E-CONTRACT

E-contract is the way to draft and negotiate successful contracts for the consumers and sellers running e-commerce. It is designed to assist people in forming and implementing commercial agreements within e-business. It consists of a contractual model for the sale of goods and services to the customers. 

There are three types of e-contracts:

1. Browse Wrap Agreement: A browsewrap agreement is an agreement which is binding on two or more parties through the use of the website. Even an ordinary person who will visit that website have to accept the Terms and Conditions of that website and other policies for continuous use of that website in case of a browsewrap agreement. We usually witness such type of contracts in our day to day life. For example, whenever we install any app from play store, we need to accept terms and conditions.
2. Shrink Wrap Agreement: Shrink Wrap contracts are usually licensing agreement for software purchases. In the case of such type of contracts, the terms and conditions for access to such programming items will be implemented by the individual getting it, with the inception of the bundling of the product item. Tightening-up agreements are simply the agreements that are accepted by users, for instance, Nokia pc-suite, at time of installing the software on a CD-ROM. Sometimes, after installing that product on your PC, extra conditions may pop up and then, if the buyer doesn’t want to accept them he can return that software. The Shrink-Wrap Agreement assures by absolving the item producer of any infringement of copyright or intellectual property rights as soon as the purchaser tears the product or the inclusion for getting to the item.
3. Click Wrap Agreement: clickwrap contracts are web-based contracts s that require the client's assent or assent through the "I Accept," or "OK" button. The user must accept the terms and conditions of the particular software with the clickwrap agreement. Users who refuse the term of that contract will not be able to get that product. We regularly witness this type of contracts in our day to day life. For example- online shopping sites like Flipkart, Amazon etc. To purchase anything from them we need to accept their terms and conditions.

Drawbacks of E-Contract:

The Indian Contract of 1872 recognized traditional contract which includes oral contract as well, subsequently there are no such provisions for e-contract as of now. The free consent is considered as the crucial element in the legitimate contract but there may be no scope of negotiation in E-contracts. 

The second drawback of such type of contract comes with the jurisdiction and execution of a contract. In traditional contracts, the place where both the parties meet and execute the contract will be taken as the jurisdiction or otherwise stated in the contract. This is not in the case of e-contracts where the parties meet online and can be located at a different location. In such a case, parties need to be very particular regarding the Jurisdiction. 

In case of clickwrap contract, one party(customer) holds absolutely no power but to accept the conditions of the agreement which is violative to the section 15(3) of the Indian Contract Act which states that if one party holds the upper hand over the other party then it’s on the upper party to prove that party has given its consent wilfully. 

Conclusion

Introduction to the e-contracts is the boon to the upcoming e-market but still, there are some drawbacks and loopholes in the provisions dealing with it like Consumer Protection Act, 2019 of IT Act, 2000 which need to get figure out for the smooth functioning of the e-contracts in the coming years.