The astonishing electronic creation of the internet has changed the boundaries of business-consumer contracts, presenting an economic rise of businesses and individuals (Saul). Development of traditional contract law was formed to deal with unfair communication though its effectiveness is raised; current principles of contract law are hardly applicable and insufficient to determine the formation of an electronic contract.
The innovation of online contracting and the development of new technologies need be determinative of whether those principles will apply to an online transaction (Siemer). It is questioned whether there is any crucial difference between electronic contracts and those concluded in the form of traditional paper-based means (Saul). The elements of forming a contract online include of an offer being placed, Acceptance, Intention to create legal relations and consideration.
Offers and acceptances over the internet can arise when parties exchange e mail messages, engage in electronic data interchange, or fill out forms on Web pages (Gary P). The requirements for forming a valid contract in an electronic commerce transaction are met, for example through actions such as an exchange of an email, Click warp agreement and downloading software or programs.
The basic components of a buyers contract to buy goods are the same whether the transaction is completed formally in person or online. Only the form of the offer and acceptance are different in the two environments. When a seller advertises goods for sale on a Web site, that seller is not making an offer, but is inviting others from potential buyers. When a buyer submits an order, which is an offer, the seller can accept that offer and create a contract. If the seller does not have the ordered items in stock, the seller