CMA Foundation · Fundamentals of Business Laws and Business Communication · Legal Aspects of Business Communication
Ravi sends an email offer to sell machinery to Sunil, and Sunil replies by email accepting. Under Indian law, the contract formed by this exchange is:
The contract is valid because the IT Act states that a contract cannot be denied enforceability merely because it was formed through electronic records. The normal elements of a contract must still be present, but handwritten signatures, stamp paper or postal confirmation are not generally required.
- AValid, as the IT Act does not deny validity to a contract merely because it was formed through electronic recordsCorrect
- BVoid, because a contract must be on stamped paper
- CVoidable at Ravi's option, because no signature was handwritten
- DValid only if confirmed later by registered post
Explanation
The IT Act provides that a contract is not unenforceable merely because electronic records were used in its formation. The usual Contract Act elements still apply. Handwritten signatures, stamped paper for all contracts or postal confirmation are not general requirements.
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