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

Which feature of Section 10A of the IT Act, 2000 is correctly stated?

Section 10A covers electronic communication of proposals, their acceptance, and the revocation of proposals and acceptances. It only says such a contract is not unenforceable solely because electronic means were used. It sets no value limit and does not remove other essentials of a valid contract.

  1. AIt covers communication of proposals and acceptances but not their revocation
  2. BIt applies the validity rule only to contracts above a prescribed value
  3. CIt covers proposals, acceptances and the revocation of proposals and acceptances in electronic formCorrect
  4. DIt makes every electronic contract automatically valid without other essentials

Explanation

The section lists communication of proposals, acceptance of proposals, and revocation of proposals and acceptances as the stages that may be in electronic form. It speaks only of not being unenforceable solely on the ground of electronic form. It sets no value limit and does not dispense with other essentials.

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