Cyber Contract

  • E-Commerce is defined as any form of business transaction in which the parties interact electronically rather than by physical exchanges. It covers mainly two type of activities:

1.Electronic ordering of tangible goods, delivered physically using traditional channels such as postal services

2.Direct electronic commerce including the online ordering, payment and delivery of intangible goods and services such as computer software, entertainment content or, information services.

  • As per the IT Act (2000), in India, it is the provision of legal recognition for transactions carried out by means of electronic data interchange and other means of electronic communication, to facilitate electronic filing of documents with the government agencies and further.


  • E-Contract is any agreement which is entered on internet by competent parties, with lawful consideration, free consent, without any hidden motive and to create legal relationship. E-Contracts are also referred as ‘cyber-contract’ or ‘digital contract’ or ‘online contracts’.
  • The parties involved in e-Contracts may include; business, consumer, governments, administration etc. Broadly e-Contracts can be characterized as below:

1.Business-to-Business (B2B)

2.Business-to-Consumer (B2C)

3.Consumer-to-Business (C2B)

4.Consumer-to-Consumer (C2C)

Types of Electronic Contracts

  • e-Contracts usually requires user to scroll through terms and conditions and to expressly confirm the user’s agreement to the terms and conditions by taking some action, such as clicking on a button that states “I Accept” or “I Agree” or some similar statement, prior to being able to complete the transaction. “Click-Wrap,” “Click-Through,” or “WebWrap” are example of these types of contracts. Click-Through contracts are often found in software products or on Web sites.
  • “Browse-Wrap” contracts are terms and conditions of use that to do not require the express agreement of a user. They are often located in software or are posted on a Web site typically as a hyperlink at the bottom of the screen and may make some statement that indicates use of the software or Web site constitutes the user’s agreement to the terms. Often such terms may not have been brought to the attention of the user.
  • “Shrink wrap” contracts are license agreements or other terms and conditions which can only be read and accepted by the consumer after opening the product. Usually a shrink wrap contract is the prior license agreement enforced upon the buyer when he buys software. The license, which is shrunk and wrapped in the product, becomes enforceable and taken as consent before the buyer tears the package. This is done to protect the interest of the manufacturer and to prevent the reproduction, copy or unauthorized use of the software.

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