Exclusive HOLI Discounts!
Get Courses and Combos at Upto 50% OFF!
Upgrad
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Deepak Maharishi (Manager)     08 April 2016

System generated purchase order - contract ??

Hi,

 

Please advise whether system generated purchase order which goes through SAP to the supplier and acknowledged by supplier becomes a contract?

 

I am asking this because Information Technology Act says that digital signatures should be affixed to authenticate an electronic record [Section 3(1)].    Further, Section 85A of the Indian Evidence Act says that "the court shall presume that every electronic record purporting to be an agreement containing the digital signatures of the parties was so concluded by affixing the digital signatures of the parties."

 

Please advise.

 

regards



Learning

 1 Replies

JustAdvisor (IT)     18 April 2016

The Indian Contract Act does not speak of signatures anywhere (in fact it need not be even in writing). The system generated Purchase Order fits in the definition of proposal and acknowledgement fits in the definition of acceptance. Hence a contract is validly formed in my opinion as there is a meeting of minds.


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register