Electronic Commerce And Its Impact On Individuals And Entities

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Introduction With the broad expansion of internet and its impact on individuals and entities that carries their business activity through electronic means is the development of what is called as Electronic Commerce. It has been envisaged that electronic commerce (E-commerce) provides benefits to Multi-National Enterprise, Small and medium size Enterprises and even individual people. So far as effectiveness of E-Commerce is concerned it is based on electronically made contracts known as Electronic Contracts. Accordingly, a new type of contract in international trade named electronic contract came into being. In simple terms, electronic contract is an agreement entered into by the parties through electronic means to ascertain the rights and…show more content…
Basically, to understand electronic contract it is essential to understand the general principles of contract and the law governing contracts in Indian context. Since, contracts are in essence an agreement between the parties to conduct any business transaction which has to be valid and legally binding on the parties to benefit their transactions. It is the Indian Contract Act, 1872 which governs the manner in which contracts are made and executed in India. It specifically provides the way in which the provisions in a contract are implemented and codifies the effect of a breach of contractual provisions. The following basic elements must be present to enforce a contract: 1. An offer 2. Acceptance of the offer 3. Intention –the parties must intend that their agreement will be legally binding. 4. Consideration – Any contract to be enforceable by law must have lawful consideration. It may be generally defined as the price that is paid in return for a promise. 5. Intention to create legal relations- If there is no intention on the part of the parties to create legal relationships, no contract is possible between them. 6. Parties must be competent to contract-
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