E-COMMERCE ACT (RA No.

8792)
 To facilitate domestic & internat'l dealing and the likes thru the utilization of electronic, optical
and similar medium, mode, instrumentality & tech.
OBJECTIVE:
 To recognize the authenticity & reliability of electronic data messages or electronic documents
 To promote universal use of Electronic transactions in the gov't & by the general public

SPHERE OF APPLICATION: To any kind of electronic document.

LEGAL RECOGNITION:
 Electronic Data Message (EDM)
 Info shall NOT be denied validity or enforceability SOLELY on the ground that it is in the form of EDM .

 Electronic Documents (ED)

 shall have the legal effect, validity or enforceability as any other document or legal writing.
maintain its integrity
a. Law requires ED remained complete & unaltered
reliable
b. Whether in the form of an obligation or the law simply provides consequences for the docs not being
presented or retained
c. Where the law requires that it be presented or retained in its original form, provided there exists:
 reliable assurance
 capable of being displayed

 Electronic Signature (ES)

 Method is used to identify the party
 Reliable & appropriate for the purpose
 Necessary for the party sought to be bound
 Other party is authorized & enable to verify the ES and to make the decision to proceed.

AUTHENTICATION :
a. ES shall be auhtenticated by the proof that a letter, character, number or other symbol in electronic form
representing the persons named by the appropriate methodology or security procedures with the intention of
authenticating or approving.
b. EDM/ED shall be authenticated by proof that appropriate security procedure was adopted & employed for:
 verifying the originator
 detecting error or alteration

BURDEN OF PROOF: The person seeking to introduce an EDM/ED

ADMISSIBILITY & WEIGHT OF EDM/ED:

 Nothing shall deny EDM/ED in evidence:
 on the SOLE ground that it is in electronic form
 that it is NOT in the standard written form
 Following shall be given due regard:
 manner of generation, storation, or communication
 manner in w/c its originator was identified
 whatnots

RETENTION:
 law requires that EDM/ED satisfiy retention as the original form, provided:
 Remains accessible so as to be usable for subsequent reference
 Retained in the format in w/c it was generated
 Enable the identification of its originator/addressee
 mentioned above is satisfied by using services of a 3rd party
COMMUNICATION:
FORMATION OF VALIDITY:
 May be expressed in EDM/ED
 E-transactions made thru
networking among banks
offer
the acceptance
other elements
deemed consummated upon actual dispensing of cash/debit/credit
obligation of one bank, entity, or person shall be considered absolute &
shall NOT be subjected to the process of preference of credits.

ATTRIBUTION:
 EDM/ED is that of the originator;
 If it was sent by the originator himself
 As between originator and addressee
 deemed to be that of the ORIGINATOR if it was sent:
 by the person who had the authority to act on behalf of the originator
 by an info system programmed by, or on behalf of the originator
 deemed to be that of the ADDRESSEE if it was sent:
 addressee properly applied a procedure previously agreed to by the originator
 received by addresse as a result form the actions of a person whose relationship w/ the originator
or agent enabled that person to gain access
 Addressee is entitled to regard each EDM/ED as a separate EDM/ED and to act on that assumption.
EXP:  duplication of another EDM/ED
 adsressee knew or should have known that the EDM/ED was a duplicate

ACKNOWLEDGEMENT OF RECEIPT:
GR: NO ACKNOWLEDGEMENT OF RECEIPT IS NECESSARY
XPNs:
l if the parties agree to it
l Originator requested in the EDM/ED

Modes of acknowledgement when required:

 agreement must be followed
 no agreement
 any communication by the addressee
 any conduct of the addressee sufficient to indicate the receipt to the originator

TIME OF DISPATCH:
GR: when it enters an info system outside the control of the originator
except unless otherwise agreed upon

TIME OF RECEIPT:
Unless otherwise agreed upon:
 Upon entry in the designated info system
 Upon retrieval by the addressee
 Upon entry in the info system of the addresee

PLACE OF DISPATCH & RECEIPT

Unless otherwise agreed upon, deemed to be:
 dispatched- place where the originator has its place of business
 received- at the place where the addresse has its place of business

for the purpose of tax situs:

 O/A has more than one place of business closest relationship to the underlying transaction
no underlying transaction, principal place of business
 O/A does not have a principal place of business: HABITUAL RESIDENCE
 USUAL PLACE OF RESIDENCE- in relation to body corporate, means place where it was incorporated.
ELECTRONIC COMMERCE IN CARRIAGE OF GOODS:
Transport Documents:
EDM/ED is sufficient:
 Law requires contract be in writing
 If a right is granted to or an obligation is to be acquired by one person.
 when one or more EDM/ED are used to effect any action, no paper docs used to effect and such action is valid
unless the use of EDM/ED has been terminated & replaced by the use of paper docs. A paper document issued in
these circumstances shall contain statement of such termination.
 If a rule of law is compulsory applicable to a contract

ELECTRONIC TRANSACTIONS IN GOVERNEMENT

Government use of EDM/ED/ES:
 within 2 years from the date of the effectivity of this act.