7: ELECTRONIC COMMERCE ACT

Electronic Commerce Act

An act providing for the recognition and use of electrionic commercial and non-commercial transaction and documents, penalties for unlawful use thereof, and other purposes

Republic Act No. 8792

E-Commerce Act is also known as _____________________

Facilitate domestic and international dealings, transactions, arrangements, agreements, contracts and exchanges and storage of information

The E-Commerce Act (Act) aims

• to ________________ through the utilization of electronic, optical and similar medium, mode, instrumentality and technology,

Recognize the authenticity and reliability

The E-Commerce Act (Act) aims

• to ____________ of electronic data messages or electronic documents related to such activities and

Promote the universal use of electronic transactions

The E-Commerce Act (Act) aims

• to _____________ in the government and by the general public.

Domestic and international dealings, transactions, arrangements, agreements contracts and exchanges and storage of information

The Electronic Commerce Act shall apply to any kind of electronic document used in the context of commercial and non-commercial activities to include _____________

Computer

refers to any device or apparatus singly or interconnected which, by electronic, electro-mechanical, optical and/or magnetic impulse, or other means with the same function, can receive, record, transmit, store, process, correlate, analyze, projects, retrieve, and/or produce information, data, text, graphics, figures, voice, video, symbols or other modes of expression or perform any one or more of these functions.

Information and Communications System

refers to a system for generating, sending, receiving, storing, or otherwise processing electronic documents and includes the computer system or other similar device by or in which data is recorded or stored and any procedures related to the recording or storage of electronic document.

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.

Addressee

refers to a person who is intended by the originator to receive the electronic data message or electronic document, but does not include a person acting as an intermediary with respect to that electronic data message or electronic data document.

Intermediary

refers to a person who in behalf of another person and with respect to a particular electronic document sends, receives and/or stores, provides other services in respect of that electronic data message or electronic document.

Service provider

refers to a provider of:

1. 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

2. The necessary technical means by which electronic documents of an originator may be stored and made accessible to designated or undesignated third party.

Service providers 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,

Service provider

They 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.

Electronic data message

refers to information generated, sent, received or stored by electronic, optical or similar means.

Electronic signature

refers to any distinctive mark, characteristic and/or sound in electronic from, representing the identity of a person and attached to or logically associated with the electronic data message or electronic document or any methodology or procedures 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.

Electronic key

refers to a secret code which secures and defends sensitive information that crossover public channels into a form decipherable only with a matching electronic key.

Electronic document

refers to information or the representation of information, data, figures, symbols or other modes of written expression, described or however represented, by which a right is established or an obligation extinguished, or by which a fact may be prove and affirmed, which is receive, recorded, transmitted, stored, processed, retrieved or produced electronically.

Not be denied validity or enforceability

Information shall _____________ solely on the ground that it is in the form of electronic data message purporting to give rise to such legal effect, or that it is merely incorporated by reference in that electronic data message.

Legal effect, validity or enforceability

Electronic documents shall have the ______________ as any other document or legal writing

In writing

Electronic documents shall have the legal effect, validity or enforceability as any other document or legal writing, and:

• Where the law requires a document to be ___________, 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,

Remained complete and unaltered

The electronic document has ____________, 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;

Reliable

The electronic document is ________ in the light of the purpose for which it was generated and in the light of all relevant circumstances.

Form of an obligation, the law simply provides consequences

Electronic documents shall have the legal effect, validity or enforceability as any other document or legal writing, and:

• It applies whether the requirement therein is in the ___________ or whether ___________ for the document not being presented or retained in its original from.

Presented or retained in its original form

Electronic documents shall have the legal effect, validity or enforceability as any other document or legal writing, and:

• Where the law requires that a document be ____________, that requirement is met by an electronic document if-

  • There exists a reliable assurance as to the integrity of the document from the time when it was first generated in its final from; and

  • That document is capable of being displayed to the person to whom it is to be presented:

Functional equivalent of a written document

An electronic document shall be the _____________ under existing laws.

Any statutory rule relating to admissibility of electronic data massages or electronic documents

The Electonic Commerce Act does not modify ___________________, except the rules relating to authentication and best evidence.

Equivalent to the signature of a person on a written document

To legally recognize, an electronic signature on the electronic document shall be ____________________

Legal Recognition of Electronic Signatures

• the signature is an electronic signature and

• proved by showing that a prescribed procedure, not alterable by the parties interested in the electronic document

Method, to identify the party

Under Legal Recognition of Electronic Signatures, it is proved by showing that a prescribed procedure, not alterable by the parties interested in the electronic document, existed under which-

• A _________ is used ____________ 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;

Reliable and appropriate for the purpose

Under Legal Recognition of Electronic Signatures, it is proved by showing that a prescribed procedure, not alterable by the parties interested in the electronic document, existed under which-

• Said method is ________________ for which the electronic document was generated or communicated, in the light of all circumstances, including any relevant agreement;

necessary for the party sought to be bound

Under Legal Recognition of Electronic Signatures, it is proved by showing that a prescribed procedure, not alterable by the parties interested in the electronic document, existed under which-

• It is _______________, in order to proceed further with the transaction to have executed or provided the electronic signature; and

Authorized and enable to verify, make the decision to proceed

Under Legal Recognition of Electronic Signatures, it is proved by showing that a prescribed procedure, not alterable by the parties interested in the electronic document, existed under which-

• The other party is __________ the electronic signature and to ________________ with the transaction authenticated by the same.

Signature of the person to whom it correlates

In any proceedings involving an electronic signature, it shall be presumed that,

• The electronic signature is the _____________

Affixed by that person with the intention of signing or approving

In any proceedings involving an electronic signature, it shall be presumed that,

• The electronic signature was _________________ the electronic document

Knows or has notice of defects in or unreliability, is not reasonable under the circumstances.

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 designed electronic document ___________________ of the signature or

• reliance on the electronic signature __________________

Presented or retained in its original form

Original Documents:

• Where the law requires information to be _______________________, that requirement is met by an electronic data message or electronic document

Evidence aliunde, capable of being displayed

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:

• the integrity of the information from the time when it was first generated in its final form, as an electronic document is shown by ___________ or otherwise; and

• where otherwise it is required that information be presented, that the information is ______________ to the person to whom it is to be presented.

Form of an obligation, the law simply provides consequences for the information

Original Documents:

• It applies whether the requirement therein is in the ___________ or whether ______________ not being presented or retained in its original form.

Criteria for assessing integrity

The ____________ 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

Standard of reliability

The __________ required shall be assessed in the light of purpose for which the information was generated and in the light of all the relevant circumstances.

Demonstrating, substantiating and validating a claimed identity

Until the Supreme Court by appropriate rules shall have so provided, electronic documents, electronic data messages and electronic signatures, shall be authenticated by __________________ of a user, device, or another entity is an information or communication system, among other ways,

Electronic signatures

The ___________ 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 such person, with the intention of authenticating or approving in an electronic data message or electronic document;

Appropriate security procedure was adopted and employed

The electronic data message or electronic document shall be authenticated by proof that an ______________________

Verifying the originator, detecting error or alteration

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:

• _____________ of an electronic data message or electronic document, or

• _____________ in the communication, content or storage of an electronic document or electronic data message from a specific point, which, using algorithms or codes, identifying words or numbers, encryptions, answers back or acknowledgement procedures, or similar security devices.

Supreme Court

The __________ may adopt such other authentication procedures, including the use of

• electronic notarization systems

• 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.

Burden of proving its authenticity

The person seeking to introduce an electronic data message or electronic document in any legal proceeding has the ______________ by evidence capable of supporting a finding that the electronic data message or electronic document is what the person claims it on be.

Integrity of the information and communication system

In the absence of evidence in relation to burden of proof, the ___________________ in which an electronic data message or electronic document is recorded or stored may be established in any legal proceeding

Operating in a manner that did not affect the integrity

Integrity of the information and communication system

• By evidence that:

  • at all material times the information and communication system or other similar device was _______________ 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

Adverse in interest to the party using it

Integrity of the information and communication system

• By showing that the electronic data message or electronic document was recorded or stored by a party to the proceedings who is ________________

Usual and ordinary course of business

Integrity of the information and communication system

• By showing that the electronic data message or electronic document was recorded or stored in the ____________ 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.

Deny the admissibility

In any legal proceedings, nothing in the application of the rules on evidence shall ___________ of an electronic data message or electronic document

Sole ground that it is in electronic form, Best evidence of the agreement and transaction

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 –

• On the _________________; or

• 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 Legal Recognition of Electronic Data Messages and Electronic Documents mentioned above

  shall be the ________________ contained therein.

Generated, stored or communicated, originator was identified, other relevant factors

In assessing the evidential weight of an electronic data message or electronic document, the following shall be given due regard:

• the reliability of the manner in which it was _________________,

• the reliability of the manner in which its _____________, and

• _______________.

Retaining them in the form of an electronic data message or electronic document

The requirement in any provision of law that certain documents be retained in their original form is satisfied by __________________

Accessible, format, identification of its originator and addressee

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

• Remains ________ so as to be usable for subsequent reference;

• Is retained in the ________ 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;

• Enables the _______________, as well as the determination of the date and the time it was sent or received.

Proof by Affidavit

The matters referred on admissibility and 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 cross-examination provided below.

Cross-examined as of right

A deponent of an affidavit referred to above that has been introduced in evidence may be ______________ 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.

Right to cross-examine

Any party to the proceedings has the _____________ a person who is not a party to the proceedings and who did not act under the control of the party using the record proving that the electronic data message or electronic document was recorded or stored in the usual and ordinary course of business.

Formation of Validity of Electronic Contracts: