Cyber Law: Communication of Offer via Electronic Means

Electronic transactions in India are governed by the Cyber Law of India. However, the Information Technology Act is not an ultimate legislation for electronic transactions. The formations of contacts are still governed by the Contract Act. This includes electronic contracts. However, these two Acts complement each other.

The IT Act provides solutions to the issues emerging from the introduction of electronic communications. It forms a bridge between electronic communications and the Contract Act. Further, certain provisions of the Contract Act are altered, to fill in the gap.

Cyber Law: Inconsistency Between the IT Act and the Contract Act

Cyber Laws in India do not provide rules for any modifications in the Contract Act. However, such modifications have taken place by implications. Section 4 of the Contract Act stipulates that the communication of an offer is complete when it is brought in the knowledge of the offeree. An important question arises pertaining to the completion of communication of an offer made via electronic means.

One option is to consider the communication to be complete when the electronic record enters the computer resource of the addressee/offeree. Section 13 of the IT Act provides that the receipt of an electronic record occurs when it enters the computer resource of the addressee. However, it is likely that the offer (electronic record) may enter the computer resource of the offeree (addressee) without his knowledge.

An alternative is to consider the communication of the offer to be complete when an acknowledgement is received by the offeror. It can be argued that the acknowledgement is proof that the offeree is aware of the offer. However, this provision can be countered, as the offeree may not be aware of the offer. He may have sent the acknowledgement by using an automated system, along with other messages.