Signing usually means signing your name on a document. The main functions of signing a document are to confirm the identity of the parties, to convey the agreement of the parties to the terms of the contract and non-repudiation, i.e. Once a person has signed it, he cannot subsequently deny that he was not a contracting party. A signature is not required under the Indian Contracts Act, which states that even a verbal agreement between the parties can be a valid contract. Therefore, a contract does not need to be physically signed to be valid. However, some laws have established signature requirements, for example a deed of transfer of ownership cannot be a valid document unless certified by the seller with a signature and/or thumbprint. In another case, the Indian Copyright Act 1957 requires the signature of the assignee. In this case, the Information Technology Act equates an electronic signature with a physical signature. An electronic signature must be issued by the competent authorities under the Information Technology Act, but the central government has not reported any electronic signatures. In accordance with § 5 of the Information Technology Act, electronic signatures are recognized and any signature requirement is considered fulfilled if the document is authenticated by electronic signature in the manner prescribed by law. There is no difference between the applicability of electronic/digital signatures and other accepted valid electronic signatures that have the same status as handwritten signatures under Indian law.

There is a presumption of validity for electronic documents signed with a valid electronic signature (as recognized by the Information Technology Act), which is assimilated to a handwritten signature. The Supreme Court recognized the change in the execution of commercial transactions, rejecting the argument that the exchange by e-mail could not be characterized as a contract, stating: “Once the contract has been concluded orally or in writing, the mere fact that a formal contract must be drawn up and initialled by the parties would not affect the acceptance or performance of the contract so concluded. even if the formal contract was never initialled.” Thus, e-mails that express the clear intention of the contracting parties can be treated as a binding contract. How to conclude electronic contracts: contracts concluded electronically such as mail, fax, Whatsapp, etc. be completed. The essential elements for the creation of the electronic contract are ahead of the requirements of the Indian Contracts Act of 1872. [1] However, electronic contracts formed by click-wrap, i.e. certificates not issued by CA, are not recognized under the Information Technology Act. Although they cannot be invalid under section 10A of the Act, they do not enjoy a presumption of validity and can therefore be challenged. In these cases, the signatory must prove: Under the provisions of the Information Technology Act 2000, in particular Section 10-A, an electronic contract is valid and enforceable.

A digital signature is an electronic form of a handwritten signature from the physical world. These apply to electronic documents rather than paper documents. Similar to a written signature, it has a dual function of integrity and non-repudiation. They are unique to each individual and belong solely to their owner and therefore cannot be rejected later. It also helps maintain integrity as any tampering with the document is intercepted due to encryption technology. It uses an asymmetric cryptosystem and a hash function. The Internet has revolutionized the way people communicate. In addition, the Internet and electronic data interchange have changed the way people do business. It spawned a new form of commerce and commerce called e-commerce. With the high penetration of the Internet in the world and the explosion in the number of Internet users, e-commerce is booming. High speed and the absence of geographical boundaries, the main advantages of the Internet, have contributed greatly to the growth of e-commerce.

For example, a buyer in India can buy goods from a seller in the United States with just a few clicks, even without having to leave their home or office. E-commerce has spawned a new form of contract in the electronic world known as electronic contracts or simply electronic contracts or online contracts. Most of us are familiar with electronic contracts – the most common is the “End User License Agreement” or EULA, where you have to click the “I agree” button to install software, or the terms and conditions/user agreement on a website. These methods are used to issue Digital Signature Certificates (DSCs) after successful verification of the identity and address of the requestor. It is signed by a trusted independent third party (certification authority) approved under the Information Technology Act. A certificate authority (CA) is an authority approved by the CCA to issue certificates for electronic/digital signatures. The CCA is the authority appointed under the Information Technology Act to license and regulate CAs. The current list of CAs can be found here. There are many ways such as Gmail, WhatsApp, text messages, etc. that can be used to close deals, and as technology expands the method of a contract, it changes day by day, which is more convenient for people.

The fastest growing technology makes these contracting methods easier and more convenient for people. E-commerce is a booming business in today`s market. It refers to transactions made when buying and selling goods and services over the Internet. However, with the use of e-commerce, questions of contract validity and legitimacy have increased. The Indian Treaty Act of 1872 continues to regulate electronic transactions and its elements for a valid contract must be fulfilled independently of this. Electronic computers with electronic signatures are connected. These two-factor authentication procedures must also ensure the validity of the signatory. As we know, electronic contracting has its own advantages and disadvantages. On the one hand, it reduces time, costs, reduces paperwork, fixation in the contract and the reaction of the parties, but on the other hand, there are many disadvantages such as online fraud. Since the proposition in electronic contracting is not based on who makes decisions about individual transactions, but on how risks can be managed analytically. The objective is therefore to create CVs to attribute a text to a party in order to avoid contractual fraud and inconsistencies. E-contracting is ideally designed to promote the re-engineering of enterprise systems that exist in multiple organizations and require a combination of technologies, processes, and market techniques that support immediate knowledge sharing.

The Indian Contract Act, 1872[1] prescribes contract law in India and is the key law regulating Indian contract law. The Act is based on the principles of English common law. It applies to all states of India. It specifies the circumstances in which the commitments of the contracting parties are legally binding. According to Section 2(h), India`s Contracts Act defines a contract as a legally binding agreement. “Section 10-A: Validity of contracts concluded by electronic means. – In addition, Article 10 (A) of the Information Technology Act applies by recognizing the conclusion of the contract, acceptance, revocation in electronic form. After its execution, an electronic contract is stored/recorded by the parties in electronic form as an electronic record. It is not inapplicable simply because it is an electronic form. These provisions were applied and upheld by the Chennai High Court in Tamil Nadu Organic v State Bank of India (2019). The result of the electronic auction was upheld and the court stated that liabilities could arise from such contracts and electronic funds as long as the general principles of the contract were respected and enforceable under the law, as provided for in the Contracts Act.

Therefore, electronic contracts are largely legally valid and can be enforced in court. Is it possible to conclude contracts digitally? If so, how are digital contracts formed and are there exceptions for certain types of contracts? The majority of online contracts belong to the “click-wrap” type, which is a standard contract where all the conditions are already defined on the website or the software installation page and the party only has to click on the corresponding button to indicate its agreement with the conditions. There is no room for negotiation in standard contracts. There have been cases where courts (outside India) have found specific clauses in contracts to be unscrupulous and have been removed. As regards the situation in India, section 16(3) of the Indian Contracts Act provides that where one dominant party concludes a contract with another and the transaction appears unscrupulous at first sight or on the basis of the evidence presented, the burden of proof that the contract was not signed under pressure is on the dominant person. Are there certain laws that limit the choice of applicable law, the language of the contract or the place of disputes when entering into digital contracts? Do they distinguish between business-to-consumer contracts and business-to-business contracts? The most common forms of electronic contracting are click packaging, navigation packaging and shrink film contracts. The terms of these contracts are made available to the counterparty in a form materially different from standard paper contracts. In the click-wrap contract, the consent of the party is given by activating it on an “I accept” tab with the drop-down box that allows the accepting party to view the terms and conditions.