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CS Professional · Artificial Intelligence, Data Analytics and Cyber Security - Laws and Practice · Internet and Other Technologies

Meera, a customer, clicks 'I agree' on an online shopping site's terms and conditions and completes a purchase. Which statement reflects the legal position in India?

The contract is valid. The IT Act, 2000 recognises electronic records and contract formation through electronic means, so a click-wrap acceptance meeting the Indian Contract Act essentials is enforceable without a handwritten signature or notarisation.

  1. AThe contract is void because it lacks a handwritten signature
  2. BSuch electronic contract is valid, as the IT Act, 2000 gives legal recognition to electronic records and contracts formed through electronic meansCorrect
  3. CThe contract is valid only if notarised
  4. DThe contract is valid only if the seller is a government entity

Explanation

The IT Act gives legal recognition to electronic records and electronic means of acceptance, so click-wrap contracts satisfying the Contract Act essentials are enforceable. Neither handwritten signature nor notarisation is required.

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