Article 23Supplement v1, p. 23

COMMERCIAL LAWS SUPPLEMENT

obligation extinguished, or by which a fact may be proved

and affirmed, which is received, recorded, transmitted,

stored, processed, retrieved or produced electronically.

(g) "Electronic key" refers to a secret code which secures

and

defends

sensitive

information that crosses over

public channels into a form decipherable only with a

matching electronic key.

(h) "Intermediary" refers to a person who in behalf of

another person and with respect to a particular electronic

data message or electronic document sends, receives

and/or stores or provides other services in respect of that

electronic data message or electronic document.

(i) "Originator" refers to a person by whom, or on whose

behalf, the electronic document purports to have been

created,

generated

and/or

sent.

The term does not

include a person acting as an intermediary with respect

to that electronic document.

(j) "Service provider" refers to a provider of —

i) Online services or network access, or the operator of

facilities

therefor,

including

entities

offering

the

transmission, routing, or providing of connections for

online communications, digital or otherwise, between or

among

points

specified

by

a

user,

of

electronic

documents of the user's choosing; or

ii) The necessary technical means by which electronic

documents of an originator may be stored and made

accessible to a designated or undesignated third party.

Such service providers shall have no authority to modify

or alter the content of the electronic document received

or to make any entry therein on behalf of the originator,

addressee or any third party unless specifically authorized

to do so, and who shall retain the electronic document in

accordance with the specific request or as necessary for

the purpose of performing the services it was engaged to

perform.

CHAPTER II Legal Recognition of Electronic Data

Messages and Electronic Documents

SECTION

6.

Legal

Recognition

of

Electronic

Data

Message . — Information shall not be denied validity or

enforceability solely on the ground that it is in the form of

an electronic data message purporting to give rise to

such legal effect, or that it is merely incorporated by

reference in that electronic data message.

SECTION 7. Legal Recognition of Electronic Documents .

— Electronic documents shall have the legal effect,

validity or enforceability as any other document or legal

writing, and —

(a) Where the law requires a document to be in writing,

that requirement is met by an electronic document if the

said electronic document maintains its integrity and

reliability and can be authenticated so as to be usable for

subsequent reference, in that —

(i) The electronic document has remained complete and

unaltered, apart from the addition of any endorsement

and any authorized change, or any change which arises in

the

normal

course

of

communication,

storage

and

display; and

(ii) The electronic document is reliable in the light of the

purpose for which it was generated and in the light of all

relevant circumstances.

(b)

Paragraph

(a)

applies

whether

the

requirement

therein is in the form of an obligation or whether the law

simply provides consequences for the document not

being presented or retained in its original form.

(c) Where the law requires that a document be presented

or retained in its original form, that requirement is met by

an electronic document if —

i) There exist a reliable assurance as to the integrity of the

document from the time when it was first generated in

its final form; and

ii) That document is capable of being displayed to the

person to whom it is to be presented: Provided , That no

provision of this Act shall apply to vary any and all

requirements of existing laws on formalities required in

the execution of documents for their validity.

For evidentiary purposes, an electronic document shall

be the functional equivalent of a written document under

existing laws.

This Act does not modify any statutory rule relating to the

admissibility of electronic data messages or electronic

documents, except the rules relating to authentication

and best evidence.

SECTION 8. Legal Recognition of Electronic Signatures . —

An electronic signature on the electronic document shall

be equivalent to the signature of a person on a written

document if the signature is an electronic signature and

proved by showing that a prescribed procedure, not

alterable

by

the parties interested in the electronic

document, existed under which —

a.) A method is used to identify the party sought to be

bound and to indicate said party's access to the electronic

document necessary for his consent or approval through

the electronic signature;

b.)

Said

method is reliable and appropriate for the

purpose

for

which

the

electronic

document

was

generated

or

communicated,

in

the

light

of

all

circumstances, including any relevant agreement;

c.) It is necessary for the party sought to be bound, in

order to proceed further with the transaction, to have

executed or provided the electronic signature; and

d.) The other party is authorized and enabled to verify the

electronic signature and to make the decision to proceed

with the transaction authenticated by the same.

SECTION

9.

Presumption

Relating

to

Electronic

Signatures . — In any proceedings involving an electronic

signature, it shall be presumed that,

a.) The electronic signature is the signature of the person

to whom it correlates; and

b.) The electronic signature was affixed by that person

with the intention of signing or approving the electronic

document unless the person relying on the electronically

signed electronic document knows or has notice of

defects in or unreliability of the signature or reliance on

the electronic signature is not reasonable under the

circumstances.

SECTION 10. Original Documents . — (1) Where the law

requires information to be presented or retained in its

original form, that requirement is met by an electronic

data message or electronic document if:

(a) the integrity of the information from the time when it

was first generated in its final form, as an electronic data

message or electronic document is shown by evidence

aliunde or otherwise; and

(b) where it is required that information be presented,

that the information is capable of being displayed to the

person to whom it is to be presented.

(2) Paragraph (1) applies whether the requirement therein

is in the form of an obligation or whether the law simply

provides consequences for the information not being

presented or retained in its original form.

(3) For the purposes of subparagraph (a) of paragraph (1):

(a) the criteria for assessing integrity shall be whether the

information has remained complete and unaltered, apart

from the addition of any endorsement and any change

which arises in the normal course of communication,

storage and display; and

(b) the standard of reliability required shall be assessed in

the light of the purpose for which the information was

generated

and

in

the

light

of

all

the

relevant

circumstances.

SECTION 11. Authentication of Electronic Data Messages

and Electronic Documents . — Until the Supreme Court

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