ELECTRONIC

CONTRACTS
 • INTRODUCTION
• TIMELINE OF EVOLUTION
• TYPES OF E-CONTRACTS
• FORMATION OF E-CONTRACTS

CONTENT
• ELEMENTS OF CONVENTIONAL CONTRACTS IN E-
CONTRACTS
• UCC
• UETA
• E-SIGN ACT
• CHALLENGES
• ADVANTAGES OF E-CONTRACTS
• CONCLUSION
WHAT IS AN E-CONTRACT?
E-contract is any kind of contract formed by the interaction of two or more individuals
using electronic means, or the interaction of at least two electronic agents that are
programmed to recognize the existence of a contract. (US Legal)
EVOLUTION OF E-CONTRACTS
TYPES OF E-CONTRACTS

• Click-wrap

• Shrink- wrap

• Browse- wrap
Click-Wrap Contracts (Click Through)

•It is a take-it-or-leave-it contract which lacks bargaining power.

1. Type and click- the user must type ‘I accept’ or other specified words in
and on screen box and then click a ‘submit’ or similar button.
2. Icon clicking- where the user must click the ‘Ok’ or I ‘agree’ button on a
dialog box or pop-up window. A user indicates rejection by clicking ‘cancel’
or closing the window.

•Enforceable because the offer has indicated acceptance

Shrink-Wrap Contracts
• They are attached to shipped products, bound by plastic wrapping that contains terms and conditions.
• EULA (End User License Agreement)- once the end user opens the packaging the EULA is considered to be in
effect.
• EULA Includes
1.License
2.Rights of use
3.Fees and payments
4.Forum clauses
5.Warranties
6.Limitations and
liabilities
• Usage of the
product deems the
Browse-Wrap Contracts
• Browse wrap agreements cover the access to or use of materials available on website
or downloadable product.

• It does not require the user to assent to the terms.

• Validity of the Browse-Wrap contract depends on whether the user has noticed the
terms and conditions prior to using the website or the product.
TECHNOLOGY TRENDS IN LAW FIRMS
E-billing

Electronic Case Management

Law firm websites

E-filing

Electronic legal research

HOW E-CONTRACTS ARE FORMED

Clear terms

Opportunity to consider

Evidence of acceptance
Elements Of Conventional Contracts In
E-Contracts
Offer & Acceptance

Lawful Consideration

Lawful Object

Competent Parties

Free Consent

Certainty of Terms
E-CONTRACT VS TRADITIONAL CONTRACTS

E-contracts Traditional contracts

a. Online/computer generated a. Written/oral

b. Digital signature b. Handwritten signature
c. Automated c. Manual
d. Lawyers are unnecessary d. Lawyers are necessary
e. Expensive e. Fraction of the cost
 Advantages Of E-Contracts

• Time Saving
• Building Customer Relationship
• Reducing Distribution Cost
• Attractive option for physical challenges
• Huge varieties
FORMATION OF LEGAL FRAMEWORKS
• United States Uniform Acts (USUA)
• Drafted by the Uniform Law Commission (ULC)

• Approved by the National Conference of Commissioners on Uniform State Laws

(NCCUSL) – since 1892.
 Uniform Commercial Code (U.C.C.), 1952
• Purpose - harmonizing the law of sales and other commercial transactions
across USA.
• Article 2A – lease of goods including computer equipment.
• Applies to online sale of goods, not services.
• Issues to Consider – state, scope, etc.
 The Uniform Electronic Transactions Act
(UETA), 1999
● UETA’s purpose is to harmonize state laws concerning retention of paper

records and the validity of electronic signatures.

● Article 4: business transactions, commercial and government matters,

electronic transactions.

● Article 3: Limitation of the Scope

- Irrelevance to non-business transactions.

 Electronic Signature in Global and National
Commerce Act (E-Sign Act), 2001
• Purpose to bestow on e-contracts the same authority as paper-based.
• Any mark, image, symbol, or sound counts as an e-signature.
• E-Sign Act excludes:
- Wills, testamentary trusts
- Family law matters
- Cancellation of utility services
- Notices under credit or rental
- Cancellation of health or life insurance, etc.
Challenges Of E-Contracts In the US Legal
System
Consumer Protection issues

Data and network security issues

Intellectual property rights issues

Privacy issues MAJOR CHALLENGES

Jurisdiction / Choice of law issues

Evidence issues

Cybercrime to e-payment and ect.

 CONCLUSION
Long way compared to early days with the increase in number of internet
users, e-contract is organised to grow further. As all business through e-
contract sites is ended through the internet without any direct physical
interfaces, the main basis connections is the trust of the customers which
should be engaged at any cost. A law in this field will detect the criminals
who have used the internet as a source for making quick money.
 CONT’D
•A solution to the problem with the moment of contract and jurisdiction can
be removed by all countries adopting the same regulations relating to their
online contracting and thereby creating a common law that will apply in all
instances. Such a move will promote much more certainty in electronic
contracts as all parties will know exactly what their entitlements and
responsibilities are in such contracts.
https://www.grin.com/document/176367

http://www.ibls.com/internet_law_news_portal_view.aspx?s=latestnews&id=1913

https://www.lawteacher.net/free-law-essays/commercial-law/e-commerce-and-e-contracts-commercial-law-essay.php

https://www.slideshare.net/envydalmia/types-of-electronic-contracts

https://taxguru.in/corporate-law/all-about-e-contracts-meaning-types-and-law.html