December 28, 2022
As cross-border transactions are becoming increasingly common, businesses and individuals are turning to electronic means to save time and costs. Instead of waiting for documents to be transported by courier around the globe, the relevant parties can finalize and execute their contract in a matter of seconds, in the comfort of their own base. The steady rise of globalization, coupled with the social distancing protocol of COVID-19, is further accelerating the popularity of electronic signatures in 2020. Their growing prevalence brings forth questions about their legitimacy, effectiveness, and security. Fortunately, the technological advancement behind their conception and the maturing legal infrastructure built around electronic sign-offs are attesting to their positive values: electronic execution of contracts is a sufficient alternative to, if not a replacement of, in-person procedures. Legal Infrastructure In order for electronic signatures to be widely used, they have to be deemed legally valid under the relevant jurisdiction. As early as the late 1990s, legislative bodies around the world have come to grant electronic signatures the same legal status as handwritten signatures, encouraging businesses to adopt the paperless practice. In 2020, electronic signatures are legally recognized in over 60 countries. In Vietnam, electronic signatures have been given legal effect and enforceability since 2005. According to Article 21.1, Law on E-transactions 2005, “an [electronic] signature is established in the form of words, letters, numbers, symbols, sound, or other forms by electronic means, logically attached with or associated with a data message, which has an ability to certify the person who signs the data message and to certify the approval of such person to the content of the signed data... December 26, 2022
With so much of our lives online, what do we do when things go awry? Do our verbal agreements over messaging platforms like whatsapp count? Generally speaking, electronic evidence is less conclusive than traditional evidence (mainly paper documents). It is more difficult to prove the integrity of electronic evidence and more challenging to document enough evidence electronically to tell the full story. Electronic devices are fast replacing ‘paper documents’ in commercial transactions all over the world (including Vietnam) Emails, video calls and messaging apps are increasingly being utilized by enterprises for information exchange, contract execution and implementation. What are some clear advantages of electronic transactions? Efficient Convenient Cost-effective What are the hidden risks? Generally, electronic evidence is less conclusive compared to traditional evidence. When things go awry, the identities of the sender and recipient, the time of sending, the receipt of goods or documents, and the authority to sign become sources of endless contention. How electronic evidence fair against transition evidence Electronic evidence Traditional evidence Can be structurally distorted when stored in computer or transmission lines. Difficult to be structurally changed. Can be modified without any trace. Changes are easier to detect. Hard to identify as it is stored digitally and encrypted. Easy to identify by viewing. Simple to duplicate Hard to duplicate. Quality of evidence depends on the quality of the technology Quality of evidence depends on its physical condition. These “hidden risks” may prove to be extremely costly to the business. Tips to manage risks in a modern world During the execution, performance and termination of a commercial contract, use electronic mails as the primary form of... Upcoming Events
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