Presented by Jayesh Sir, Assistant Professor

B.K.Mercanitle Bank law college

 THE INDIAN CONTRACT ACT, 1872
• Consist of chapter 10, section 238.
Historical background:
• The history of the Act brings to light the very origin of the economic processes and in this
regard, the importance of contracting in order to conduct one’s business in everyday life.
• The prevalent system in the ancient times was barter and it was based on the mutual principle
of give and take. This was confined to commodities as there was no medium of exchange as is
seen in the form of money today and this system can be traced back in time to the Indus Valley
Civilization (the earliest human civilization). The system still finds relevance in the
contemporary world, where it can be found in commercially and economically underdeveloped
areas.
• However, the relevancy of such a system in modern times is questioned as the complexity in
the nature of the economic systems as well as the increasing demand and supply systems due to
the change in the wants and needs of the human beings came to the fore. Also, money had
evolved as the medium of exchange such that the value of every commodity could now be
quantified. Thus, in such an era of greater economic transaction one finds the existence of
Contract Laws and with it, their relevance.
• The Indian Contract Act brings within its ambit the contractual rights that have been granted to the citizens of
India. It endows rights, duties and obligations on the contracting parties to help them to successfully conclude
business- from everyday life transactions to evidencing the businesses of multi-national companies. The Indian
Contract Act, 1872 was enacted on 25th April, 1872 and subsequently came into force on the first day of
September 1872.
• The essence of the India Contract Act has been modeled on that of the English Common Law. It is one of the most
important legislation ever drafted by Britishers and the principles enacted therein are nothing but the codification
of the general principle governing transactional relationship because of which it has seen seldom amendments.

• Before the act was enacted , the contractual relationship was governed by the personal laws of different religious
communities like different laws for Hindu and Muslims. Now, to understand the contract act in its present form
we have to analyze the historical evolution of contract law taking into account the practices that were prevalent
before the enactment came.
• The Indian Contract Act codifies the way we enter into a contract, execute a contract and implement provisions of
a contract and effects of breach of a contract. The contractual capacity is restricted in certain situations otherwise
it is the prerogative of the individual to contract. There are specific areas which deal with property, movable gods
and specific performance such as the Transfer of Property Act, The Sale of Goods Act and The Specific Relief
Act. Some of these acts, were originally a part of the Indian Contract Act enacted in 1872 but were later codified
as separate laws.
 3.Communication, acceptance and revocation
of proposals:
• The communication of proposals, the acceptance of proposals,
and the revocation of proposals and acceptances, respectively,
are deemed to be made by any act or omission of the party
proposing, accepting or revoking by which he intends to
communicate such proposal, acceptance or revocation, or
which has the effect of communicating it.
 4. Communication when complete:
• The communication of a proposal is complete when it comes to the knowledge
of the person to whom it is made.
• The communication of an acceptance is complete,— as against the proposer,
when it is put in a course of transmission to him, so as to be out of the power of
the acceptor; as against the acceptor, when it comes to the knowledge of the
proposer.
• The communication of a revocation is complete,— as against the person who
makes it, when it is put into a course of transmission to the person to whom it is
made, so as to be out of the power of the person who makes it; as against the
person to whom it is made, when it comes to his knowledge.
 Illustrations
• (a) A proposes, by letter, to sell a house to B at a certain price. The
communication of the proposal is complete when B receives the letter.
• (b) B accepts A’s proposal by a letter sent by post. The communication of the
acceptance is complete, as against A when the letter is posted; as against B,
when the letter is received by A.
• (c) A revokes his proposal by telegram. The revocation is complete as against A
when the telegram is despatched. It is complete as against B when B receives it.
B revokes his acceptance by telegram. B’s revocation is complete as against B
when the telegram is despatched, and as against A when it reaches him.
 5. Revocation of proposals and acceptances:
• A proposal may be revoked at any time before the communication of its
acceptance is complete as against the proposer, but not afterwards. An acceptance
may be revoked at any time before the communication of the acceptance is
complete as against the acceptor, but not afterwards.
• Illustration
• A proposes, by a letter sent by post, to sell his house to B.
• B accepts the proposal by a letter sent by post.
• A may revoke his proposal at any time before or at the moment when B posts his
letter of acceptance, but not afterwards.
• B may revoke his acceptance at any time before or at the moment when the letter
communicating it reaches A, but not afterwards.
 6. Revocation how made
• A proposal is revoked—
• (1) by the communication of notice of revocation by the proposer to the other
party;
• (2) by the lapse of the time prescribed in such proposal for its acceptance, or, if
no time is so prescribed, by the lapse of a reasonable time, without
communication of the acceptance;
• (3) by the failure of the acceptor to fulfil a condition precedent to acceptance; or
• (4) by the death or insanity of the proposer, if the fact of his death or insanity
comes to the knowledge of the acceptor before acceptance.
 7. Acceptance must be absolute:
• In order to convert a proposal into a promise, the acceptance must—
• (1) be absolute and unqualified;
• (2) be expressed in some usual and reasonable manner, unless the proposal prescribes
the manner in which it is to be accepted. If the proposal prescribes a manner in which it
is to be accepted, and the acceptance is not made in such manner, the proposer may,
within a reasonable time after the acceptance is communicated to him, insist that his
proposal shall be accepted in the prescribed manner, and not otherwise; but if he fails to
do so, he accepts the acceptance.
• 8. Acceptance by performing conditions, or receiving consideration.—Performance of
the conditions of a proposal, or the acceptance of any consideration for a reciprocal
promise which may be offered with a proposal, is an acceptance of the proposal.
• 9. Promises, express and implied.—In so far as the proposal or acceptance of any
promise is made in words, the promise is said to be express. In so far as such proposal
or acceptance is made otherwise than in words, the promise is said to be implied.
 10. What agreements are contracts:
• All agreements are contracts if they are made by the free consent of parties
competent to contract, for a lawful consideration and with a lawful object,
and are not hereby expressly declared to be void.
• not hereby expressly repealed by which any contract is required to be made
in writing or in the presence of witnesses, or any law relating to the
registration of documents.
11. Who are competent to contract:
• Every person is competent to contract who is of the age of majority
according to the law to which he is subject , and who is of sound mind,
and is not disqualified from contracting by any law to which he is
subject.
 12. What is a sound mind for the purposes of
contracting:
• A person is said to be of sound mind for the purpose of making a contract, if, at
the time when he makes it, he is capable of understanding it and of forming a
rational judgment as to its effect upon his interests. A person who is usually of
unsound mind, but occasionally of sound mind, may make a contract when he
is of sound mind. A person who is usually of sound mind, but occasionally of
unsound mind, may not make a contract when he is of unsound mind.
• Illustrations:
• (a) A patient in a lunatic asylum, who is at intervals of sound mind, may
contract during those intervals.
• (b) A sane man, who is delirious from fever or who is so drunk that he cannot
understand the terms of a contract, or form a rational judgment as to its effect
on his interests, cannot contract whilst such delirium or drunkenness lasts.
An Agreement
• An Agreement can be defined as an acceptance of an offer given by
one party to another. Every promise and set of promises that form any
type of consideration for all the parties involved is called an
agreement.
• Here, promise refers to the acceptance of an offer or proposal. The
agreement comes into existence when an individual or an entity makes
an offer or proposal to a second individual or entity, and the latter
accepts that offer with all the required conditions.
• (Agreement = Offer + Acceptance)
• Section 2(e) of the Indian Contract Act, 1872 defines an agreement as,
“Every promise and every set of promises, forming the consideration
for each other, is an agreement.”
 The two main features of an agreement
are:
• Two or more parties: A minimum of two persons or entities should be there to
get into an agreement. A single person or entity cannot get into an agreement.
• Consensus ad-idem: It is a Latin word that means ‘Meeting of Minds’. It
further implies that all the parties involved in an agreement should agree upon
the same thing in the same way as it meant.
• Example: Bijay offers to sell his Car to Kashish for Rs 2,00,000. So, when
Kashish accepts the offer, it becomes an agreement.
 Contract:
• A Contract can be defined as an agreement that is enforced by law
involving at least two parties, as such one party is entitled with some
right and the other with some obligation. An agreement is said to be
a contract when it is abided by the law. It means that legal obligations
must be led by a contract.
• Section 2(h) of the Indian Contract Act, 1872 defines a contract as,
“an agreement enforceable through the law.”
• Contract = Agreement (Offer + Acceptance) + Enforceable by
Law.
According to;
• Pollock- “Every agreement and promise enforceable by law is a contract”.
• Salmond- “A contract is an agreement creating and defining obligation between
two or more persons by which rights are acquired by one or more to acts or
forbearance on the part of others”.
• Anson- “The law of contract is that branch of law which determine the
circumstances in which a promise shall be legally binding on the person making
it’.
• Therefore an agreement consists of reciprocal Promises which are to be
performed by parties to the contract. Promises are reciprocal when both parties
have to perform something for the other.
 The two main features of a contract are:
• An agreement: An acceptance of an offer given by one party to another is
called an Agreement.
• Abided by law: A contract should create some legal obligation or duty.
• Example: A multiplex sells a ticket on 1st January 2022 to Gaurav for a movie
show. The Multiplex is under an obligation to organize a movie show on the
given date. In case, the Multiplex fails to fulfill its promise, Gaurav can take
legal action against the multiplex owners. Thus, Gaurav has a right against the
Multiplex, and a corresponding duty is imposed on the Multiplex.
• A contracted with B for purchase of 10 bags of cement of a certain quality, for
Rs 1, 00,000. In this case, B’s promise is to provide A with 10 bags of cement of
that quality only for which A has contracted and A’s promise is to duly pay B
Rs.1, 00,000. In this case, both have to perform something for the other, thus it is
a case of reciprocal promise.
 Basis Agreement Contract
The meaning of agreement can be understood as an A contract can be defined as an agreement that is
Meaning
acceptance of an offer given by one party to another. enforced by law.

Section 2(e) of the Indian Contract Act, 1872 defines an Section 2(h) of the Indian Contract Act, 1872
Definition agreement as, “Every promise and every set of promises, defines a contract as, “an agreement enforceable
forming the consideration for each other, is an agreement.” through the law.”

Elements Agreement = Offer + Acceptance Contract = Agreement + Enforceable by Law

Written Form The agreement can not necessarily be in written form. A contract is normally written and registered.

A contract has a narrower scope as compared to an

Scope An agreement has a wider scope than a contract.
agreement.
It involves a higher risk factor because it is not enforceable A contract is abided by the law, so it ensures a
Risk
by law. low-risk factor.
One in Another All agreements cannot be considered a contract. All contracts can be considered an agreement.
Legal
An agreement does not create a legal obligation. Contracts are meant to create a legal obligation.
Obligation
There should be some consideration to form a
Consideration Agreements can be formed without consideration.
contract.
 Essentials elements of a valid contract
• the Indian Contract Act, 1872 defines contract as an agreement between two or
more parties for the buying/selling of goods or services for a valid
consideration. The essentials to a valid contract are also some of the essentials to
an e-contract which are:
1.An offer and acceptance has to be made.
2.There should be a lawful consideration.
3.There should be a free consent between the parties to a contract.
4.The object of the agreement should be lawful.
5.Parties must be competent enough to contract.
6.The contract must be enforceable by law.
• Section 10 states conditions which are required for a contract to be valid.
• Offer: Firstly, there must be an offer from either party, without an Offer a
contract cannot arise. However, in some cases, this principle could not be
applied. For instance, Mulla talks about a situation in which offer and
acceptance could not be traced, for instance, a commercial agreement reached
after multiple rounds of negotiations.
• Acceptance of the offer: Secondly, the Offer must be accepted and accepted by
the person to whom it was intended. So an offer by A to B has to be accepted by
B only.
• Acceptance in ad-idem: Thirdly, though acceptance is important, there must
be“Consensus ad-idem”.
• Consensus ad-idem means meeting of minds. It means that parties to the
contract should accept the terms of the contract in the “same sense”. Thus
parties to the contract must have the same understanding of the terms of the
contract.
• E.g. A contracted with B to purchase rice. Now A wanted a special type of
rice, however, B thought of it to be normal rice. In this case, although there is
a valid acceptance but there lacks meeting of minds between the parties;
meeting of minds concerning the type or quality of rice.
• Similarly, if A contracted with B to buy stocks. What A meant was stocks in a
company, whereas B understood it to be his livestock (farm animals). In this
case, the understanding was not in a similar sense.
• Parties must be competent to contract, under the laws they are subjected to i.e.
they must be legally capable to contract
• Consideration, for the performance of promises there must be a consideration.
something given for performance of promise from both parties to the contract.
• Further, the objective and consideration of the contract must be lawful.
• Free consent, according to section 10 of contract act” agreements are
contracts if they are made by free consent” It means that contract must be
entered into out of parties own volition and without being forced, or deceived
into.
• There must be an intention to enter into a legal relationship.
• Certainty, Contract must be certain and not ambiguous and vague. (Section
29)
• A contract must not be expressly declared void. (Section 10 of Contract Act)
Consideration:
• Consideration means value given for the performance of a promise. It need not
necessarily be money, however, it should be something which has been agreed by the
parties and has some value.
• Usually, a contract without consideration is void.
• Consideration could be:
• Past Consideration, when the promisor has received consideration before the date of
the performance of the contract by any party. Eg. Advance money paid.
• Present Consideration, when consideration is provided immediately when the
contract is made or executed. Thus it is also called “executed consideration.
• Future Consideration, when consideration is paid after making of the contract.
Inconsideration given for ‘construction contracts’-Constructed building is given after
the execution of the contract.
 Free consent:

• According to section 10 of the contract act, a contract is valid if it was

entered into by free consent of the parties.
• Section 14 of the contract act defined free consent as consent not given
under coercion, undue influence, fraud, misrepresentation and mistake.
• The general averment that consent was not free is not maintainable. It must
be proved that consent was vitiated by any of the 5 elements mentioned in
section 14.If consent manifests any of such elements then the contract is
voidable at the option of the party whose consent was obtained.
Coercion (Section 15)
• This section defines coercion as committing any act forbidden by The
Indian Penal Code1860 or unlawful detaining of property, or threatening to
commit these acts. Coercion includes all such acts which are forbidden by
the Indian Penal Code. It also includes threatening to commit any act
forbidden by the code.
• Further section 15 says that it also includes unlawfully detaining the
property of any person or threatening to detain such property, which will
harm the other person. Such an act would amount to coercion only when the
act has been committed with the intention to enter into an agreement.
• Mere threat of bringing a criminal charge does not amount to coercion, as it
is not per se forbidden by the Penal Code. But threat of bringing a false
charge with the object of making another do a thing is coercion, because
false charge is punishable under IPC.
• Section 15 says that acts amounting to coercion must be to the prejudice of the
other. It means that the act of coercion must be harmful to the other person,
thus some legal injury must flow in order that a person may be said to have
been prejudiced.
• Illustration: A husband threatens his wife that he will commit suicide unless
she releases a property. This amounts to coercion to the prejudice of the wife.
Similarly threatening to divorce or to take care of wife and because of this she
is made to sign a contract also amounts to coercion
 Undue influence

• According to section 16 if consent has been obtained by a person who is in a

dominant position compared to the other person, then it is undue influence. Thus
one person must be able to dominate the will of the other person for exercise of
undue influence. Eg an employer-employee relationship, Doctor-patient
relationship
Fraud
• it means an act done to deceive the other person whether to get any
advantage from the other person or because of ill-will or enmity
towards the other party.
• According to section 17, Fraud can be committed either by one
contracting party or by 3rd person with the connivance of any
contracting party or by the agent of any contracting party.
 Misrepresentation
• When false statements are innocently made without the intention to deceive,
then it amounts to misrepresentation. In misrepresentation, the person making
the statement is innocent and has no intention to deceive the other party.
 Capacity
• As per, section 10 of the contract act, an agreement is a contract if it is made
among other essentials, by free consent of parties who are competent to
contract. People who are of the age of majority (i.e. above 18 years of age) and
are of sane mind, and are not disqualified to contract by any law to which such
person is subjected to, are competent to contract.
• Thus a minor or a person with an unsound mind is not competent to contract or
if such person has been barred from contraction by laws to which he is
subjected. In such a case the contract is void
• Minor: A contract, entered into with or by a minor is void-ab-initio, i.e. no
obligation shall arise since its inception.
?
 Unsound Mind:
• According to section 12 a person is said to be of sound mind if at the time of the
making of the contract he is capable of understanding it (understanding its terms)
and is capable of forming a rational opinion about the effects thereof upon his
interests(i.e. capable of understanding its consequences).
• A person need not be lunatic, he should be simply incapable of understanding the
consequences of the contract. Thus a person who does not understand a particular
trade or business, and despite that enters into a contract relating to the business, in
such cases the court will hold the person to be of unsound mind.
 Void contracts
• Section 2(j) says that a contract that ceases to be enforceable by law is void from
the moment it becomes unenforceable. The term “void” in law means “not
legally binding” or “invalid.
• A contract becomes void when it is unable to fulfil the conditions mentioned in
Section 10.
• Thus, when parties are incompetent to form a contract, like minors or people of
unsound minds, then the contract becomes void.
• Further, the impossibility of performance also makes contracts void.
 Apart from the above, the following are certain
other conditions of void contracts:
1.Section 20 states that an agreement becomes void when there is a mistake of fact
concerning an essential facet of the agreement. It is important to note that a mistake of
law does not make a contract void nor does a one-sided mistake make it void.
2.According to Section 24, a contract with an illegal object or consideration is void.
3.Section 25 states that an agreement without consideration is void unless it is in writing
and registered, or is a promise to compensate for something done or is a promise to
pay for a debt barred by limitation law.
4.Section 26 says that agreements in restraint of marriage are void.
5.Section 27 says agreements in restraint of trade are void.
6.Section 28 makes a contract void if it is in restraint of legal proceedings.
7.Section 29 makes a contract void if the meaning of the agreement cannot be made
certain
• Voidable contracts
• Voidable contracts are those contracts that can be made void on the
will of one of the parties. In these scenarios, generally, consent is not
free and it is obtained under coercion (Section 15), undue influence
(Section 16), fraud (Section 17) and misrepresentation (Section 18).
Here, the party defrauded or unduly influenced has the option to make
the contract void.
• Void-ab-initio contracts
• They are a special type of void contract that means “void from the
very beginning”. In essence, void-ab-initio contracts are those
contracts that never existed from the moment of their inception. The
most common example of a void-ab-initio contract is the one made by
a minor. In Mohori Bibee v. Dharmodas Ghose (1903), it was declared
conclusively that minor contracts are void-ab-initio.
Introduction:
• Contracts have become a part and parcel of our lives. Be it buying a
product from the market or hiring a taxi, we are governed by contracts
in our daily lives of which some we know and some we unknowingly
become a part of.
• In today’s times, everything from shopping a product online to the
signing of an international treaty over the internet constitutes an e-
contract.
• In an e contract the offer, invitation to offer, counter offer or
acceptance etc. are all by electronic means and such a communication
leads to an agreement.
• Generally, E-commerce is a way to conduct business in total using the internet as a
medium.
• According to Hemant Goel's book on Law and Emerging Technology, Cyberlaw, E-
commerce is the directing of exchanges using a proper system of computers, and
telecommunication i.e. internet. He also mentioned in his book that it is a transfer of
goods or services via the internet, and a monetary consideration for them.
E-commerce refers to all forms of commercial arrangement containing groups,
institutions, companies, or persons that are based on the working and transmission of
digitized data or records, including faxes or text messages, voice or sounds, and
images.
E-commerce or electronic commerce or EC refers to the buying or selling of goods,
products, or services on the internet. Also, transferring money for some purpose or
data via the electronic platform, fundamentally the internet.
• These business exchanges mainly happen in four such ways. Like business-to-
business, that is B2B, business-to-consumer that is B2C, consumer-to-consumer that
is B2C, or consumer-to-business that is C2C.
What is E- Contract?
• An E-contract(that are not paper-based rather they are electronic based) is a kind
of contract formed in the course of e-commerce by the exchange of two parties
using electronic means, such as e-mail, telephones, faxes.
• The interaction of an individual should happen with an electronic agent, such as
a computer program, website forms like telephonic discussions, or an exchange
of at least two electronic agents that are organized to allow the existence of a
contract.

• An E-contract is a contract shaped, specific, executed, and expand by a software

system.
Who is a party?
 The 2 main parties to an e-contract are:
•
The Originator and the Addressee.

• An Originator, as per the IT Act, 2008, states that it is a person who sends,
generates, stores, or transmits any electronic message to be sent, generated,
stored, or transmitted to some other person, and does not, include any
Intermediary.
• An Addressee, as per the IT Act, 2008, states that it is a person who is intended
by the originator, to receive the electronic record, but does not, include any
Intermediary.
Recognition of E-contracts
• Section 10 of the IT Act, 2008 gives legislative authority to E contracts.
• It says that, “Where in a contract formation, the communication of proposals, the
acceptance of proposals, the revocation of proposals and acceptances, as the
case may be, are expressed in electronic form or by means of an electronic
record, such contract shall not be deemed to be unenforceable solely on the
ground that such electronic form or means was used for that purpose.”
• For any contract to be valid, signatures from both the parties are required.
• In the case of an e-contract, an electronic signature comes to play.
• An electronic signature is defined by the Information Technology Act, section
2(p) as the authentication of any electronic record by a subscriber by means of
the electronic technique specified in the second schedule and it includes a
digital signature.
• Further, section 5 of the Information Technology Act says that where any law
requires that information or any other matter be authenticated by affixing a
signature or any document signed by or bear the signature of any person, then
such requirement shall be deemed to have been satisfied.
• Electronic signature serves the same purpose as a handwritten signature.
Section 85 c of The Indian Evidence Act states that as far as a digital signature
is concerned, the courts presume that the information provided in that
certificate is true and correct.
• E contracts are contracts that are not paper based and are electronic in nature.
• These contracts are generally made for speedy entering into a contract or for the
convenience of the parties. They are best made between parties who live in 2
different parts of the world and have to enter into an agreement.
• A digital signature is all they need to enter into a contract as a party even
though both the parties to the contract are sitting miles away from each other.
• In this proliferating world, it is the most convenient method to enter into a
contract without being physically exhausted.
• The 2 main parties to an e-contract are- The Originator and the Addressee.
• Originator according to the IT Act, 2008 is a person who sends, generates,
stores or transmits any electronic message to be sent, generated, stored or
transmitted to any other person and does not include an Intermediary.( In the
present context, the person who initiates the process of making an e-contract to
send it to the other party.)
• An Addressee according to the IT Act, 2008 is a person who is intended by the
originator to receive the electronic record but does not include any
Intermediary.(In the present context, the party which receives the e-contract
made by the other party.)
 Nature Of E-Contracts
1.The parties do not meet each other physically.
2.There are no physical boundaries set.
3.No handwritten signature is needed. It should be an electronic agent.
4.Since there is no full security, the risk factor is very high in such contracts.
5.Jurisdictional issues are a great setback on e-contracts in case of any sort of
breach.
6.There is no single authority to look into the whole process exclusively in shrink-
wrap contracts.
7.Digital Signatures and electronic records are used as evidence when any case
arises in court.
 The subject matter includes:
A.Physical goods, where goods are ordered on an online platform and payment
is made via the internet, and delivery is made physically.
- For example, Amazon or Flipcart.
A.Digital products like software can be ordered.
B.Services like electronic banking, financial advice, etc are also subject matters.
 Electronic Signatures
• In the world of Electronic Contracts, the ancillary feature that has gained
tremendous prominence is the Digital signature or the Electronic Signature.
• The degree of acceptance of a Digital Signature is at varying levels across the
globe, so it is essential to ensure the validity of E- Signature ahead of execution
of any International Contract digitally. The rendering of the signature which is
done by the click of a button or through checking a box digitally is called an
electronic signature.
• Electronic signatures are proffered digitally, which is, unconventional in
comparison to the traditional Wet Signature. Information Technology Act, 2000
recognizes the legal validity of a Digital Signature Certificate (DSC) under
Indian Law.
Include in email/ Digi locker etc….
 E contracts can be broadly categorized into :
1. Shrink Wrap Agreements
2. Clickwrap Agreements
3. Browse Wrap Agreements
4. Scroll Wrap Agreements
5. Sign-In Wrap Agreements
1. Shrink Wrap agreements are those which can only be read and accepted by the
consumer after the opening of a particular product.
- The term is described after the shrink wrap plastic wrapping that is used to cover
software or other boxes.
Ex: Installing software from a CD into your PC is an example of a shrink wrap
agreement.
• Shrink Wrap agreements are the End User License Agreements (EULA) or Terms
and Conditions, which are packaged with the products.
• The technique of enclosing the product in a plastic wrap is called Shrink Wrap
which declares that the customer purchasing it is bound by the EULA. Usage of
the product is deemed acceptance by the user.
• Interestingly, the acceptance is by default once the product is purchased along
with the packaging being ripped and utilized. An example of Shrink Wrap
Agreements is Software Drives.
 2. Clickwrap agreements
• Clickwrap agreements are a form of agreement used for software licensing, websites, and
other electronic media. When the user logs in to a website the terms and conditions or the
privacy policies of the website are to be accepted by the user as legal consent.
• Though the user is intimated in this method about the existence of certain terms and
conditions and is required to accept the same, there is no power of negotiation. The user
clicks “I Agree” to be bound by the legal obligations.
• Some prominent examples of Click Wrap agreements are Amazon, Flipkart, and Make
My Trip.
• Click Wrap agreements are mostly found in the software installation process. The user
has to click either ‘Accept’ or ‘Decline’ to accept or reject the agreement respectively.
• These agreements lack a certain amount of bargain power. Choosing to make payments
online or choosing to reject it is an example of using a click wrap agreement.
 3. Browse Wrap Agreements
• Browse Wrap Agreements are online contract or license agreements commonly
used in website notices or mobile applications.
• The terms and conditions are provided in a ‘Hyperlink’ in some part of the
website which is not beforehand intimated to the user.
• There is no procedure to assent or reject the Terms and Conditions. At the onset,
when the user is aware of such terms they can scroll down and double click on
the terms and conditions to have a complete view of the same.
4. Scroll Wrap Agreements:
• The Scroll Wrap Agreements require the user to scroll down the
License Agreements, implying that it has been read by the user by
scrolling down through the terms and conditions before they can give
their assent or rejection.
5. Sign-In Wrap Agreements:
• The Sign-In Wrap agreement is a kind of E-Contract in which once
the end-user has signed into an online service or signs in to use a
product the acceptance is acquired.