SALE OF GOODS ACT, 1930 PERFORMANCE OF THE CONTRACT (SECTION 32 TO SECTION 40) IN RELATION TO E-COMMERCE AND ITS IMPLICATIONS
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Abstract
Today E-commerce has become part and parcel of daily life and many business transactions worth millions are made through this ever booming, newly found industry. With initiatives like Digital India, the focus of traditional style of business is turned towards E-business which has comparatively lesser investment and bigger returns. Although this trend has been there since 15 years, this industry saw phenomenal growth of almost 50 % in last five years. This system can be divided under three heads- Consumer to Consumer (C2C), Business to Consumer (B2C) and Business to Business (B2B). We have to see how E-commerce is related to Sale of Goods Act, 1930, especially in relation to Section 32 to Section 40 of this Act which deals with delivery of products. This Act gives legal validity to the functioning of E-commerce and has different impact on it. Before the boom of E-commerce, Sale of Goods Act, 1930 was exclusively meant for traditional businesses but now, this Act is applied to virtual businesses, in order to establish legal sanctity. All electronic contracts are enforced through the principles laid down under Indian Contract Act, 1872. Also, Section 10 of Information Technology Act, 2000 provides validity to econtracts. Section 3 of Evidence Act justifies electronic form of evidence. The Supreme Court in Trimex International FZE Ltd. Dubai v. Vedanta Aluminium Ltd., held that e-mails exchanged between the parties regarding mutual obligations constitutes a contract. Consequently, the terms and conditions which are associated with an E-commerce platforms are of utmost importance in determining and ensuring that E-commerce transactions meet with the requirements of a valid contract.
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