Research article


Ms. Shraddha Oberoi1 and Mr. Sumit Agarwala2

Online First: December 22, 2022

In the tremendous development of computer innovation a lot changes has been brought in the field of information and technology. In the flourishing field of E-Commerce where the business ventures are given versatility in terms of time, space, payment and distance, the efficacy of E-Contracts are increasing. E-Commerce in India have promoted market integration thereby purchasing & selling of goods and exchanging & receiving information worldwide. E-Contracts facilitate strict terms and conditions, authenticate digital verification, create instant legal relationship between parties and facilitate negotiations between them. E-Contracts get validation from the provisions of Indian Contract Act, 1872. The statutory provisions governing E-Contracts are laid down in the Information Technology Act, 2000 and its enforceability is governed under the provisions of Indian Evidence Act, 1872. The legal challenges are faced when the questions pertaining to cross border jurisdiction arises specially when foreign companies set up their operations in India and enter into contracts with local vendors and customers in India. The Indian Courts have jurisdictions within the territorial limits where the cause of action arises or where the defendant resides or carry on with his businesses. Under E-Contracts the difficulty arises to determine the place of contract concluded specially when both the parties are from different locations. Also with the progression of E-Contracts various challenges pertaining to its execution, existence and legality are faced. In this paper the authors attempt to trace the legal developments in India pertaining to questions related to the validity of E-Contracts, place of business and cause of action. Also the author tries to throw light on the legal challenges faced in the deployment of E-Contracts which happened in three stages namely philosophical stage, logical stage and execution stage in India. The author in this paper tries to propose private dispute resolution methods such as Arbitration wherein the parties get the leverage to decide upon the substantive law which will be applied in case of any dispute that arises outside the territorial limits in order remove any ambiguity. Also the author tries to carve out the disadvantageous site of the parties for not indulging into the modes of mediation and conciliation.


E-Commerce, Contract, Indian Laws, Legal Issues, Challenges