Abstract
Electronic Contracts also known as E-Contracts have transformed the landscape of commerce in the digital era as an ordinary mechanism for online transactions. E-contract offers convenience and efficiency to buy and sell of goods and services but they also possess threat to consumer in relation to their data privacy and its protection. An e-contract is a legally binding agreement formed electronically, recognized under Section 10A of the IT Act, 2000, even without physical documentation. It includes essentials like offer, acceptance, promise, consideration, agreement, and enforceability, similar to traditional contracts. However, e-contracts raise privacy concerns due to extensive personal data collection and limited consumer consent. AI further intensifies risks via biometric tracking, IoT, and data profiling, often without transparency. This can lead to unethical practices and breaches of user trust and legal compliance. The article will explore the intersection of e-contracts and data privacy, examining the challenges that the consumer face in the digital age and the lacunae in the legal frameworks to safeguard the digital rights of the consumer. The article highlights the need for robust legal mechanisms required to ensure the rights of consumer in the electronic transactions.
What is E-Contract
As per Section 2(h) of the Indian Contract Act, 1872 – An agreement which is enforceable by law is a contract. In short, a promisor and a promisee legally bind themselves to perform a reciprocal promises towards each other. An e-contract, or electronic contract, is a legally binding agreement formed and executed using electronic means. It’s a digital version of a traditional contract, using various online platforms and digital signatures to create an agreement. “Electronic Contract” or “E-Contract” has not been defined under Indian Contract Act, 1872 or Information Technology Act, 2000 but the validity of E-Contract has been mentioned under section 10A of the IT Act, 2000. It states that while forming a contract, its formation, offer, acceptance, communication of proposals, the revocation and acceptance of proposals, as the case maybe are expressed in electronic form or by means of an electronic record, such contract shall not be deemed to be unenforceable solely on the ground that such electronic form or means or means was used for this purpose. [1]
Essentials of E-Contract
- E-Offer – Offer generally means one person expresses another that he is willing to do or not to do something in order to get the other’s consent to do that act or abstinence.[2]
E.g. – There is a display of product online inviting the consumer to accept the offer given to them at a certain price
- E-Acceptance –When the person signifies his assent to the offer, the offer is said to be accepted.[3]
E.g. – The consumer accepts the offer displayed to them via online by selecting the goods and adding them to the cart or moves to the payment process.
- E-Promise – An offer when accepted becomes a promise.[4]
Offer + Acceptance = Promise
- E-Consideration – When the offerree does something at the desire of the offeror and both the parties fulfils their reciprocal promises to each other is called a consideration for the promise.[5]
Consumer promises to pay money (offeree’s consideration) to pay online or cash at delivery in exchange of the good that would be delivered by him at his doorstep which was ordered by him online (offeror’s consideration).
- E-Agreement – Every promise forming consideration to each other is an agreement.
Promise + Consideration = Agreement
Consumer ordered goods in exchange of payment of the price of the goods and the online platform promises to supply goods on receiving of the money forms an agreement (obligation to fulfill their promises)
- E-Contract – An agreement enforceable by law is a contract.
Agreement + Enforceability = Contract
Buying and selling of goods and services online (e-contracts), the transaction have been lawfully validated under section 10A of the IT Act, 2000.
[1]Section 10A, The Information Technology Act, 2000
[2]Section 2(a) of The Indian Contract Act, 1872
[3] Section 2(b) of The Indian Contract Act, 1872
[4] Section 2(b) of The Indian Contract Act, 1872
[5] Section 2(d) of The Indian Contract Act, 1872