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CMA Foundation · Fundamentals of Business Laws and Business Communication · E-Contracts and E-Signature - Meanings and Requirements

Meera Traders sends a quotation to Kaveri Enterprises by email, and Kaveri accepts it by replying through email. Under Section 10A of the Information Technology Act, 2000, what is the position of the resulting contract?

The contract cannot be treated as unenforceable merely because email was used. Section 10A of the IT Act, 2000 says a contract whose proposal and acceptance are made in electronic form or by electronic records is not unenforceable solely because of that electronic means.

  1. AIt is unenforceable because the acceptance was not made on paper
  2. BIt cannot be treated as unenforceable merely because email was used for the proposal and acceptanceCorrect
  3. CIt is enforceable only if a notary attests the emails
  4. DIt is valid only if the parties later sign a written copy

Explanation

Section 10A provides that where proposals and acceptances are expressed in electronic form or by electronic records, the contract shall not be deemed unenforceable solely on the ground that the electronic form was used. Option A states the opposite. Notarisation and later paper signing are not requirements under the section.

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