Legal Definitions - electronic contract

An electronic contract, often referred to as an e-contract, is a legally binding agreement formed and executed entirely through electronic means. Unlike traditional paper contracts that require physical signatures, an e-contract involves the presentation and acceptance of terms digitally, typically over the internet or through other electronic communication. These contracts are generally considered as valid and enforceable as their paper counterparts, provided they meet the fundamental requirements of a contract, such as offer, acceptance, consideration, and intent to create legal relations, all expressed electronically.

Here are some examples to illustrate electronic contracts:

• Online Purchase: Imagine a person browsing an online bookstore. They find a book they want, add it to their digital shopping cart, proceed to checkout, enter their shipping and payment information, and then click a button labeled "Complete Purchase" or "Place Order."

  This scenario forms an electronic contract. The bookstore's website presents an offer (the book at a specific price), and the customer accepts that offer by electronically submitting their order and payment details. The terms and conditions of sale, often linked on the checkout page, become part of this digital agreement.

• Software License Agreement: When a user downloads and installs a new mobile application or computer software, they are often presented with a "Terms of Service" or "End-User License Agreement" (EULA) that they must accept by clicking an "I Agree" or "Accept" button before they can proceed with the installation or use of the software.

  This is an electronic contract. The software provider offers a license to use their product under specific conditions outlined in the EULA. The user's electronic action of clicking "I Agree" signifies their acceptance of these terms, creating a binding agreement for the use of the software.

• Digital Service Subscription: A consumer decides to sign up for a cloud storage service. They visit the service's website, select a monthly plan, create an account, input their credit card details, and then click a button such as "Start Subscription" or "Sign Up Now," often after reviewing the service's privacy policy and terms of use.

  This constitutes an electronic contract. The cloud storage provider makes an offer for their service under certain terms (the subscription plan, pricing, and terms of service). The consumer accepts this offer by electronically providing their information and clicking the subscription button, thereby entering into a legally enforceable agreement for the digital service.