E-Contracts and the Applicability of the Contract Act, 1872 in the Digital Era

Abstract

The emergence of electronic contracts (e-contracts) has redefined the formation, execution, and enforcement of contracts in the digital age. In India, the legal framework governing e-contracts is primarily shaped by the Indian Contract Act, 1872 and supplemented by the Information Technology Act, 2000. However, the Contract Act—enacted in the 19th century—was not designed to accommodate the nuances of digital transactions, such as smart contracts, click-wrap agreements, and cross-border automated performance. This article critically examines the applicability of the Contract Act to e-contracts, exploring doctrinal challenges in offer, acceptance, consent, and consideration within digital environments. Through a comparative analysis of jurisdictions such as the United States, the United Kingdom, the European Union, and Singapore, the study highlights global best practices. It identifies key legislative and judicial gaps in the Indian context. The paper further examines the judicial responses in India and proposes targeted reforms to modernise the legal treatment of electronic contracts. Recommendations include legislative amendments, enhanced consumer protections, judicial specialisation, international harmonisation, and public awareness initiatives. The article concludes that without systematic legal reform, India risks undermining the enforceability and integrity of digital contracts, impeding both domestic innovation and international commercial engagement.