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Electronic Agreement GuidelinesElectronic Agreement and Digital Signature in Pakistan

Electronic Agreement & Digital Signature

Writing contracts and agreements for electronic business in Pakistan such as E-commerce, FinTech or SaaS Services is a legal requirement for business activities. An e-contract has to be in the form of electronic data.

Electronic Agreement

An electronic agreement is a contract that is created using an electronic means which is transmitted to the other party electronically, and contains or controls the rights and obligations of the parties, and that is electronically signed by the parties in compliance with the requirements for electronic contracts. The more you know about your online rights and who you are interacting with online, the better off you’ll be. Our Law Firm will help you to negotiate the best terms in your contract.

With the emergence of industrialization, westernization and development, the technological advances around the whole world have led to the drastic changes in the commerce and trade. Today, business and trade are not bound to any certain territorial boundaries and the need of physical presence at the place of contract.

Website & Web App Agreements

Your website agreements are the contract between you and users, visitors, registered users, eCommerce customers, and anyone else who interacts with your business website.

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We can help customize your website agreements to protect your company in compliance with the data protection and other applicable laws of Pakistan.

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What is Electronic Agreement?

E-Contracts are a complex subject in the Internet age. More and more
companies, from startups to Fortune 100 companies, are creating new types
of transactions with their customers that fit into this category.
This not only includes information technology contracts, but also vendor
contracts, personal loan contracts, e-commerce, consumers and even coffee
shop contracts.
What’s more, consumers are more and more opting to read the terms and
conditions of their Internet contracts before they sign.
Why? Because they feel they can negotiate better on their own terms.
E-Contracts are an important part of any online business. When you buy
products or services from an online store or vendor, you are usually
required to sign an electronic contract. When you buy something from
another person, you are also required to sign a contract.
Most people are familiar with an agreement that comes on the internet.
These agreements, called “terms & conditions”, “end user licenses” or “end
user agreements,” cover the use of the services.
For example, when you’re trying to decide whether to buy an online service
from a SaaS provider, there are a few factors that you should consider in
your e-contract. Your SaaS provider should offer you a quality of service,
but you should also ask about the service’s reliability. Do you have to pay a
monthly fee? Are there any additional charges that don’t appear in the price
section? What kind of support is available if you run into trouble with the
They usually have terms of service that limit what you can do with the
service or product, or how you can use it. The problem is, many people have
no awareness about the legality or enforceability of these agreements in

Browse-Wrap Contracts

Browse-Wrap is a passive way of getting agreement to your term. In the
Browse-Wrap method you provide a link of the Terms or Agreement in the
footer of a website in the menu of Application.
The context of the Browse-Wrap agreement is that by using the
website/app you accept and agree to be bound by the terms of the contract.
In this method your user is considered to be accepting your terms simply by
browsing your website or an app.
But this passive approach may lead to the bulk of legal issues which may
harm the business because of lack of user’s information and his explicit
In other words, he was simply browsing your website and had not given a
proper consent that would make him party to an agreement.
As in Pakistan, the privacy law keeps evolving to offer better protection to
the users therefore BrowseWrap will be phased out and deemed not
according to the legal standards.

Click-Wrap Contracts

Click-Wrap is a preferred method for an online business for getting users to
agree to its terms and conditions. In the Click-Wrap method you also
provide a link of the agreement in the footer. However the way you get
users to agree is very different and legitimate.
In the Click-Wrap method the system shows the agreement to a user at the
time when a user wants to subscribe the services or purchase a product.
For example, as part of the Sign up or registration form process, a user
must actively digitally sign by way of “Click” on the checkbox next to “I
Agree” Button. This would ensure that users have read the terms and given
his explicit consent and got engaged into the agreement.
Another example, if a website is using a cookie method to collect the data of
the users, a pop-up message would show on the screen and users have two
choices such as “Allow/Accept” or “Decline/Manage Cookie”.
Clickwrap is a recommended way that will secure your interest from the
user’s legal action against you.

How to sign an electronic agreement?

An electronic agreement is a legal document on the internet that is used to
establish the terms of a business relationship between two or more parties.
An agreement can have different types of clauses, such as an agreement
between a legal entity and a natural person (in a contract), or an agreement
between two natural persons in a contract.
There are different types of electronic agreements that vary on the deal
between the service provider and the consumer.
An internet agreement is signed through the digital signatures. For example
if you are signing up for the services of a SaaS provider and after filing the
form you have to click the checkbox of the “Terms of Use”. The moment you
click on the checkbox and sign up for the services, you have signed the

Whether E-Contracts are enforceable in Pakistan?

If we talk about the codified law then there is no act passed by the
Parliament in order to ensure the enforceability but if we talk about its
legality then the e-contracts are legal and enforceable.
We have derived this principle from the general and international practices
that when a buyer enters into an agreement with the service provider on the
internet after fulfilling the essentials of the contract i.e. offer, acceptance,
consideration and time, then the agreement is enforceable.

Most Important Factors in E-Contracts

Before drafting and publishing any electronic contract or agreement you should focus on
the basic essentials of the contract which are as follows:
As the world of technology continues to grow, so do the number of electronic contracts
used in today’s society. These contracts are not only used for products but they are also
applied for the sale of services.
Commonly, we rely on electronic contracts for making online transactions. From buying
a laptop to buying a flat screen TV, to booking a flight, to setting up a bank account, or
even buying a car, you’ve probably signed an electronic contract at least once.
But how do those electronic contracts stack up against traditional written contracts?
Are they still enforceable?
Are they effective?
Electronic contracts are more common now than ever, but how do you know if the terms
you’re agreeing to are fair? Most people have little knowledge about electronic contracts
and how they work, which makes it difficult to discuss certain terms and conditions.
What do you do when the other party doesn’t agree with the terms you’ve negotiated?
What if your Internet service provider (ISP) changes your contract terms without telling
you? Is there a way to challenge the terms in the contract?
Originally, an electronic contract is an electronic document. However, it turned into a
complex issue when many online businesses demanded an electronic signature from the
other party. This was because electronic transactions can be legally binding in a court of
law without a physical contract.
Such contracts are known to be both efficient and effective, but are usually just
one-sided. That is to say, the parties that drafted the contract usually include the terms
they want to agree upon, while the other side has to agree to the terms either without
knowing anything about them, or after having an opportunity to disagree.
In Case A, the offeree may not know how much he’ll have to pay until receiving the
digital offer.
In Case B, the offeree would have to wait to receive the electronic contract.

E-contract legal issues and challenges

Highly competitive and technologically advanced economy, businesses have to take
serious risks in order to succeed.
In order for a business to be successful, they must take proper precautions to protect
themselves from the legal issues arising from their services. Contracts are the most
important form of protection against possible losses and legal issues.
Electronic contracts are vital to the business world today. With the rise of e-commerce
and SaaS Services, many online businesses rely on electronic contracts for their day to
day operations.
In fact, it is estimated that more than half of all business contracts are now concluded
This trend is likely to increase in the future as technology becomes more of an integral
part of our everyday lives.

Our Recommendations

● The terms must be placed along with the acceptance button as the user can see the
tab before subscribing.
● There must be an option to reject and agree to the terms.
● Must have an option of a typed signature at the end of the document or have a
checkbox before the user hits the “I accept” button.
● The “Terms & Conditions” must be visible on a webpage.
● The “Terms & Conditions” must be explained in easy language and easily be readable
for the users.
● Don’t rush them through the terms by adding web page timeouts, and they should be
able to read as many times as they want before accepting.
● The terms must be written in an unambiguous language so the user can easily
● Must ensure that any of the terms must not contradict with any other information on
the website.
● Acceptance of Terms: What constitutes an acceptance? For Example: Inclusion of the
Note that “By Clicking on CheckBox or I Agree button, you are electronically signing
the contract”.

Services We Provide

The Case Lawyer Law Firm has experience in the regulating laws of
Pakistan and we have vast expertise in Electronic Contracts. We are
drafting, reviewing and updating the electronic agreements for top Tech
Companies operating their business in Pakistan.
● Drafting Electronic Agreements in light of the national laws
● Reviewing and Updating of the existing agreements
● Legal Opinion regarding the e-contracts
● Enforceability and Execution of the same
● Notice for compliance and breach
● Dispute Resolution
● Litigation in courts

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