Question
Discuss the issues emerging from online contract. What are the legal remedies available to e-consumers in India?
Answer :
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Skip in 10
The growth of commerce in cyberspace has transformed traditional contracting practices into online contracts formed through electronic means. Online contracts, including click-wrap, browse-wrap and shrink-wrap agreements, facilitate speed, convenience and global reach, but they also give rise to several legal, technological and ethical issues. One major issue is the validity and enforceability of online contracts. Although Indian law recognizes electronic contracts under the Information Technology Act, 2000, questions often arise regarding free consent, as standard form online contracts are usually drafted unilaterally by service providers, leaving consumers with no real bargaining power. The “take it or leave it” nature of such contracts can undermine the principle of consensus ad idem, leading to disputes over unfair terms and conditions. Another significant issue relates to the identity and capacity of contracting parties. In cyberspace, it is difficult to verify whether the person entering into a contract is legally competent, whether the contracting party is genuine, or whether there has been impersonation or identity theft. This creates risks of fraud and challenges in fixing liability. Closely connected is the issue of jurisdiction and applicable law. Online transactions often involve parties located in different states or countries, making it complex to determine which court has jurisdiction and which legal system governs the contract. This uncertainty increases litigation costs and discourages
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