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Electronic commerce or popularly known as E-Commerce, is business done through the Internet. It includes buying and selling of consumer goods as well as services. This is done by electronic transfer of funds by the consumer to the business provider. The transactions in e- commerce are Business-to-Business or Business-to-Consumers or Consumers-to-Consumers.

E-commerce business module has its own set of legal issues which are dealt by the Information Technology Act, 2000.

E- Contracts or electronic contracts follow the same principles of Contracts under the Indian Contract Act. Section 10A of the IT Act, provides validity to electronic contracts. Thus, for the e-contracts both the Act should be taken into consideration together. Such contracts can also be stamped through e-stamping.

Protection of Sensitive Data during such online transactions in e-commerce is also provided for under section 43A of the IT Act, which provides compensation incase of failure by the body corporate to protect data handled during such transactions in e-commerce.