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

Under Section 10A of the Information Technology Act, 2000, a contract whose proposal and acceptance are both communicated by electronic records is treated how?

Such a contract is not unenforceable merely because electronic form or means was used. Section 10A of the IT Act, 2000 protects electronic communication of proposals and acceptances, and it does not require a paper copy, registration or any location condition for validity.

  1. AIt is not unenforceable merely because electronic form or means was usedCorrect
  2. BIt is enforceable only if a written paper copy is signed later
  3. CIt is valid only if the parties are in the same State
  4. DIt is void unless registered with the Controller

Explanation

Section 10A provides that a contract formed through electronic communication of proposals, acceptances or revocations shall not be deemed unenforceable solely because electronic form or means was used. No paper copy, registration or same-State condition is imposed by that section. The other options add requirements that the section does not contain.

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