Answer By law4u team
Terms and conditions (T&C) on e-commerce sites form a contract between the platform and its users, outlining rights, responsibilities, and limitations. When properly drafted and accepted, these T&Cs are legally binding and help protect both parties by setting clear expectations.
Legal Basis for Binding Nature of T&Cs
1. Contract Formation
T&Cs constitute a contract once users agree to them, usually by clicking I Agree or continuing use of the site.
Acceptance must be informed and voluntary for enforceability.
2. Consumer Protection Laws
Laws like the Consumer Protection Act, 2019 (India) ensure that T&Cs are fair, transparent, and not misleading.
Unfair terms can be challenged or struck down by courts.
3. Electronic Contracts and IT Act
The Information Technology Act, 2000 recognizes electronic agreements and digital signatures, supporting T&C enforceability online.
4. Jurisdiction and Dispute Resolution
T&Cs often specify governing law, jurisdiction, and dispute resolution mechanisms (e.g., arbitration clauses).
These clauses help avoid costly litigation and provide clarity.
Key Clauses Typically Found in E-Commerce T&Cs
User eligibility and account responsibilities.
Payment terms and refund policies.
Intellectual property rights.
Limitation of liability.
Privacy and data usage policies.
Termination rights.
Limitations and Considerations
T&Cs cannot override statutory consumer rights.
Clauses deemed unconscionable or unfair may be invalidated by courts.
Users must be given reasonable opportunity to read and understand T&Cs.
Example
A customer buys a product online and later claims a refund, but the platform’s T&Cs specify no refunds on sale items.
Legal Outcome:
If T&Cs were clearly communicated and accepted, the clause may be enforceable.
However, if the clause is unfair or contradicts consumer law, the customer may still have rights.
Disputes can be resolved through the dispute resolution mechanism outlined in T&Cs.
