Digital Contracts and E-Signatures - Legal Validity and Enforcement under Indian Contract Law

 

Digital Contracts Under Indian Law

Digital contracts hold the same legal status as traditional paper-based agreements in India, provided they meet the essential elements of a valid contract. These essentials include a lawful offer and acceptance, lawful consideration, the capacity of parties to contract, free and genuine consent, a lawful object and the agreement not being expressly declared void. Indian law does not mandate that a contract must be in written or physical form unless required by specific statutes. This means that agreements formed through electronic means such as emails, digital platforms or mobile applications are legally valid and enforceable, as long as they satisfy the foundational requirements of a contract.

This legal recognition facilitates seamless and efficient contracting in the digital age, without compromising on legal certainty. While the Information Technology Act recognizes contracts formed through electronic means, the absence of a digital signature places the burden of proof on the party asserting the contract’s validity to prove its authenticity and enforceability.


Electronic Signatures (E-Signatures)

In India, the provisions of the IT Act and the Indian Contract Act 1872 govern digital contracts, additionally the Bharatiya Sakshya Adhiniyam, 2023 has modernized the evidentiary framework to effectively accommodate the realities of the digital age, including the growing use of digital contracts. Under Sections 61 and 63 of the Bharatiya Sakshya Adhiniyam, 2023, digital contracts executed and stored electronically are legally recognized as admissible evidence, provided certain conditions are met. The law treats such electronic records as valid documentary evidence, even in the absence of a physical original, as long as the integrity and authenticity of the record can be established.

Want to know more check the below link- https://uja.in/blog/legal-chronicle/digital-contracts-and-e-signatures/


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