E-COMMERCE RA 8792
ELECTRONIC SIGNATURE (ES)
OBJECTIVE
 facilitate domestic & int’l dealing thru utilization of electronic,
optical and similar medium
 recognize the authenticity & reliability of electronic data
messages or electronic documents
 promote universal use of electronic transactions in the gov't &
by the general public
SPHERE OF APPLICATION
 To any kind of electronic document (commercial or non-
commercial)
DEFINITION OF TERMS:
 Information and Communication System - system for
processing electronic data messages or electronic documents
 Originator - person by whom the electronic document purports
to have been created
 Addressee - person who is intended by the originator to
receive, but does not include intermediary
 Intermediary - person who in behalf of another person sends,
receives and/or stores or provides other services
 Electronic data message - information generated, sent, received
or stored by electronic, optical or similar means
 Electronic signature - refers to any distinctive mark,
characteristic or sound in electronic form, audio is allowed
 Electronic document - information or representation of
information, data, figures, symbols, or other modes of written
expression,
 Electronic key - secret code which secures and defends
sensitive information that crosses over public channels into a
form decipherable only with a matching electronic key
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
 Whether in the form of an obligation or the law simply provides
consequences for the docs not being presented or retained
 when law requires document to be in writing, reqs are met
when it:
 maintain its integrity
 remained complete & unaltered
 reliable
 when law requires that it be presented or retained in its
original form, reqs met when:
 reliable assurance
 capable of being displayed
 ES on an ED shall be equivalent to the signature of a person on
a written document if:
 Sign as an electronic signature
 Proved by showing a prescribed procedure, not alterable,
existed under which:
 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.
 PRESUMPTIONS
 ES is the signature of the person to whom it correlates
 ES was affixed by that person w/ intention of signing or
approving unless
 Person relying on it notice the defect or unreliability
of signature
 Reliance is unreasonable under circumstances
AUTHENTICATION
 ES shall be authenticated 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.
 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
INTEGRITY of Information and Communication System
 Evidence that
 At all material times, it was operating in a manner that did
not affect the integrity
 No other reasonable grounds to doubt its integrity
 Showing it was recorded or stored by a party who is adverse in
interest to the party using it
 Showing it was recorded or stored in the usual & ordinary
course of business
ADMISSIBILITY
 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
ASSESSING EVIDENTIAL WEIGHT
 Following shall be given due regard:
 Reliability in w/c it was generated, stored, or
communicated
 Reliability in w/c its originator was identified
 Other relevant factor
RETENTION
 law requires that EDM/ED satisfy 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
PROOF OF AFFIDAVIT
 Admissibility & presumption of integrity may be presumed to
have been established by an affidavit given to the best of the
deponent’s knowledge as defined in cross-examination
COMMUNICATION
FORMATION OF VALIDITY OF ELECTRONIC CONTRACT
 May be expressed, demonstrated and proved by means of
EDM/ED
 offer
 the acceptance
 other elements
 E-transactions made thru networking among banks
 deemed consummated upon actual dispensing of
cash/debit
 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 addressee as a result from 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.
EXCEPTION:
 duplication of another EDM/ED
 addressee knew or should have known that the EDM/ED
was a duplicate
ACKNOWLEDGEMENT OF RECEIPT
GEN RULE: no acknowledgement of receipt is necessary
EXCEPTION:
 if the parties agree to it
 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
INSTANCES WHEN THE ORIGINATOR CAN REGARD NON-RECEIPT
SINCE NO ACKNOWLEDGEMENT
 When the originator stated the significance of acknowledgment
or the ED is CONDITIONAL upon receipt
 No statement as to significance – originator gave notice that no
acknowledgement received w/in reasonable time
TIME OF DISPATCH
GEN RULE: dispatch occurs when it enters an info system outside the
control of the originator
EXCEPTION: stipulated
TIME OF RECEIPT
 Upon entry in the designated info system
 Upon retrieval by the addressee
 Upon entry in the info system of the addressee
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 addressee has its place of
business
FOR THE PURPOSE OF TAX SITUS:
 more than one place of business: CLOSEST RELATIONSHIP to
the underlying transaction OR PRINCIPAL PLACE of business
 NO principal place of business: HABITUAL RESIDENCE
 USUAL PLACE OF RESIDENCE (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 to be granted or an obligation is to be acquired by
one person and if law requires it to be conveyed
 No ED shall be valid unless terminated & replaced by the use of
paper document
 If a rule of law is compulsory applicable to a contract or
evidenced by a paper document that rule shall not be
applicable to such contract
ELECTRONIC TRANSACTIONS IN GOVERNEMENT
Government use of EDM/ED/ES:
 within 2 years from the date of the effectivity of this act.
OBLIGATIONS UNDER E-COMMERCE ACT

EXTENT OF LIABILITY OF SERVICE PROVIDER

GEN RULE: NO PERSON shall be subject to any civil or criminal
liability if it merely provides access
 Service provider does not have actual knowledge that it is
unlawful or infringes any rights
 Does not receive financial benefit
 Does not directly commit or cause other party to commit
EXCEPTIONS:
 Obli & liability of parties under the EDM or ED
 Any obli founded on contract
 Obli of service provider is under licensing or other
regulatory regime
 Obli imposed under LAW
 Civil liab forms the basis for injuctive relief

LAWFUL ACCESS: only for the person who has legal right, shall not be
available to anyone w/out consent

OBLIGATION OF CONFIDENTIALITY: shall not convey or share

PENALTIES
UNLAWFUL ACT FINE PRISON
Hacking or crackling - Unauthorized MIN: 100K 6 mos – 3 yrs
access MAX: damage
Piracy - Unauthorized copying, MIN: 100K 6 mos – 3 yrs
reproduction MAX: damage
Violation of this Act MAX: 1M MAX: 6 yrs