Online Contracts or Digital Agreements are contracts created and signed over the internet. Also known as e-contracts or electronic contracts, these contracts are a more convenient and faster way of creating and signing contracts for individuals, institutions, and corporate.
E-contracts are specifically any legal document that is created and signed through an electronic medium like email, website, computer, or digital contracting platforms like Feelium E-contract. Through electronic or digital means, the involved parties can enter an agreement from anywhere in the world without the need for multiple physical meetings.
Definition: E-Contracts and E-Signatures
Electronic Contracts are legal documents that are created and signed digitally in a paperless fashion. Electronic Signatures are the digital signature of an individual, party, or an authorized representative on an e-contract to show acceptance of the terms and conditions of the legal document.
E-contracts do not require any paper, ink, printer, or a dedicated resource for printing or creating copies of an agreement. This means, by switching to digital agreements, you eliminate the overhead costs of entering an agreement. E-sign aids the parties by saving them time and money by eliminating the need for a physical meeting to sign an agreement.
Are Online Contracts Legal in India?
The answer is Yes. Online Contracts are accepted as legally binding in the Indian court and hold both the parties accountable to perform their duties as mentioned in the online agreement. There are numerous laws that make E-contracts legal in India.
Some of these laws are:
- Indian Contract Act, 1872
The Indian Contract Law legalizes the use of e-contracts or online contracts in India. This means it is legal to create, design, complete, and implement a contract via electronic means.
- IT Act 2000
According to the IT Act of India, E-contracts contracts are legally binding and an acceptable means of entering a contract or agreement.
- Indian Evidence Act
Any contract or agreement done through electronic means can be used as evidence in the court of law. Electronic record in the form of an electronic agreement is acceptable as evidence in court if an electronic acceptance or signature is attached to the same.
Payments & Settlements Act, 2008 that regulates electronic or online payments also accepts digital contracts as legally binding.
