Abstract

In this modern age of digital transformation, Electronic Contracts have become absolutely central in facilitating commercial transactions. The effect of the same can be observed across various sectors, from E-Commerce to the critical software licensing industry. However, with an ever-increasing adoption of E-Contracts in commercial transactions, issues have arisen with respect to their compliance with the traditional Contract Law pre-requisites and the adequacy of the existing legal framework in regulating them. This paper seeks to thoroughly analyze the evolution, legal recognition and enforceability challenges with respect to E-Contracts in India. In order to determine the enforceability, the recognition of E-Contracts under the Indian Contracts Act, 1872, Information Technology Act, 2000 and Bharatiya Sakshya Adhiniyam, 2023 and Sale of Goods Act 1930 shall be evaluated. At the same time, the paper shall assess and evaluate the recognition of different forms of E-Contracts before Indian Courts. This research through analysis of legislations, judicial precedents and comparative analysis with other legal systems seeks to address the gaps which exist with respect to complete recognition of E-Contracts, proposing thereafter systematic legal reforms from attaining an ideal balance between technological advancements and judicial integrity. A key finding throughout the paper has been that although Indian laws generally recognize the legitimacy of E-Contracts, uncertainties persist regarding the legal status of digital signatures, the binding nature of standard-form contracts, and the determination of jurisdiction in international transactions. To address these concerns, the paper suggests amending the Information Technology Act, establishing dedicated dispute resolution mechanisms, and harmonizing domestic regulations with global e-commerce standards to strengthen the enforceability of digital contracts in India.

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