Technological advancements have resulted in online formation contracts. Through the internet and the computer, sending messages across the world has indeed become more tranquil. These messages often reach the receiver instantly. The internet, interestingly, connects several networks throughout the universe ranging from universities, corporate networks, individuals, to international business corporations. Currently, the internet has proved to be extremely beneficial as it is now possible to enter into online contracts both within a country and outside the country. These online contracts are often exchanged by the electronic record means.
Markedly, an electronic contract is created by the negotiation of two or more people via the utilization of electronic means (Gholap, 2018) . This means may include email, computer program or the interaction of two or more electronic agents that are designed to identify a contract’s existence. Because Great Buys is an internet-based company, the majority of its contracts are formed online. According to the law, all electronic contracts are binding as long as it meets the criteria of a valid contract. Firstly, for an online contract to be valid, there should be an offer made. However, in many transactions, the offer is usually not made directly one-one-one (Gholap, 2018) . The consumer typically searches the available services and goods displayed on the website of the vendor. Then, one selects what he or she would like to buy.
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Secondly, there should be acceptance during contract formation. That is to say; the offer needs to be accepted. Often, the acceptance is undertaken by the vendor or business after the consumer has made an offer with regards to the invitation to treat. It is imperative to note that the offer can be revoked at any time prior to the acceptance is made. Thirdly, legal consideration is critical. Herein, for any agreement established electronically to be enforced by the law, there must be lawful consideration. Fourthly, according to Gholap (2018) , there has to be an intention to establish legal relations. No contract can be formed between parties if there is no intention to build legal relationships. Fifthly, all the parties engaging in the contract must be lawfully competent. Online contracts are void if incompetent people took part in the agreement. Incompetent individuals may include lunatics, minors, insolvents, and many others. Sixthly, there must be genuine and free consent. Coercion, fraud, undue influence, as well as misrepresentation should not be used to force parties to sign an online contract. Because online transactions do not involve interaction between contracting parties, free consent is usually facilitated through clicking through the procedure in the website (Karimi & Akbari, 2017) . Seventhly, the contract’s object must be lawful. In other words, the agreement between the two or more contracting parties must abide by the law. Finally, and most importantly, there must be a possibility and certainty of performance (Gholap, 2018) . For a contract to be enforceable by the law, it should not be uncertain, vague or ambiguous. In general, a contract is which is impossible to carry out is typically void. Therefore, if an internet-based company ensures that its online contracts contain the above features, then the contracts are indeed binding.
With the growth of information technology as well as electronic transactions feasibility, there has been broad recognition of the electronic equivalent of writing. In other words, electronic data is now equal to the traditional writing mode such as using pen and ink. The utilization of digital signatures notably meets signature requirements. As such, it is possible to use digital signatures instead of a physical signature. Valid digital signatures indeed ensure the integrity and authenticity of an online contract. Also, the delivery requirement is adequately met by transferring control or possession electronically. The Uniform Electronic Transactions Act (UETA) highlights that a signature in electronic form is enforceable. Also, contracts in electronic format are valid, and an electronic signature is accepted. In this regard, customers are bound to online contracts even without the presence of handwritten “pen and ink” signature.
For the most part, including arbitration clauses in electronic contracts is beneficial in addressing the risks associated with e-commerce. E-commerce has led to several instances of various consumers filing lawsuits in their home states. Worse still, consumers have also engaged in a class action lawsuit. With arbitration, conflicts are typically arbitrated on a personal basis. Presently, the Federal Arbitration Act requires a contract to arbitrate to be in writing (Dasteel, 2017) . Also, for an online arbitration clause to be enforceable, it must meet other requirements as well; the arbitration clause must be conspicuous and clear to notify the contracting party that the individual is waiving the right to litigate. In other words, the arbitration clause should not be inconspicuously hidden within the online contract. Therefore, if Great Buy’s arbitration clause meets the previously mentioned criteria, then its arbitration clause is undoubtedly enforceable.
Notably, improving internal business procedures is essential to avoid customer complaints turning into contract related lawsuits. In this regard, Great Buys needs to enhance its customer experience. Generally, unhappy customers demonstrate broken business processes. Therefore, to improve the experience for customers, a business needs to align internal business processes to provide better customer outcomes. Systematically studying customers is imperative in establishing dynamic business processes that regularly meet their needs.
To sum up, the important characteristics of a valid contract are all evident in an electronic contract. During online contract formation, if all law requirements are successfully met, the formation of contracts can be viewed in all transactions involving e-commerce.
References
Dasteel, J. (2017). Consumer click arbitration: a review of online consumer arbitration agreements. Arbitration Law Review , 9 (18).
Gholap, S. (2018). Electronic contracts in India: An overview. International Journal of Research in Humanities, Arts and Literature (IMPACT: IJRHAL) , 6 (8), 251-260.
Karimi, A., & Akbari, M. (2017). Basic Conditions of Validity of Electronic Contracts in Iran and UNCITRAL Model Law. Journal of History Culture and Art Research , 6 (1), 392. doi: 10.7596/taksad.v6i1.750
