Article 24Supplement v1, p. 24

COMMERCIAL LAWS SUPPLEMENT

by appropriate rules shall have so provided, electronic

documents, electronic data messages and electronic

signatures, shall be authenticated by demonstrating,

substantiating and validating a claimed identity of a user,

device,

or

another

entity

in

an

information

or

communication system, among other ways, as follows:

(a) The electronic signature shall be authenticated by

proof that a letter, character, number or other symbol in

electronic form representing the persons named in and

attached to or logically associated with an electronic data

message, electronic document, or that the appropriate

methodology or security procedures, when applicable,

were employed or adopted by a person and executed or

adopted

by

such

person,

with

the

intention

of

authenticating or approving an electronic data message

or electronic document;

(b) The electronic data message or electronic document

shall be authenticated by proof that an appropriate

security procedure, when applicable was adopted and

employed for the purpose of verifying the originator of an

electronic

data message or electronic document, or

detecting

error

or

alteration

in the communication,

content

or

storage

of

an

electronic

document

or

electronic data message from a specific point, which,

using algorithm or codes, identifying words or numbers,

encryptions,

answers

back

or

acknowledgment

procedures, or similar security devices.

The Supreme Court may adopt such other authentication

procedures, including the use of electronic notarization

systems

as necessary and advisable, as well as the

certificate of authentication on printed or hard copies of

the electronic documents or electronic data messages by

electronic

notaries,

service providers and other duly

recognized or appointed certification authorities.

The person seeking to introduce an electronic data

message or electronic document in any legal proceeding

has the burden of proving its authenticity by evidence

capable of supporting a finding that the electronic data

message or electronic document is what the person

claims it to be.

In the absence of evidence to the contrary, the integrity of

the information and communication system in which an

electronic

data

message

or

electronic

document

is

recorded or stored may be established in any legal

proceeding —

(a) By evidence that at all material times the information

and communication system or other similar device was

operating in a manner that did not affect the integrity of

the electronic data message or electronic document, and

there are no other reasonable grounds to doubt the

integrity of the information and communication system;

(b) By showing that the electronic data message or

electronic document was recorded or stored by a party to

the proceedings who is adverse in interest to the party

using it; or

(c) By showing that the electronic data message or

electronic document was recorded or stored in the usual

and ordinary course of business by a person who is not a

party to the proceedings and who did not act under the

control of the party using the record.

SECTION

12.

Admissibility

and

Evidential

Weight

of

Electronic Data Messages or Electronic Documents . — In

any legal proceedings, nothing in the application of the

rules on evidence shall deny the admissibility of an

electronic

data

message

or

electronic

document in

evidence —

a. On the sole ground that it is in electronic form; or

b. On the ground that it is not in the standard written

form, and the electronic data message or electronic

document

meeting,

and

complying

with

the

requirements under Sections 6 or 7 hereof shall be the

best

evidence

of

the

agreement

and

transaction

contained therein.

In assessing the evidential weight of an electronic data

message or electronic document, the reliability of the

manner

in

which

it

was

generated,

stored

or

communicated, the reliability of the manner in which its

originator was identified, and other relevant factor shall

be given due regard.

SECTION 13. Retention of Electronic Data Message or

Electronic Document . — Notwithstanding any provision

of law, rule or regulation to the contrary —

(a) The requirement in any provision of law that certain

documents be retained in their original form is satisfied

by retaining them in the form of an electronic data

message or electronic document which —

i. Remains accessible so as to be usable for subsequent

reference;

ii. Is retained in the format in which it was generated, sent

or received, or in a format which can be demonstrated to

accurately represent the electronic data message or

electronic document generated, sent or received;

iii.

Enables

the

identification

of

its

originator

and

addressee, as well as the determination of the date and

the time it was sent or received.

(b)

The requirement referred to in paragraph (a) is

satisfied by using the services of a third party, provided

that the conditions set forth in subparagraphs (i), (ii) and

(iii) of paragraph (a) are met.

SECTION 14. Proof by Affidavit . — The matters referred to

in Section 12, on admissibility and Section 9, on the

presumption of integrity, may be presumed to have been

established by an affidavit given to the best of the

deponent's knowledge subject to the rights of parties in

interest as defined in the following section.

SECTION 15. Cross-Examination . — (1) A deponent of an

affidavit

referred

to

in

Section

14

that

has

been

introduced in evidence may be cross-examined as of right

by a party to the proceedings who is adverse in interest to

the party who has introduced the affidavit or has caused

the affidavit to be introduced.

(2)

Any

party

to

the

proceedings

has the right to

cross-examine

a

person

referred

to

in

Section

11,

paragraph 4, sub-paragraph c.

CHAPTER III Communication of Electronic Data

Messages or Electronic Documents

SECTION

16.

Formation

and

Validity

of

Electronic

Contracts . — (1) Except as otherwise agreed by the

parties, an offer, the acceptance of an offer and such

other elements required under existing laws for the

formation

of

contracts

may

be

expressed

in,

demonstrated and proved by means of electronic data

messages or electronic documents and no contract shall

be denied validity or enforceability on the sole ground

that it is in the form of an electronic data message or

electronic document, or that any or all of the elements

required under existing laws for the formation of the

contracts is expressed, demonstrated and proved by

means

of

electronic

data

messages

or

electronic

documents.

(2) Electronic transactions made through networking

among banks, or linkages thereof with other entities or

networks, and vice versa, shall be deemed consummated

upon the actual dispensing of cash or the debit of one

account

and

the

corresponding

credit

to

another,

whether such transaction is initiated by the depositor or

by an authorized collecting party: Provided , That the

obligation of one bank, entity, or person similarly situated

to another arising therefrom shall be considered absolute

and shall not be subjected to the process of preference of

credits.

SECTION 17. Recognition by Parties of Electronic Data

Message or Electronic Document . — As between the

originator

and

the

addressee

of

an

electronic data

message or electronic document, a declaration of will or

other statement shall not be denied legal effect, validity

© Compiled by RGL

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