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

Ravi clicks 'I agree' on a vendor's website to buy a laptop. Which view about the nature of this e-contract is correct?

An online click-to-agree purchase must still meet the usual contract essentials, such as offer, acceptance, consideration, free consent, capacity and lawful object. Section 10A of the IT Act only ensures that use of electronic means is not by itself a ground to treat the contract as unenforceable.

  1. AIt is not a contract because no one signed physically
  2. BIt is a contract only if a lawyer drafted the terms
  3. CThe usual essentials of a valid contract must still be satisfied; only the electronic medium does not by itself make it unenforceableCorrect
  4. DIt is exempt from the Indian Contract Act because it is made online

Explanation

Section 10A removes only the objection that electronic means were used. The contract must still have offer, acceptance, consideration, free consent, capacity and lawful object. It does not exempt e-contracts from the Contract Act, so option D is wrong.

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