Unit 3.pdf

Online contracts have several emerging issues, including capacity to contract, where parties must ensure the contract is binding and the persons involved have the legal competence to enter into an agreement. The Indian Contract Act, 1872, states that a person must be of the age of majority, of sound mind, and not disqualified by law to be competent to contract. Minors are not competent to contract, and any online contract entered into by a minor is void.

Other issues include the E-mail Box Rule, where e-mail communication falls under the postal rule, and a contract comes into existence when the acceptor puts their acceptance into transmission. Electronic authentication, choice of law, and choice of forum are also critical issues in online contracting. Additionally, the doctrine of acceptance by silence, unconscionable license terms, mandatory arbitration clauses, and automated contracts are important considerations.

Capacity to contract refers to the legal competence of parties to enter into a binding agreement, which is a crucial aspect of online contracting. Service providers must incorporate clauses to protect their interests, such as requiring parental consent for minors, to avoid issues with void contracts.