E CONTRACT AND TRADITIONAL CONTRACT

Ø  E CONTRACT AND TRADITIONAL CONTRACT
BUSINESS LAW

BUSINESS LAW

Ø  MEANING OF E CONTRACT

•     E-CONTRACT IS ANY KIND OF CONTRACT FORMED IN THE COURSE OF E COMMERCE BY THE INTERACTION OF TWO OR MORE INDIVIDUALS USING ELECTRONIC MEANS SUCH AS E MAILS,THE INTERACTION OF AN INDIVIDUAL WITH AN ELECTRONIC AGENT,SUCH AS COMPUTER PROGRAM OR THE INTERACTION OF AT LEAST TWO ELECTRONIC AGENTS. THE UNIFORM COMPUTER INFORMATION TRANSACTION ACT PROVIDE RULES REGARDING THE FORMATION,GOVERNANCE AND BASIC TERMS OF AN E CONTRACT. TRADITIONAL CONTRACT PRINCIPLES AND REMEDIES ALSO APPLY TO E CONTRACTS.

•     RECOGNITION OF E CONTRACTS

•     SECTION 10 OF THE IT ACT GIVES LEGISLATIVE AUTHORITY TO E CONTRACTS. FOR ANY CONTRACT TO BE VALID SIGNATURES FROM BOTH THE PARTIES ARE REQUIRED. AN ELECTRONIC SIGNATURE COMES INTO PLAY.

•     2(P) OF THE INFORMATION TECHNOLOGY ACT,AUTHENTICATION OF ANY ELECTRONIC RECORD BY SUBSCRIBER BY MEANS OF THE ELECTRONIC TECHNIQUES SPECIFIED IN THE SECOND SCHEDULE AND IT INCLUDES A DIGITAL SIGNATURE.

•     ELECTRONIC SIGNATURE SERVES THE SAME PURPOSE AS HANDWRITTEN SIGNATURE.

•     FEATURES OF E CONTRACT

1.       NOT PAPER BASED AND ARE ELECTRONIC IN NATURE

2.       GENERALLY MADE FOR QUICK ENTERING/OR FOR THE CONVENIENCE

3.       BEST MADE WHEN THE PARTIES WHO LIVE IN DIFFERENT PARTS OF THE WORLD

4.       REQUIREMENT OF DIGITAL SIGNATURE

5.       MOST CONVENIENT METHOD

•     TWO PARTIES:

1.       ORIGINATOR:-THE PERSON WHO SENDS,GENERATES ,STORE OR TRANSMIT ANY ELECTRONIC MESSAGE DOES NOT INCLUDE INTERMEDIARY. WE CAN SAY THAT THE PERSON WHO INITIATES  THE PROCESS OF MAKING E CONTRACT

2.       AN ADDRESSEE: ACCORDING TO THE IT ACT 2008 IS A PERSON WHICH RECEIVES THE E CONTRACT MADE BY OTHER PARTY,

•     TYPES OF E CONTRACT

1.     SHRINK WRAP AGREEMENTS:-WHICH CAN BE READ AND ACCEPTED BY THE CONSUMER AFTER THE OPENING OF A PARTICULAR PRODUCT, INSTALLING SOFT WARE FROM CD INTO PC IS AN EXAMPLE

2.     CLICK WRAP AGREEMENT:-MOSTLY FOUND IN THE SOFTWARE INSTALLATION PROCESS.THE USER HAS TO CLICK  ACCEPT OR REJECT

3.       OTHER CONTRACTS

1.       EMPLOYMENT CONTRACT

2.       CONSULTANT AGREEMENTS

3.       CONTRACTOR AGREEMENT

4.       NON DISCLOSURE AGREEMENT

5.       SOFTWARE DEVELOPMENT AND LICENSING AGREEMENT

    

DIFFERENCE  

•     E -CONTRACT

•      

1.       ON LINE/COMPUTER GENERATED

2.       DIGITAL SIGNATURE

·         TRADITIONAL CONTRACT

1.       WRITTEN/ORAL

2.       HAND WRITTEN SIGNATURE

Ø  ESSENTIALS OF THE E CONTRACT

1.       AN OFFER

2.       THE OFFER NEEDS TO BE ACKNOWLEDGED

3.       PROCESSES AVAILABLE FOR ELECTRONIC CONTRACT:

a)       E –MAILS

b)       WEB SITE FORMS

c)        ON LINE AGREEMENT

4.       INTENTION TO CREATE LAWFUL RELATION

5.       THE PARTIES MUST BE ABLE TO CONTRACT

6.       CONSENT MUST BE FREE

7.       LAWFUL OBJECTIVE AND LAWFUL CONSIDERATION

8.       POSSIBILITY OF PERFORMANCE

Ø  THE DIFFERENCE IS E CONTRACTS ARE COMPUTER GENERATED AND IT IS THE CODE IT SELF EXPLAINS THE OBLIGATIONS OF THE PARTIES. SOME TIMES THE PARTIES TO E CONTRACT ARE STRANGERS ON THE INTERNET BOUND BY THIS DIGITALLY PRODUCED BUT BINDING AGREEMENT.