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Electronic contracts, by their very nature, are dynamic and often multi layered transactions. With a layered contract, agreement to a contract may not occur at a single point in time. There exist a chain of successive events – e-offer, e-acceptance, consideration etc., combination of which may lead to electronic contract formation. E-contract formation has not only given rise to many complexities but also raised certain critical legal issues. It is thus imperative to look into the following issues in view of the emerging law.

1 Capacity to Contract
To rely on an electronic message, the parties should take steps to make sure the contract is binding, e.g., that the essential terms of the contract are manifested, agreed upon, and that the persons who are parties to the electronic “contract” have the legal competence and capacity to enter into an agreement.

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