There is always a question on the contract and communication formed via emails. Many people think an email to be an informal way of communication but as a result, the offers and counter-offers are exchanged via email for negotiation purpose only.

An email contract is can be enforceable even if it is not printed out of paper. The email and contract do not only around The Indian Contract Act 1872 but also the Sec 10 of Indian Technology Act 2000 which states the validity of electronic contracts. This section was inserted in 2008 through an amendment.

Sec 10 of Indian Technology Act says that,

 

"Where in a contract formation, the communication of proposals, the acceptance of proposals, the revocation of proposals and acceptances, as the case may be, 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 was used for that purpose.”

 

A valid contract has 4 elements-

 

Agreement- Wherever there is an enforceable contract, there is an agreement between two parties and there are an offer and acceptance.

 

Contractual capacity- The legal capacity to form a binding contract.

 

Consideration- To enforce any legal contract there is an element required which is a consideration and the agreement should be supported by something of legal value given in exchange for the promise.

 

Lawful object- The object of the contract should be within the boundaries of law and if the contract is illegal then it will be void and enforceable by law.

 

Is Electronic Contracts is legally valid?

 

All the elements to create a contract is present but the court has not yet decided that whether the contract is valid when sent or when received, but an email or web contracts are valid and enforceable by law. There are many ways of electronic contract like Faxes or telex communication but they are valid only when they are received.

Though emails have trapped some communication and have many processes and stages. Hence, where proposal and acceptance are made by instantaneous means of communications like the telephone, telex etc., and the postal rule does not apply and the contract is made where the acceptance is received.

Indian courts acknowledge the extensive inclination to e-commerce on the internet.  Any prevailing legal judicial goal to appear to be legally valid act would maintain the legality even if they are performed online and is satisfying all the elements of a valid contract.