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

Rohan runs an online store. A customer, Kavita, clicks the 'I Agree' button on the displayed terms and then places an order for a laptop. Which statement best describes the validity of the resulting contract?

The contract is not unenforceable merely because Kavita accepted by clicking the 'I Agree' button. Section 10A protects acceptance expressed in electronic form or by electronic records. It does not demand a handwritten signature or an electronic signature certificate from the customer for the contract to be enforceable.

  1. AIt is void because no handwritten signature was obtained
  2. BIt is not unenforceable solely because acceptance was given by electronic meansCorrect
  3. CIt is voidable at the option of Rohan because the terms were standard
  4. DIt is valid only if a licensed Certifying Authority issued Kavita an electronic signature certificate

Explanation

Acceptance by clicking is acceptance expressed in electronic form or by electronic record. Under Section 10A the contract cannot be treated as unenforceable solely for that reason. The option requiring a handwritten signature or a certificate adds conditions that Section 10A does not impose.

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