E-Contract Explained

The new innovations and technologies are resulting in changing the lives of people for their betterment, security, and ease. Advancements in the fields of computer technology, software, information technology are upgrading in an unimaginable way. Information can be shared and received nationally and internationally with more speed than ever before. These offer flexibility to the business organizations in terms of time, space, place and payment. This has given rise to the e-commerce industry, where information, products and services can be bought and sold via computer networks. In basic words, it is the method of transacting business electronically, generally, over the internet. With the growth of e-commerce, there is fast growth in the use of E-Contracts.

What Are E-Contracts?

Whether it is buying a product from the market or renting a taxi or buying an airline ticket we are directed by contracts in our daily lives. Some of these contracts, we are aware of and some we unknowingly become a part of. Contracts have become so common in our day-to-day life that most of the time we do not even recognize that we have entered into one. Today, from the signing of an international agreement over the internet to buying a product online, everything constitutes an e-contract.

E-Contract is any kind of contract created by the interaction and consent of two or more individuals using electronic mediums. In an e-contract, offer and acceptance, etc. are all done by electronic means, which leads to an agreement. E-contract is created and signed electronically. The contract may have been written in Microsoft Word, but instead of printing it out, it is emailed to the other person, and they sign it electronically and email it back.

An e-contract is a contract that is created, defined, executed and used by a software system. Electronic contracts are discovered in the need of ease, speed and efficiency. The concept of E-contracts is very similar to traditional (paper-based) contracts. Principles and plans of traditional contracts also apply to electronic contracts. The only extra factor it has is the digital mode through which the contract takes place like the internet. It offers the seller an opportunity to reach all consumers directly, without involvement of any middlemen.

E-contracts are formed when you click the ‘I Agree’ button over the internet. Consumers or buyers click that button at the bottom of a page which contains the long document of terms and conditions of the license before you download the app, listen to music or start using a program, etc.

Merchants present their products, the prices and terms to the buyers. Buyers examine their options, negotiate prices and terms, if possible, then place their orders and make payments. After that, the merchants deliver the purchased products. This agreement between the merchant and the buyer when made electronically is known as E-Contract.

Conclusion:

In the present time, with the increase in the number of people using internet, e-contract is growing. The growing trend of debit and credit cards and internet banking will additionally support this growth. E-Contracts saves time, reduces cost, fastens customer response and improves service quality by reducing paperwork which increases automation. The objective of E-contract also includes avoiding any fraud and mistake in the contract, as it excludes human error.