Online contracts pose a peculiar set of legal problems
Technology is always throwing up legal googlies. If, for instance, a contract is concluded on the Internet, where does the cause of action arise?
If Party A is in Mumbai and Party B in Bangalore, and they strike a deal on the Internet, which court has the jurisdiction to hear the case?
In an ordinary contract, a suit can be filed in a court in the state where the defendant lives or carries on business. Alternatively, a suit can be filed in a court within whose jurisdiction the cause of action, wholly or in part, arises.
In the case of an online contract, the offer and acceptance are made through the Internet. Therefore, the cause of action in part arises at both places, namely the place from where the offer is made and the place from where the acceptance is communicated.
The Madhya Pradesh State Consumer Disputes Redressal Commission recently tackled a case relating to a deal struck on the Internet. A newspaper advertisement appeared on July 5, 2000 with the caption
