E-commerce (electronic commerce or EC) is the buying and selling of goods and services on the Internet. E-commerce and e-business are often used interchangeably. The term e-commerce or e-business basically means doing business on the Internet. The laws regulating the Internet and doing business online are still evolving.
Electronic transactions fall into two general categories: pure electronic and hybrid. Pure electronic transactions are transactions conducted entirely online, without the use of any traditional writings. An example is the point-and-click agreement found on many Web sites. The visitor to the Web site is presented with an online agreement and asked to click on a button to accept its terms. Hybrid transactions involve the use of written agreements, frequently called trading partner agreements, that are entered into before any electronic transactions take place. The parties draft these written agreements to specify the manner in which their anticipate electronic transactions are to be conducted.