Law of E-Commerce & Contractual Obligation in India Definition of E-Commerce E-Commerce v. E-Business Definition of Commerce Contracts & Business done Online

1. Doing Business in the
Information Age
By,
MOHAMMED HAROON RASHEED
B.A.LL.B (Hons.), [BSW] & [LLM]
Advocate
Email ID: adv.mdharoon@gmail.com
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(c)2013 MD HAROON RASHEED, ADVOCATE

2. Definition of Commerce
► The exchange of goods and services for
money
► Consists of:
Buyers - these are people with money who
want to purchase a good or service.
Sellers - these are the people who offer
goods and services to buyers.
Producers - these are the people who create
the products and services that sellers offer to
buyers.
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3. E-commerce vs. E-business
►E-commerce is about doing business
electronically
►E-commerce conducting financial
transactions electronically
►E-business is conducting business on the
Internet
►E-business is the transformation of
business processes through the Internet
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4. Electronic Commerce:
Definition
E- Commerce
The process of buying, selling, or exchanging
products, services, or information via computer
networks
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5. Electronic- Business:
Definition
E-Business
A broader definition of EC that includes not just the
buying and selling of goods and services, but also
servicing customers, collaborating with business
partners, and conducting electronic transactions
within an organization
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6. Four Categories of E-Commerce
B2B
B2C
C2B
C2C
Consumers
Business
And
selling
to...
Business originating from...
Business Consumers
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7. Distinct Categories of E-Commerce
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 Business to Business (B2B) refers to the full spectrum of e-
commerce that can occur between two organizations.
This includes purchasing and procurement, supplier
management, inventory management, channel management,
sales activities, payment management &service and support.
Examples: Free Markets, Dell and General Electric
 Business to Consumer (B2C) refers to exchanges between
business and consumers, activities tracked are consumer
search, frequently asked questions and service and support.
Examples: Amazon, Yahoo and Charles Schwab & Co
(c) MD HAROON RASHEED, ADVOCATE

8. Distinct Categories of E-Commerce
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 Peer to Peer (C2C) exchanges involve transactions
between and among consumers. These can include third
party involvement, as in the case of the auction website
Ebay.
Examples: Owners.com, Monster
 Consumer to Business (C2B) involves when
consumers band together to present themselves as a
buyer in group.
Example: www.planetfeedback.com
(c) MD HAROON RASHEED, ADVOCATE

9. Advantages of Electronic
Commerce
► Electronic commerce can increase sales and decrease
costs
► If advertising is done well on the Web, it can get a
firm’s promotional message out to potential customers
in every country
► Using e-commerce sales support and order-taking
processes, a business can:
 Reduce costs of handling sales inquiries
 Provide price quotes
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10. Advantages of Electronic
Commerce
► It increases purchasing opportunities for buyers
► Negotiating price and delivery terms is easier
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11. Disadvantages of Electronic
Commerce
► Perishable grocery products are much harder to
sell online
► It is difficult to:
 Integrate existing databases and transaction-
processing software into software that enables
e-commerce
► Cultural and legal obstacles also exist
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12. Disadvantages of Electronic
Commerce
► Identity and capacity of seller or buyer
► Authenticity of offer and acceptance (digital
signatures)
► When and where contract formed
► Governing law
► Terms and conditions (click through)
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13. Limitations of E-commerce
► To organizations: lack of security, reliability,
standards, changing technology, pressure to
innovate, competition, old vs. new technology
► To consumers: equipment costs, access costs,
knowledge, lack of privacy for personal data,
relationship replacement
► To society: less human interaction, social division,
reliance on technology.
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14. The Three Basic Genre
►Generally the basic forms of "E-Contracts" that
a person comes across are:
► The Shrink-wrap Agreements.
►The Click-wrap or Web-wrap Agreements.
►The Browse wrap Agreements.
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15. Shrink-wrap agreements
►The name was derived from the "shrink-wrap"
packaging that generally contains the CD Rom
of Software's.
►The terms and conditions of accessing the
particular software are printed on the shrink-
wrap cover of the CD and the purchaser after
going through the same tears the cover to
access the CD Rom.
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(c)2013 MD HAROON RASHEED, ADVOCATE

16. Shrink-wrap agreements
►Sometimes additional terms are also imposed in
such licenses which appear on the screen only
when the CD is loaded to the computer .
►The user always has the option of returning the
software if the new terms are not to his liking
for a full refund.
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(c)2013 MD HAROON RASHEED, ADVOCATE

17. Shrink-wrap agreements
Case:
►ProCD Inc. v. Zeidenberg 86 F 3d 1447, 1449
(US. 7th Circuit Court 1996)
The Court upheld the Shrink- wrap agreement as
a valid contract.
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18. Shrink-wrap agreements
►Limitation:
The terms are not available to the purchaser until
after payment is made.
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19. Click-wrap agreements
►Click-wrap agreements are those whereby a
party after going through the terms and
conditions provided in the website or program
has to typically indicate his assent to the
same, by way of clicking on an "I Agree" icon
or decline the same by clicking "I Disagree".
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20. Click-wrap agreements
►Examples:
permission to access a site or downloading of a
software or selling something by way of a website.
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21. Click-wrap agreements
Case:
► In Re Real Network , Inc. Privacy Litigation.
2000 WL 631341 *4 (N.D. III)
The Court held that the internet users had agreed
to a license agreement for arbitration.
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22. Click-wrap agreements
►Advantage:
The user has the opportunity to see the terms of
the before assenting or paying the money.
►Limitation:
Doubt whether the user clearly or expressly
assented to the agreement.
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23. Browse Wrap Tranactions
►Terms and Conditions posted on the screen.
►Purports to bind anyone who uses the website
or services.
►Does not require the user to click on anything to
indicate his assent to these terms before paying
for the product.
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24. Browse Wrap Tranactions
Case:
►In Specht v. Netscape communications Corp.
150 F . Supp 2d 585(S.D.N.Y. 2001)
The court held the following scheme did not
suffice to create a contract.
►Pollstar v. Gigmania Ltd ., F. 2d 974 (2000)
Court upheld the validity of the BW agreemensts.
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25. Browse Wrap Tranactions
►Limitations:
No mandatory Agreements
No Clear Notice of the terms.
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26. Consideration
►Any contract (except under exceptional
circumstances as permitted by law) is not valid,
without valid consideration.
►Typically, consideration is the compensation or
promise that is given in return for a promise (in
most cases the money paid or promised for
goods or services).
►In other words, consideration is the price or the
return for a promise that turns that promise
into a legally binding contract.
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27. Consideration
► In electronic commerce, consideration does not
pose any special concern except, perhaps, for
the risks associated with payment online or
through electronic means.
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28. THANK YOU
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