SAVING
CONTRACTS ONLINE: WHAT IT MEANS
The
technological advancement of this era has transformed a great portion of human
transactions into online form from actual physical form. Letters have given way
to mail and chat messages, library references have given way to online
information services, shopping is done at the click of a finger; and in the
fast-moving world, Govt regulations and services have also largely been made
available through technological interface. Many Govt applications can now be
submitted online, like PAN, Aadhar, Passport, Electoral ID, etc. and most of
the Govt agencies have online query/complaint/grievance registration systems,
and a large number of electronic records are stored in e-format.
Similarly,
it is quite legal to enter into contracts online, and they create just as much
rights and obligations as offline contracts, and are enforceable in a Court of
law, provided that the legal requirements are met with. Since most of the
communications between people, sometimes separated by distances of half the
world, take place online without them meeting each other in person, it is
palpable that a large proportion of business/employment/sale/other contracts
are entered into online. Offer, acceptance, and legal formalities essential for
a contract can be entered into online, and an e-contract is valid subject to the provisions of the
Indian Contract and the Information Technology Act. It is also possible to
enter into the contract offline, and save all the documents online in digital
format, which comes with several advantages to the parties. Contract management
is now largely undertaken by several companies using cloud computing systems
and online data management interfaces.
THE PROS
OF SAVING CONTRACTS ONLINE
Ø Time
Saving: The
process of finding documents online is much easier as it used search engines,
and you can find any document in a matter of seconds, using key words, dates,
party names, etc. It is a stark contrast to the traditional documentation
system where a person has to fish through many registers and papers to identify
a document. A mammoth task gets done in a click. Also, uploading it into a
central system of a Contract Management Service
instead of individual data systems helps to make sure it is not lost or
misplaced.
Ø Security
& Confidentiality: While
hard copies of files would have to stacked in locked drawers to maintain
secrecy of the matter, it is much easier to simply upload the data into an
online system with in-built safety mechanisms that give access only to
authorized personnel; using authentication mechanisms like passwords or pin
numbers. To cover the risk of forgetting the password, you may use back-up
mechanisms like answering a pre-determined question, or linking it with your
Mail ID to retrieve the password.
Ø Flexibility
and Ease of Access:
Data saved on online platforms can be accessed easily from anywhere and at any
time, enabling flexibility to work from any place using the resources and information
as and when needed. This facilitates employees to avail work-from-home or for
multiple persons at remote locations to work simultaneously in a group.
Ø Mobility:
Data
including contracts, stored online can be moved from a storage location to any
other location with much practical ease. Copying and transferring online
material is much easy, and in case of a need for change of storage location
from one drive to another, or sending a copy to another person for contract
review, it can be done quite easily.
Ø Easier
Inspection: The
contracts and related documents of a company may become liable to inspection by
Regulatory Authorities at any time, and proper documentation and storage would
help save a lot of time and confusion; availability at a central depository would
do away with the rush to consolidate contractual documents and details from
various storage locations. It also helps in internal and external audits.
Ø Reduces
Cost:
Storage in online spaces like Cloud or Dropbox or even Google Drive is free of cost, and saves the cost that would
accrue to the management if they were to store it on papers in registers kept
in draws. The number of contracts entered into by companies would require a lot
of office stationary if all these were to be stored in hardcopy. Also, online
storage services do not involve the expenses of setting up individual servers
at companies for data storage; the servers would come with maintenance costs in
addition to the cost of setting up.
RELEVANT
STATUTES (INDIAN KANOON)
Ø Information Technology
Act
Ø Indian Contract Act
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