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Wednesday, April 2, 2025

Law Made Sim­ple

The Electronic Transactions Act

by

20121209

The Elec­tron­ic Trans­ac­tions Act was passed in 2011 and has been par­tial­ly pro­claimed by Le­gal No­tices 1 and 8 of 2012. The main ob­jec­tives of the act are to fa­cil­i­tate and pro­vide a le­gal frame­work for elec­tron­ic trans­ac­tions and com­merce, to give le­gal ef­fect to elec­tron­ic sig­na­tures, elec­tron­ic doc­u­ments and elec­tron­ic records, and to help es­tab­lish stan­dard rules re­gard­ing the ver­i­fi­ca­tion and in­tegri­ty of elec­tron­ic records.

Elec­tron­ic trans­ac­tions and elec­tron­ic com­merce re­late gen­er­al­ly to com­mu­ni­ca­tions/ac­tiv­i­ties re­lat­ed to the sale or pur­chase of goods and ser­vices over com­put­er net­works and sys­tems in­clud­ing the In­ter­net.

Re­quire­ments for le­gal recog­ni­tion

The act gives le­gal recog­ni­tion to in­for­ma­tion or records in elec­tron­ic form and pro­vides that such doc­u­ments shall not be de­nied le­gal ef­fect sole­ly be­cause it is in elec­tron­ic form.

Fur­ther, elec­tron­ic records shall gen­er­al­ly be con­sid­ered equiv­a­lent to records re­quired to be in writ­ing. Where records or in­for­ma­tion must be pre­sent­ed or kept in its orig­i­nal form, that is, in writ­ing, the act pro­vides that this re­quire­ment is met if there is re­li­able as­sur­ance (through tech­no­log­i­cal se­cu­ri­ty mea­sures) that the in­tegri­ty of the elec­tron­ic record is main­tain­able and ac­ces­si­ble for fu­ture ref­er­ence.

Al­so, the act pro­vides that the le­gal re­quire­ments for keep­ing in­for­ma­tion and re­quests for copies are sat­is­fied if done in the form of elec­tron­ic records.

For­ma­tion of con­tracts

The act pro­vides that any ne­go­ti­a­tion or oth­er deal­ing that goes to the for­ma­tion of a con­trac­tu­al re­la­tion­ship be­tween par­ties can be valid­ly done by elec­tron­ic means. Ad­di­tion­al­ly, the use of elec­tron­ic agents (au­to­mat­ed pro­grams) to as­sist in form­ing a con­trac­tu­al re­la­tion­ship with a par­ty shall be valid un­less cer­tain er­rors oc­cur while deal­ing with the elec­tron­ic agent.

Elec­tron­ic sig­na­tures

Gen­er­al­ly, elec­tron­ic sig­na­tures are recog­nised un­der the act as be­ing valid pro­vid­ed that there is agree­ment by the par­ties for its use and the sig­na­ture meets the min­i­mum stan­dard of re­li­a­bil­i­ty and in­tegri­ty. Elec­tron­ic au­then­ti­ca­tion tech­nol­o­gy shall be used to val­i­date an elec­tron­ic sig­na­ture.

Elec­tron­ic records and pub­lic bod­ies

The act pro­vides that pub­lic bod­ies are gen­er­al­ly au­tho­rised to con­duct its ac­tiv­i­ties re­lat­ed to fil­ing, re­tain­ing, pro­duc­ing or is­su­ing of doc­u­ments (in­clud­ing li­cens­es and per­mits) by elec­tron­ic means. The pub­lic body how­ev­er must have a pro­ce­dure spec­i­fy­ing how the above men­tioned are to be done. In ad­di­tion, doc­u­ments re­quired by a pub­lic body for in­spec­tion can be pro­duced in elec­tron­ic form.

Non-ap­pli­ca­tion of the act

It is to be not­ed that noth­ing in the act re­quires a pub­lic body to ac­cept or is­sue any doc­u­ment in elec­tron­ic form. Al­so, the act does not ap­ply to cer­tain spe­cif­ic pieces of leg­is­la­tion that re­quire writ­ten or orig­i­nal doc­u­ments and sig­na­tures, such as leg­is­la­tion re­lat­ing to the con­veyance of prop­er­ty, mak­ing of wills, en­dorse­ment of ne­go­tiable in­stru­ments or cre­ation of a trust or pow­er of at­tor­ney.

This col­umn is not le­gal ad­vice. If you have a le­gal prob­lem you should con­sult a le­gal ad­vis­er.


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