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

Which of the following communications in contract formation is expressly covered by Section 10A of the Information Technology Act, 2000 as capable of being made in electronic form?

Section 10A covers the communication of proposals, the acceptance of proposals, and the revocation of proposals and acceptances when expressed in electronic form or by electronic records. So the whole offer-acceptance-revocation process may be electronic, not just one stage, and performance is not mentioned.

  1. AOnly the communication of the proposal
  2. BOnly the acceptance of the proposal
  3. COnly the performance of the promise
  4. DProposal, acceptance, and revocation of proposals and acceptancesCorrect

Explanation

Section 10A lists the communication of proposals, the acceptance of proposals, and the revocation of proposals and acceptances. Therefore all three stages may be electronic. Limiting it to only the proposal or only the acceptance is too narrow, and performance is not listed in the section.

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