9/25/23, 11:52 PM Electronic Commerce Act of 2000 (RA No.

8792) - ALBURO LAW

Quezon City, Philippines (02)7745-4391

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Decoding the Role of the Electronic Commerce Act of

2000 (Republic Act No. 8792) in Business

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Also read: Be SMART and roam around the GLOBE under the SUN: Highlights of
Republic Act 11202 or the Mobile Number Portability Act

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Modern technology in the form of information technology and communication plays

a vital role in nation-building. With the enactment of Republic Act No. 8792 (RA
8792) or the Electronic Commerce Act of 2000, the information and
communications technology modernized consumer transactions which made an
impact on the Philippine legal system.

Objectives of Electronic Commerce Act

RA 8792 aims to facilitate domestic and international dealings, transactions,

arrangements agreements, contracts and exchanges and storage of information
through the utilization of electronic, optical and similar medium, mode,
instrumentality and technology to recognize the authenticity and reliability of
electronic documents related to such activities and to promote the universal use of
electronic transaction in the government and general public (Sec. 3 of RA 8792). In
view thereof, consumers and businessmen may transact and consummate contracts
through legal electronic means provided in RA 8792.

Legal Recognition of Electronic Documents, and Electronic Signatures

In cases of documents and signatures in electric form, the information shall not be
denied legal effect, validity or enforceability solely on the grounds that it is in the
data message purporting to give rise to such legal effect, or that it is merely
referred to in that electronic data message (Sec. 6 of RA 8792). For evidentiary
purposes, an electronic document shall be the functional equivalent of a written
document under existing laws (Sec. 7 of RA 8792).

On the other hand, as to electronic signature placed on the electronic document, it

shall be equivalent to the signature of a person on a written document if that
signature is 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 or 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. (Sec. 7 of RA
8792)

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In furtherance of the support in favor of the recognition of electronic signature, it

shall be presumed that electronic signature is the signature of the person to whom
it correlates and it 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 noticed of defects in or unreliability of the
signature or reliance on the electronic signature is not reasonable under the
circumstances (Sec. 8 of RA 8792).

Communication of Electronic Data Messages or Documents

Under the Civil Code of the Philippines, all contracts have three (3) essential
elements, these are, consent of the contracting parties, the object which is the
subject matter of the contract and cause of the obligation which is established
(Article 1318 of the Civil Code). Consent is manifested by the meeting of the offer
and the acceptance upon the thing and the cause which are to constitute the
contract (1319 of the Civil Code). Under RA 8792, except when otherwise agreed
by the parties, an offer and its acceptance and such other elements for the
formation of contracts may be expressed, demonstrated, and proved by means of
electronic data messages or electronic documents. 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 contracts is expressed, demonstrated and
proved by means of electronic data messages or electronic documents (Sec. 16 (1)
of RA 8792).

With the passage of the foregoing, the State emphasized the principle that
contracts shall be obligatory, in whatever form they may have been entered into,
provided all the essential requisites for their validity are present (Article 1356 of the
Civil Code).

Consummation of the Transaction Through Electronic Messages or

Documents

The 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. 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 (Sec. 16 (2) of RA
8792).

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E-Commerce in Carriage of Goods

Aside from personal consumer transactions, RA 8792 also applies to contracts of

carriage of goods. In the transport of the goods to the buyer or recipient, RA 8792
provides:

1. Where the law requires that any action referred to contract of carriage of goods be
carried out in writing or by using a paper document, that requirement is met if the action
is carried out by using one or more data messages or electronic documents.
2. The preceding paragraph applies whether the requirement therein is in the form of an
obligation or whether the law simply provides consequences for failing either to carry out
the action in writing or to use a paper document.
3. If a right is to be granted to, or an obligation is to be acquired by, one person and no
person, and if the law requires that, in order to effect this, the right or obligation must be
conveyed to that person by the transfer, or use of, a paper document, that requirement is
met if the right or obligation is conveyed by using one or more electronic data messages
or electronic documents unique;
4. For the purposes of paragraph (3), the standard of reliability required shall be assessed
in the light of the purpose for which the right or obligation was conveyed and in the light
of all the circumstances, including any relevant agreement.
5. Where one or more data messages are used to effect any action in undertaking to deliver
goods to a named person or a person authorized to claim delivery or in granting,
acquiring, renouncing, surrendering, transferring or negotiating rights in goods, no paper
document used to effect any such action is valid unless the use of electronic data
message or electronic document has been terminated and replaced by the used of paper
documents. A paper document issued in these circumstances shall contain a statement
of such termination. The replacement of the electronic data messages or electronic
documents by paper documents shall not affect the rights or obligation of the parties
involved.
6. If a rule of laws is compulsorily applicable to a contract of carriage of goods which is in,
or is evidenced by, a paper document, that rule shall not be inapplicable to such a
contract of carriage of goods which is evidenced by one or more electronic data
messages or electronic documents by reason of the fact that the contract is evidenced by
such electronic data messages or electronic documents instead of by a paper document.

Alburo Alburo and Associates Law Offices specializes in business law and labor
law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at
(02)7745-4391/0917-5772207.

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One thought on “Decoding the Role of the Electronic Commerce Act of 2000
(Republic Act No. 8792) in Business”

KAYSWELL says: Reply

December 4, 2021 at 1:21 pm

Thank you for the auspicious writeup. It in fact was a amusement account it.
Look advanced to more added agreeable from you! However, how can we
communicate?

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