CMA Foundation · Fundamentals of Business Laws and Business Communication · E-Contracts and E-Signature - Meanings and Requirements
Meera Traders emails a quotation to Anand Stores, and Anand Stores replies by email accepting it. Which statement best describes the legal position?
The contract is not unenforceable merely because the quotation and acceptance were exchanged by email. Section 10A of the IT Act recognises electronic communication of proposals and acceptances, though the usual contract essentials such as consideration and lawful object must still be present. No paper, certificate or court registration is required.
- AThe contract is invalid because acceptance must be given in writing on paper
- BThe contract is not unenforceable merely because the offer and acceptance were in electronic formCorrect
- CThe contract is valid only if both parties hold electronic signature certificates
- DThe contract becomes valid only when a court registers the emails
Explanation
Section 10A allows proposals and acceptances to be communicated electronically without the contract being treated as unenforceable on that ground alone. The other essentials of a valid contract must still be met. Options A, C and D add requirements that Section 10A does not state.
Did you get it right without looking?
One question tells you little. A timed set on E-Contracts and E-Signature - Meanings and Requirements shows your real accuracy, how long you take and where you lose marks.
More E-Contracts and E-Signature - Meanings and Requirements questions
- Under the Information Technology Act, 2000, when is an electronic signature deemed to be a secure electronic signature?
- Rahul, a subscriber, publishes his Digital Signature Certificate in a repository. Under the Information Technology Act, 2000, which statemen…
- Rohan revokes his online offer to Sunita through an electronic record before she accepts. Sunita argues the revocation is ineffective solely…
- Under Section 21 of the IT Act, 2000, a licence to issue electronic signature Certificates is:
- Under Section 10A of the Information Technology Act, 2000, a contract whose proposal and acceptance are both communicated by electronic reco…
- A Certifying Authority suspended the Digital Signature Certificate of Mr. Rao, a subscriber, on its own opinion that suspension was in publi…