Electronic signature plays a key role in E-contracts. A digital signature [sp2] is an approach for authenticating an electronic message, software, or document. A digital file or symbol—such as a scanned pen-and-ink signature or a typed name—that someone attaches to or places on a contract or file to demonstrate that person’s intention to sign the contract or file is known as an e-signature[1].
Digital signatures, on the other hand, are more advanced and secure than electronic signatures[2]. To authenticate the signer, they use digital identification. The signature is then encrypted and electronically attached to the paper[3].
India’s laws recognise that digital signatures can be used to construct an electronic contract. It is critical to understand that the authenticity of an E-contract, as evidenced by an ‘electronic signature’[4], is recognised by the IT (Amendment) Act, 2008.
Electronic signatures are legally recognized under Section 5 of the IT Act[5]. An E-contract is documented in electronic form with the executing parties, i.e. in an electronic record after it is executed. The term “electronic record” is defined in section 2(t) of the IT Act[6]. The E-contract has legal status under the Indian Evidence Act of 1872[7].
The term “Evidence” is defined in Section 3 of the Evidence Act, which states that “all documents including electronic records produced for the inspection of the court are called as documentary evidence.”[8]
“The contract between the parties was unconditionally accepted through e-mails was a valid contract that satisfied the provisions of the ICA,” the Supreme Court of India concluded in Trimex International FZE Ltd., Dubai v. Vedanta Aluminium Ltd.[9].
As a result, the E-contract is valid and enforceable under the Indian Contract Act, the Information Technology Act, and the Indian Evidence Act, just like traditional contracts.[10]
Hence, E-contracts validity is all the more empowered by electronic signatures and makes it even more convenient.
