Digital contracts are contracts that are created through electronic means of negotiation between two parties. They are sometimes referred to as cyber contracts, digital contracts, and online contracts.
The Uberrimae fidei doctrine forms the foundation of e-contracts. "Utmost good faith" is what the Latin phrase "Uberrima fides" implies. Due to the parties' constant communication, there is very little possibility of misinformation or the concealment of important information in e-contracts. As a result, both parties rely entirely on one another for all information. That being said, there are a few requirements that must be met to finish the electronic contract.
E-Contract Categories
By using the website, the contracting party is supposed to be bound by a browsing wrap agreement. Websites typically employ these contracts, whereby a user's continuous usage of the website is understood to constitute acceptance of the site's updated terms of use and other rules.
In a shrink-wrap contract, the buyer is bound by the terms and conditions of the license agreement as soon as he opens the box. When purchasing software items, these contracts are typically observed.
Clickwrap or click-through agreements, require the user to click the "ok" or "I agree" button on the dialogue box to indicate his agreement to the terms and conditions regulating the licensed usage of the software. By selecting cancel or shutting the window, a user might opt to reject the conditions or disagree with them. Upon rejection, this user will not be allowed to purchase or use the service.
Unfair Terms in digital contract
In e-commerce, consumers frequently encounter contracts containing provisions that are considered unfair and detrimental. Excessive complexity, unilateral modification clauses, and irrational liability disclaimers are features of these terms. Long and complicated agreements, for example, may conceal important sections, making it difficult for customers to fully understand their rights and obligations. The Consumer Protection Act, 2019 addresses unfair contract terms in India and gives consumers the ability to contest unfair contract conditions and pursue suitable remedies. In the case of MakeMyTrip (India) Pvt. Ltd. v. Roshan Lal Gupta, the National Consumer Disputes Redressal Commission (NCDRC) determined that some conditions in the airline's contract were unjust and unenforceable, providing an example of the problem of unfair contract terms. This lawsuit establishes a standard for safeguarding Indian customers against coercive contract clauses.
Legal Provisions:
Indian Contract Act, 1827: Every agreement that is formed must comply with the provisions of the relevant legislation to be legally enforced. The Indian Contract legislation, 1872 governs the formation and enactment of contracts in India. The Indian Contract Act has enough provisions to cover these kinds of transactions. Regarding the creation of the contract, with the exception of any situation in which the parties transmit their offer or their acceptance of it via electronic means. Regardless of whether the information was transmitted through a database, the will's affirmation is significant, and executed, and it will still be deemed lawful and enforceable if an electronic medium is used.
The Information Technology Act, 2000: Despite discussing contracts, the Indian Contract Act made no mention of an e-contract legality. Consequently, the legal recognition of transactions and exchanges conducted by electronic means was established by The IT Act, of 2000. Under the IT Act of 2000, the electronic agreements would be deemed completely legal. As per the provisions of Section 3 of the IT Act, 2000, the electronic signatures of both parties on the contracts confirm their authenticity.
Indian Evidence Act,1872: It is important to recognize that every evidence that has been provided, noted, or stored away as an electronic device is now considered evidence. similar to the voice memo that the recording device records. As an additional measurement to this system of evidence, modern voice note-recording devices, computerized cameras, sophisticated camcorders, and video conferences are currently being introduced.
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