is viewed as space forward, as while shaping a conventional type of agreement, the gatherings should be in a similar spot. Though, the electronic agreement can be made while sitting in various urban communities and states.

In the event that a lawful issue emerges or there is a break of an agreement it is up to the gatherings that possibly they can pick one of the states from where they created the agreement OR they can pick a third city for the locale. In any case, there is one special case for this standard which is given in CPC, giving just two potential spots of purviews to initiate a case.

Admissibility of Electronic-Contracts as Evidence in Courts

The Indian Evidence Act, 1872 was additionally changed to incorporate different sorts of electronic agreements. After the alteration as per the Evidence Act, electronic records, electronic arrangements, and electronic agreements are allowable in proof.

On account of State of Punjab and Ors. Versus Amritsar Beverages Ltd. Also, Ors., the Supreme Court noticed Section 63 of the Indian Evidence Act makes different media like paper, optical or attractive structures acceptable in courts. Area 65-B of the Indian Evidence Act likewise gives data contained in advanced structure in the electronic record is acceptable in court without obtaining the first archive. However, the suitability of the equivalent is dependent upon different conditions recommended under segment 65-B of the Evidence Act.


Despite the fact that the electronic agreements are the sort of agreements that are being utilized the most these days, there are numerous escape clauses and issues identified with it which even after such countless corrections and acts are not settled. As I would like to think there ought to be a few laws that administer on if the agreements were not endorsed with free assent or if the mark which is additionally in electronic structure was not done by the signatory, what ought to be done, as an of there are no such arrangements which give us this sort of issue.

Additionally, as there is further headway of advancements with time, the laws will become excess and more issues will emerge. They need to be updated every now and then to stay aware of such progressions. The IT Act furnishes us with different laws however there are numerous provisos present which need to be fixed. With the lockdowns and abrupt upsurge in the arrangement of electronic agreements, I earnestly trust that the administration investigates these little escape clauses and work on them.


The bill was passed in the budget session of 2000 and signed by President K. R. Narayanan on 9 May 2000. The bill was finalized by a group of officials headed by then Minister of Information Technology Pramod Mahajan

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