In today's world, a large number of international trade transactions are carried out by electronic data interchange and other means of communication, commonly known as “electronic commerce”. It uses alternatives to paper-based methods of communication and storage of information. The United Nations Commission on International Trade Law (UNCITRAL), by the means of Model Law on Electronic Commerce (MLEC), sought to provide a set of internationally acceptable rules with an aim to remove legal obstacles and increase legal predictability for e-commerce. It has further improved the efficiency in international trade by providing equal treatment to paper based and electronic information, thus enabling the use of paperless communication. The model law is not a comprehensive, code- like articulation of the rules for the electronictransactions. It does not intend to govern every aspect of electronic contracting. It adopts a limited framework approach and enables and facilitates e-commerce. It has adopted the following fundamental principles of the modern electronic-commerce law: e The principle of non-discrimination — It ensures that any document would not be denied legal validity, effect, and enforceability solely on the basis that it is in electronic form. e The principle of technological neutrality — It mandates the adoption of such provisions which are neutral with respect to technology used. This aims at accommodating any future developments without any further legislative work. e The functional equivalence principle — Itsets out the specific requirements that e- communication ought to meet in order to fulfill the same functions that certain notions ,in traditional paper based system, seek to achieve, for example, “writing”, “original”, “signed”, and “record”. All the states have given favourable consideration to the model law while enacting or revising their laws so that uniformity of the law applicable to the alternatives to the paper-based methods of communication is facilitated.