In today`s digital world, e-contracting has become an increasingly popular method of doing business. E-contracts are online agreements between two parties that are legally binding. While e-contracting offers many benefits such as speed, convenience and cost-effectiveness, it also poses some challenges. Legal issues such as contract formation, validity, and enforceability must be considered when engaging in e-contracting.

Contract Formation

One of the main legal issues related to e-contracting is contract formation. In traditional contracting, parties show their agreement by signing a written contract. However, in e-contracting, the agreement is made through electronic means. Depending on the jurisdiction, the electronic agreement must meet certain legal requirements for it to be legally binding.

To form a valid e-contract, the parties must demonstrate their intention to be bound by the terms of the agreement. This can be done through electronic signatures or clicking a button that indicates agreement. Additionally, the parties must agree to the terms and conditions of the contract, and each party must receive a copy of the contract.


Another essential legal issue related to e-contracting is validity. Just because a contract is formed electronically does not mean it is automatically valid. Parties must ensure that the contract meets the legal requirements of their jurisdiction. For instance, some jurisdictions require that e-contracts must be in writing and must include certain information such as the parties` names and addresses.

Additionally, parties should ensure that the contract is not illegal or against public policy. For instance, a contract that requires a person to carry out an illegal activity is not valid.


Enforceability is another legal issue that must be considered in e-contracting. Parties must ensure that their e-contract is enforceable in the court of law. This means that the contract must be signed by the parties who have the legal capacity, and the terms of the contract must be lawful.

Parties should also ensure that the contract is in compliance with all applicable laws and regulations. For instance, in some jurisdictions, contracts can only be enforced if they are in a certain language or format.


In conclusion, e-contracting has become a popular method of doing business in the digital world, and it offers many benefits. However, parties must be aware of the legal issues related to e-contracting, such as contract formation, validity, and enforceability. By ensuring compliance with the applicable laws and regulations, parties can engage in e-contracting with confidence.