Validity of Electronic Contracts from an Islamic Perspective - Research Paper Example

The advancement of technology and the subsequent rise in the use of the internet has brought about radical transformations in the corporate world and changed the dynamics of the marketplace as a result. There has been a significant rise in the number of potential buyers and sellers online. According to available statistics, there are currently over 245 million internet users in the U.S1 and this trend has been observed in several developed as well as developing countries across the globe. According to the Census Bureau of the Department of Commerce, there is likely to be a rise in the U.S. e-commerce sales for the year 2012 to the tune of $53.

2 billion2.The statistics indicate that more and more businesses, as well as individuals, are becoming increasingly becoming tech-savvy and relying on internet technology for boosting the sales of their products and services. Various researchers have claimed that the changing dynamics of the contemporary marketplace indicate the advancement of a new international market supported by full-fledged electronic commerce transactions and that the trend has now become a reality. This is evident from the fact that the current marketplace has expanded to include a new and wider international market that transcends beyond the geographical boundaries and affording the consumers to market their products worldwide.

The increase in the use of electronic mails and other online means there has been a simultaneous change in the forms of agreement and contracts as well. The EDI (Electronic Data Interchange) method is used widely by businesses across the globe while entering into a contract online. This method is used to establish contractual relationships over the internet by transmitting vital business-related documents such as invoices, shipping notices, as well as bid quotes. The use and application of technologically advanced systems for conducting business is a growing trend that has contributed immensely to the economy and has expanded the markets and allowed for a more cost-effective way of conducting business as compared to the conventional paper-based contracts.