The Validity of Electronic Contracts (E-Contracts) Using Click-Wrap Agreements
Keywords:
validity; electronic contract; click-wrap agreement; freedom of contract; consumer protectionAbstract
The use of e-commerce in trade has significantly affected the international community in general and Indonesian society in particular, and it raises legal questions about the requirements for the validity of electronic contracts. E-commerce contracts commonly rely on click-wrap agreements, in which a user accepts standard terms displayed on a screen before completing a transaction. This study addresses two issues: (1) the validity of electronic contracts (e-contracts) that use click-wrap agreements, and (2) the legal consequences arising from such contracts. It is normative juridical research that employs a statutory approach and a conceptual approach. The findings show that a click-wrap agreement, as a form of electronic contract, is implicitly recognised in the Indonesian legal system through the Law on Electronic Information and Transactions, with further technical provisions in Government Regulation No. 71 of 2019. Such a contract is valid only if it satisfies the requirements of consent, legal capacity, a specific object, and a lawful cause; consent given by clicking "agree" remains governed by Article 1320 of the Civil Code and must be free from coercion, mistake, or fraud (Article 1321). Although the agreement is normatively valid, freedom of contract in click-wrap agreements is formal rather than substantive. The legal consequences include unequal bargaining positions, limited user understanding, the dominance of standard clauses, and the absence of comprehensive technical regulation, which affect the balance between the parties, consumer protection, legal certainty, law enforcement, and the development of contract law. Stronger regulation and clearer oversight are therefore needed.
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Law No. 8 of 1999 on Consumer Protection.
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Law No. 7 of 2014 on Trade.
Government Regulation No. 71 of 2019 on the Implementation of Electronic Systems and Transactions.
Government Regulation No. 80 of 2019 on Trading Through Electronic Systems.
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