Electronic contract is a contract which is formed through electronic communication. These can be entered either through e-mail or click wrap or browse wrap agreements. At present there is an increase in e-commerce consequently there is also an increase in e-contract. The law concerning this subject is still developing.

Rapid developments in information and communication technologies brought in some new issues and judiciary is not so well equipped to handle these techno-legal issues. Therefore, research in this area is necessary to understand the legal regulation in Indian context. There are many issues which have to be addressed. The Information Technology Act, 2000 is good for cybercrimes but it has addressed little about e-contract and only three sections of the statute speak about e-contracts.

The concept of e-contract has brought new challenges to legal system. The present day Indian legal framework is not in position to deal with these emerging issues. Hence, this research is undertaken to study the possible issues concerning e-contracts in India. Examining the flexibility of current legal frameworks, such as the Indian Contract Act, 1872, and the Information Technology Act, 2000, is crucial to understanding how the fundamentals of traditional contracts have changed within the Indian context and how they might be applied to e-contracts.

These rules set the framework for managing e-contracts in India and regulate contractual agreements. Comprehending the sufficiency of these regulations is imperative for tackling the distinct obstacles that e-contracts pose, such as concerns regarding genuineness, lawfulness, and enforceability.

This study is limited to fundamental principles of contract law. The study examines important international convention and treaties. It also examine Information Technology Act, 2000 and its adequacy or inadequacy to deal with e-contracts. Other related Indian legislations are analysed only from perspective of e-contract. Further, the study would also examine issues likely to counter Indian legal framework and possible challenges before it.

Introduction
Everywhere in the world is now a marketplace where products and services can be bought with a single swipe of a screen because to the internet's explosive growth. E-contracts are legally enforceable agreements that enable e-commerce, which is defined as business done exclusively online. The internet presents a variety of legal challenges despite its ability to reach individuals worldwide. A number of concerns come up, including "how to create contracts, the legality of an e-contract, the authenticity of an e-contract, consumer protection laws and jurisdiction, alternative dispute resolution, and so on."

"Electronic Contract" refers to a contract in which the parties reach an agreement electronically instead of in person. When we talk about it in this context, we're talking about internet business transactions. A person taking out cash from an ATM is an illustration of an electronic contract. When a customer makes a purchase from an online merchant, e-contracts are also used. The use of computers and the Internet for communication has sparked a revolution in information technology and communication fields.

The law needs to keep up with the rate of invention and progress because it is an organic and dynamic field. A new idea in contract law is the "online contract," which is a kind of legally binding agreement created entirely or in part using electronic means. Businesses are starting to use e-contracts more frequently since they are advantageous and economical. In addition, people have found it challenging to sign new contracts because to the recent Covid-19 epidemic and the general restrictions on movement and physical contact. After the Covid pandemic, using this method has become essential and generally recognized, making everyone in the country an expert in technology.

What Is Contract:
A contract is an agreement between two parties that, where permitted by law, imposes obligations on one party or grants certain rights upon the other. Contract law has had to change over time to reflect developments in the political, economic, and technological spheres.In the 19th century, standard forms started to arise, such as insurance policies, mail-order contracts, rail tickets, and lottery tickets. These agreements are known as "Contracts of Adhesion".

Section 2(h) of the Indian Contract Act, 1872 defines a contract as follows:
"A contract is an agreement enforceable by law."

This implies that a contract may only be formed if both parties can enforce their end of the bargain. The Act states that among other requirements, an agreement must have the parties' free consent, legitimate consideration, and legitimate goal in order to be enforceable.

Written contracts are often simpler to enforce, although verbal contracts are also acceptable. A contract needs to have the following essential components in order to be deemed valid:

• Offer: One side makes the other the terms of the agreement.
• Acceptance: The terms as specified are accepted by the opposite party.
• Consideration: In exchange for the advantages specified in the contract, each party provides something of value, such as cash, products, or services.
• Mutual consent: The conditions of the contract must be freely accepted by both parties.
• Capacity: The parties must be of sound mind and legal age in order to be able to engage into a contract.
• Legality: The contract's terms must be legal and not against public policy.

Contracts are fundamental in law because they create obligations and rights enforceable by law. Breaching a contract may lead to legal consequences, such as being sued for damages or having the contract enforced in court.

What Is E-Contract:
The notion of electronic contracts developed after the Indian Contract Act, 1872 was passed, hence there is not a section of the Act specifically devoted to "e-contracts" (electronic contracts). However, the Information Technology Act, 2000 (IT Act), which complements the Indian Contract Act, provides a more comprehensive framework within which e-contracts are recognized legally.

Electronic contracts, which include agreements made via emails or digital agreements, are deemed legally binding under Section 10A of the IT Act. As long as they meet the conditions set forth in the Indian Contract Act namely, offer, acceptance, and consideration this clause guarantees that contracts made electronically will be interpreted in the same way as traditional paper contracts.

In IT Act, the definition of E-Contracts is not expressly given. It mentions the validity of e-contracts as follows-If a contract is formed in electronic form or using an electronic record, the contract must not be declared unenforceable only based on the use of such electronic form or methods. The sphere of e-contracts is far larger than the realm of traditional modes of contracting, hence the standard definition of "contract" does not apply to they. In short, an electronic contract is any agreement that is entered into online by parties that are competent, with free consent, legitimate consideration, and no malicious intent to establish a legal relationship.

The term E-contract can be defined as follows:
"An e-contract is a type of agreement that is created when two or more parties negotiate using electronic tools, like email, when a person interacts with an electronic agent, like a computer program, or when two or more electronic agents interact and are programmed to identify the existence of a contract." As previously said, there is typically only a general description of an electronic contract accessible, and there is no comprehensive definition. Online contracts, digital contracts, and cyber-contracts are other terms for e-contracts.

From an etymological perspective, the term "e-contract" has several definitions, although its meaning is not limited. Broadly speaking, it can be summed up as agreements formed through computer use, such as emails or the Internet, or including computer-related goods like software and databases.

'Electronic contracting' is defined by the International Chamber of Commerce as 'the automated process of entering into contracts via the parties' computers, whether networked or by electronic messaging'. The UN Convention on the Use of Electronic Communications in International Contracts and the US Uniform Electronic Transaction Act and Uniform Computer Information Transactions Act, which both provide for automated transactions, are the two sources of information that are combined to create this definition. "Any communication that parties make by means of data message" is referred to as "Electronic Communication," while "any transaction conducted or performed, in whole or in part, by electronic means or electronic records" is known as "automated transaction."

Kinds Of E-Contract:

1. Click wrap: Commonly found in software or website agreements, where users click "I Agree" to accept terms.
2. Browse wrap: Terms are posted on a website, and a user's continued use implies acceptance.
3. Shrink wrap: Terms are included with a product, and by using or opening the product, the buyer agrees to the terms.
4. Email contracts
5. Contracts through websites.

Formation Of E-Contract:
The process of creating an electronic contract, or e-contract, is similar to that of a regular contract except that it is completed electronically using digital signatures, emails, and websites. E-contracts must fulfill the requirements of the Indian Contract Act, 1872, in order to be recognized under Section 10A of the Information Technology Act, 2000. The formation process typically includes the following stages:

1. Offer:
   An offer is made by one party (offeror) to another (offeree) through electronic means. For example, when a company posts a product or service on its website, it constitutes an offer to the public or a specific person. An offer is a request to engage into a contract with specified terms and conditions, made with the knowledge that, should the other party accept it, the terms and conditions will be legally enforceable. The offer is frequently not made one-on-one in transactions, whether they are traditional or conducted online. The buyer 'browses' the products and services that are offered on the retailer's website before deciding what he wants to buy. Depending on the contract, there are different ways to make an offer.
    
2. Acceptance:
   Most internet contracts are "click wrap" accepted. Under a "click wrap," the client is prompted to click either the "Offer" or the "1 Accept" button once the contract is displayed online in a window. Such agreements have been deemed enforceable in the US by a US District Court. While it is normally not possible to infer acceptance from silence in online transactions, an online merchant may implicitly accept a customer's offer through some kind of action. If the supplier has detailed the terms in detail, however, silence could be interpreted as acceptance.
   
   A contract in "browse wrap" is formed when a user completes specific tasks on the website. 10 In the event that a visitor chooses to download a song from a website, such as songpk.com, doing so will be seen as acceptance of the website's "term and conditions," so creating a contract. Acceptance, then, is a definitive and unequivocal declaration of consent to the terms of the offer.
   
   This is not a very difficult idea in the context of online contracts, more specifically in the context of business conducted over the internet. When an order is placed online, it is typically done so using an order form that the buyer fills out and submits to the seller. If an electronic data interchange (EDI) is involved, the parties agree to the form and the status of messages to determine whether the offer has been accepted.
    
3. Intention:
   Intention is automatically assumed in a commercial transaction with an express contract. Disputes about this condition typically only come up when something is clearly mentioned in a letter or offer. 28 The aim of parties to contracts made online shouldn't present any unique challenges. Since e-commerce typically involves commercial relationships, intent typically occurs automatically. One conceivable exception, though, would be if a customer is tricked into signing an undesired contract by a confusing or possibly fraudulent website. For instance, an online retailer providing digital services might erect a makeshift website that only shows the product and a "Save" or "Download Now" button.
   
   When a customer clicks the button, they might mistakenly believe that the service is free and unintentionally enter into a contract. The conditions and costs of the digital services should be made clear on e-business websites in order to prevent such a situation. The customer should ideally navigate through a series of online pages that specify the details of the bargain before arriving at a final screen that allows them to accept the offer or back out of it without incurring any fees. If such a structure is created, online contracts might be more easily enforced. In the context of online contracts, intention would not present many challenges.
   
   When EDI is employed, specific challenges could arise. When there is an automatic online creation under specific circumstances, the issue could arise. This typically happens with inventory when a particular level of stock is reached. The individual placing the order might not even be aware that it has been generated in such a scenario. Nonetheless, the courts have rejected this, arguing that the parties' consent to an automatic order generation suffices as sufficient intent.
    
4. Consideration:
   Consideration is the component that turns a simple promise into a binding agreement. Although the exchange of anything of value is a common definition, it can also involve harm to the promise or gain for the promisor. Consideration won't be an issue for typical online business transactions, but things could get complicated if a website demands a user's approval to specific terms and conditions before providing a digital service, like in the case of web wrap or click wrap agreements.
   
   The construction of a contract depends heavily on consideration, and the terms pertaining to payment and delivery usually indicate the kind of consideration that the parties plan to engage in to guarantee fulfilment on both sides. In online contracts, the website's policies and its promise to provide the selected items typically serve as consideration against the buyer's promise to pay for the goods they have purchased.
    
5. Consent:
   Consent from the buyer is another essential component in the construction of a contract. Generally, the consent is vitiated and rendered voidable or voidable by a number of criteria enumerated in the Contract Act of 1872. The parties' agreement must be voluntary and unaffected by fraud, deception, or coercion. When referring to e-contracts, this usually means that the parties willfully acknowledge the terms of the agreement electronically, which is frequently verified by digital signatures or other electronic authentication techniques.
    
6. Electronic records:
   Electronic records are essential to the creation, maintenance, and verification of electronic contracts. E-contracts function digitally, utilizing electronic records to uphold and confirm their existence and validity, in contrast to traditional contracts, which are recorded on paper. As long as these electronic records satisfy the prerequisites listed for contracts under Indian law, they are legally enforceable under the Information Technology (IT) Act, 2000.
    
7. Formation:
   Email exchanges, website agreements, and other digital communications are some of the ways that e-contracts are produced. Electronic documents like as emails, digital contracts, or online forms are proof of offer, acceptance, and consideration during formation. These documents show that the parties intended to draft a legally enforceable agreement.
    
8. Storage:
   Compared to traditional paper papers, electronic records offer a permanent, safe, and frequently more effective way to store contractual information. Advances in digital archives and cloud storage have made it possible for businesses to keep enormous volumes of contract-related data with little danger of loss or harm. For future reference, these records need to be kept in a format that makes them replicable and easily accessible.
    
9. Validation:
   An electronic contract satisfies the requirements of a contract, including offer, acceptance, consideration, and legitimate object, in accordance with the IT Act. Electronic records, which are frequently verified by digital or electronic signatures, guarantee the parties' identities and the contract's integrity. A layer of security that ensures the legitimacy of the records is provided by digital signatures, which are validated by Certifying Authorities in accordance with the IT Act.
    
10. Legal Recognition:
    Records kept in electronic format are legally equivalent to paper records, as long as they can be retrieved and duplicated when necessary, according to Section 4 of the IT Act. Comparably, under certain circumstances-such as having the appropriate certification—Electronic records may be admitted as evidence in court under Section 65B of the Indian Evidence Act.

Enforceability Of E- Contracts:
Contract performance has evolved in tandem with technological advancements. The increasing demand for modern, easy ways to participate in legally binding online agreements and transactions has led to the rise in popularity of electronic signatures in recent years. The execution process has been significantly altered by technical improvements, in addition to the methods used in these transactions. All economic activity was significantly impeded by considerable logistical challenges resulting from the COVID-19 epidemic and the lockdowns that followed. Due to the pandemic, practically all transactions that were arranged prior to the epidemic have been remitted, as signing contracts in person has become more impossible.

Parties are thinking of signing electronic contracts (E-Contracts) in certain circumstances. Even before the epidemic started, Indians were aware of E-Contracts. The use of electronic signatures and contracts has increased dramatically in recent years due to this epidemic. The Pandemic has also brought attention to the need to redesign legal structures for the digital era. This essay has examined the validity and implementation of electronic contracts.

In light of the current state of uncertainty, this essay will describe how electronic contracts work in this context. As was previously mentioned, oral contracts must be formed by parties who are able to contract, for a reasonable consideration, and for a valid purpose in order to be recognized under the Indian Contract Act of 1872. Additionally, they must not be expressly ruled invalid. Therefore, as long as an electronic contract satisfies all requirements for being a valid contract, nothing in the Indian Contract Act prohibits its enforcement. Free consent is essential to a contract. E-contracts frequently involve a "take it or leave it" exchange that leaves no opportunity for negotiation.

When one party was in an unjustly dominant position throughout the contract's negotiation, Indian courts have handled those cases, for instance. When someone accepts disadvantageous terms of a contract in exchange for goods or services or a source of money, for example, the emphasis is on the parties' ability to negotiate. If the parties are on an uneven or nearly equal playing field, there are, nevertheless, certain exceptions to this rule. In order to successfully defend an unreasonable E-contract and the parties' unequal bargaining power, the consumer must demonstrate that the goods or services sought under the terms of the agreement were an absolute necessity. Additionally, the consumer must demonstrate that there was no other option available to them.

Challenges Of E-Contracts:
India is now the competition for every country on the earth. Everyone can see that India's progress is now comparable to that of other developing countries. However, despite India's technological prowess, e-contracts and e-commerce still need to be kept within reasonable bounds. Spreading this knowledge throughout the country is proving to be difficult for India. To obtain this kind of information, residents want a single point of contact. Because of a number of issues, including widespread illiteracy, a lack of understanding, and the fact that most people in the country live in rural areas without access to the internet, electronic contracts have a terrible reputation in the eyes of the uninformed public.

One of the main drawbacks of the ineffective and inefficient execution of E-contracts is the range of norms, phraseology, and tactics used by the Administration Department and other agencies, many of which need to be more understandable to laypeople. Digital signatures, cryptography, and encryption can all be used to confirm a party to an e-contract's identity. E-contracts are complicated by the possibility of holding the parties liable for issues caused by unforeseen technological problems, such as those with the network or Internet, issues with the application's code, or mistakes made by the parties' employees.

Fraud may occur in e-contracts because individuals may be able to fabricate their identities and defraud the other party. The lawsuit pertaining to borderless transactions has been hindered by the challenge of applying the principle of law to jurisdiction.

• Jurisdictional challenges:
  Although the CPC provides the framework for Indian civil courts to determine their jurisdiction based on two fundamental principles—(i) the defendant's place of abode and (ii) the location from which an action is launched—parties are free to select the courts in which to litigate their disputes, but they may only do so in those that are not prohibited from doing so. In other words, parties cannot assign jurisdiction to a court that lacks the authority to hear their case. This gives E-Contracts jurisdictional sanction. Because e-contracts are completed virtually rather than in person, it may be challenging to apply the traditional notions of jurisdiction to them.
  
  The question of which country has jurisdiction in the event that a contract is executed needs to be resolved under the current e-contract regulation. The largest argument that has rattled the country over time is which legislation should be used to handle disputes between providers and consumers/purchasers. Parties to E-contracts may, nevertheless, designate a jurisdiction that is either the location of one of the contractual development firms or a completely other jurisdiction that has been decided upon by all contracting development. The aforementioned legal matter was addressed by the Allahabad High Court in its historic ruling.
   
• Loss of data:
  Even though record rooms can prevent data loss in paper contracts, digital data is more susceptible to theft, hacking, and loss 488. Indian customers can now purchase items through internet transactions that are planned, shipped, and comfortably furnished in a public virtual marketplace. For this reason, several security and protection measures are offered in order to allay the worries of the buyers. Thanks to innovation, internet associations and organizations now have a far greater capacity to gather and examine vast amounts of data about the clients that visit their websites.
  
  As a result, questions have been raised about how this information is managed and applied. Businesses used to simply monitor their customers' purchases before the internet was invented, but these days they can also monitor the websites that their customers find fascinating.
  
  For instance, a lot of businesses want their clients to register with them online and provide personal information. Some websites, on the other hand, no longer offer their services to users who do not register. There is no assurance that the person using the benefit will not misuse their personal information in any way, even if they want to sign up. Businesses frequently give this information to a third party for illicit or prohibited purposes. People who feel that this practical setting violates their privacy are concerned about identity theft. Identity theft is the crime of stealing the personal or financial information of another person in order to use that person's identity for extortion, such as making unapproved purchases or swaps. Numerous methods are used to commit data fraud, and as a result, victims frequently experience serious harm, monetary loss, and public humiliation.
  
  In spite of this, the consumer is charged for the criminal's products and enterprises, which keeps the client in a never-ending cycle of financial distress. Due to the fact that data theft usually starts with small, imperceptible activities, consumers frequently discover they have had their accounts compromised after it is too late. Furthermore, the usage of charge cards, Visas, and other smart cards may result in the sale, follow-up, and documentation of the customer's banking and purchasing habits.
  
  The IT Act, which addresses digital robbery, stipulates that anyone conducting a demonstration that causes harm to a computer or computer framework without the owner's consent faces a three-year prison sentence, a fine of INR five lakhs, or both. Moreover, theft of computer assets or specialized equipment without authorization is prohibited by Sec. 66B. Individuals who utilize another person's electronic mark, secret phrase, or other notable information falsely or untrustworthily.
   
• E-signature:
  In the Information Technology (Amendment) Act of 2008, "electronic signature" took the role of "digital signature." A digital signature is specific to the document and the signer, unlike a physical signature, which is dependent on technology. On the other hand, an electronic signature is universal and unaffected by technology. There is no standard for electronic signatures. It could be a typed name or a handwritten signature. To expand the use of E-contracts in an e-commerce setting, the term "digital signature" has been replaced with "electronic signature."
  
  It is noteworthy that certain nations, such as the United States, have enacted legislation to guarantee that a signature's legal validity cannot be revoked just because it is electronic or does not adhere to the necessary technical protocol. "Once the contract is concluded orally and in writing, the mere fact that the formal contract has to be prepared and initiated by the parties would not affect either the acceptance of a contract so entered into or implementation thereof, even if the formal contract has never been initiated," the Supreme Court declared after acknowledging that emails are contracts. If two parties express through email that they would like to enter into a contract, the email can be regarded as legally binding.

Recent Case Laws Studies:

1. Nandan Biometrics Limited vs. Deity (2019)
   In this case, the Supreme Court dealt with the issue of whether an e-mail can be considered a valid mode of communication for the purpose of an electronic contract. The court held that e-mails can constitute a valid form of communication under the Information Technology Act, 2000, provided they meet the requirements for electronic records.
    
2. HDFC Bank Ltd. vs. M/S. D.N. S. Associates (2022)
   In the context of e-contracts, the Supreme Court looked at questions about consent and contract creation. The court reiterated that permission gained electronically is equally legitimate as consent obtained conventionally, given that it satisfies the requirements for acceptance and agreement set forth by law.
    
3. M/s. Zoom Developers Pvt. Ltd. vs. M/s. K.K. Mittal Construction Co.
   This case focused on the dispute resolution mechanisms in e-contracts. The Supreme Court held that electronic contracts are subject to the same dispute resolution mechanisms as traditional contracts, including arbitration clauses, provided they are validly executed and enforceable under the law.

Conclusion
In conclusion, the rapid growth of the internet has transformed the world into a vast marketplace where transactions can be conducted with a simple swipe of a screen. E-contracts, which facilitate e-commerce by allowing agreements to be formed electronically, have become a cornerstone of online business. While this convenience opens up global opportunities, it also presents several legal challenges, including issues related to contract formation, legality, authenticity, consumer protection, jurisdiction, and dispute resolution.

The entire framework of the economy is based on the law of contracts. Only when the law of the land is unambiguous and understood by all parties involved can business, trade, and commerce thrive. Yes, a key element in lowering company risks and expenses is legal certainty. All forms of contracts, whether they are arranged via the traditional postal service or the more contemporary internet means, should include this element of assurance. Consequently, there is a need for judges, jurists, and practitioners who study law to resolve contradictions and simplify and make e-contract law easy to comprehend and apply.

Although an electronic contract is fundamentally the same as one that is created through postal correspondence, there are several features that go beyond the bounds of what is permissible under contract law. First, the issue of whether the "postal rule" applies to contracts formed by electronic communication needs to be addressed. Second, the issue of jurisdiction arises because the internet's functioning and infrastructure are so dynamic that establishing a single location as the contract's jurisdiction is difficult and highly disputed.

Nevertheless as e-contracts proliferate, legal systems will need to adjust to handle the challenges posed by their application. This entails putting in place legal frameworks that ensure enforceability, legitimacy, and consent while striking a balance with consumer protection and online dispute resolution. To provide clarity, consistency, and justice in the internet marketplace, the law must change in step with technology improvements since it is an organic and dynamic body.