E Commerce Act R.A. No. 8792
E Commerce Act R.A. No. 8792
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ELECTRONIC
COMMERCE ACT OF
2000
(Republic Act No.
8792)
START
Overview PAGE
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Policy of the
Law
Objective of the
Law
Sphere of
Application
Definition of
Terms
Overview PAGE
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APPLICATION 07
"Information and communication system" refers to a system intended for and capable
of generating, sending, receiving, storing or otherwise processing electronic data
messages or 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 data message or electronic document.
DEFINITION OF TERMS PAGE
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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.
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Section 7. Legal Recognition of Electronic Documents
DOCUMENTS
Electronic documents shall have the legal effect, validity or enforceability as any other document or
legal.
2. Document must be in original form. Where the law requires that a document be presented or
retained in its original form, that requirement is met by an electronic document if:
(a) There exists a reliable assurance as to the integrity of the document from the time
when it was first generated in its final form; and
(b) That document is capable of being displayed to the person to whom it is to be
presented: Provided, That no provision of this Act shall apply to vary any and all requirements of
existing laws on formalities required in the execution of documents for their validity.
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Section 8. Legal Recognition of Electronic Signatures
An electronic signature on the electronic document 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 the circumstances, including any relevant
agreement;
(c) It is necessary for the party sought to be bound, in 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.
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Section 9. Presumption Relating to Electronic Signatures
DOCUMENTS
In any proceedings involving an electronic signature, it shall be presumed that:
(a) The electronic signature is the signature of the person to whom it correlates; and
(b) 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 signed
electronic document knows or has notice of defects in or unreliability of the signature or reliance
on the electronic signature is not reasonable under the circumstances.
(c) The electronic signature was affixed by that person with the intention of authenticating or
approving the electronic document to which it is related or to indicate such person's consent to
thee transaction embodied therein; and
(d) The methods or processes utilized to affix or verify the electronic signature operated
without default.
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Section 9. Presumption Relating to Electronic Signatures
DOCUMENTS
(1) 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:
(a) the integrity of the information from the time when it was first generated in its
final form, as an electronic data message or electronic document is shown by evidence
aliunde or otherwise; and
(b) where it is required that information be presented, that the information is
capable of being displayed to the person to whom it is to be presented.
(2) Paragraph (1) applies whether the requirement therein is in the form of an obligation or
whether the law simply provides consequences for the information not being presented or
retained in its original form.
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Section 10. Original Documents DOCUMENTS
(2) When an entry is repeated in the regular course of business, one being copied from another at or
near the time of the transaction, all the entries are likewise equally regarded as originals.
(3) When a document is in two or more copies executed at or about the same time with identical
contents, or is a counterpart produced by the same impression as the original, or from the same
matrix, or by mechanical or electronic re-recording, or by chemical reproduction, or by other
equivalent techniques which accurately reproduces the original, such copies or duplicates shall be
regarded as the equivalent of the original.
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Section 10. Original Documents DOCUMENTS
"Duplicate original copies" or " multiple original copies" wherein two or more copies are
executed at or about the same time with identical contents are contemplated in one and
three above. If the copy is generated after the original is executed, it may be called a
"print-out or output" based on the definition of an electronic document, or a
"counterpart" based on Section 2, Rule 4 of the Rules on Electronic Evidence.
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Section 11. Authentication of Electronic Data Messages and Electronic Documents
Until the Supreme Court by appropriate rules shall have so provided, electronic documents,
electronic data messages and electronic signatures, shall be authenticated by demonstrating,
substantiating and validating a claimed identity of a user, device, or another entity in an
information or communication system, among other ways, as follows:
(a) The electronic signature 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 a person
and executed or adopted by such person, with the intention of authenticating or approving an
electronic data message or electronic document;
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Section 11. Authentication of DOCUMENTS
Electronic Data Messages and Electronic
Documents
(b) The electronic data message and electronic document shall be authenticated by
proof that an appropriate security procedure, when applicable was adopted and
employed for the purpose of verifying the originator of an electronic data message
and/or electronic document, on detecting error or alteration in the communication,
content or storage of an electronic document or electronic data message from a specific
point, which, using algorithm or codes, identifying words or numbers, encryptions,
answers back or acknowledgment procedures, or similar security devices.
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Section 11. Authentication of DOCUMENTS
Electronic Data Messages and Electronic
Documents
The Supreme Court may adopt such other authentication procedures, including the use
of electronic notarization systems as necessary and advisable, as well as the certificate
of authentication on printed or hard copies of the electronic document or electronic data
messages by electronic notaries, service providers and other duly recognized or
appointed certification authorities.
The person seeking to introduce an electronic data message and electronic document in
any legal proceeding has the burden of proving its authenticity by evidence capable of
supporting a finding that the electronic data message and electronic document is what
the person claims it to be.
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Section 11. Authentication of Electronic Data Messages and Electronic Documents
DOCUMENTS
In the absence of evidence to the contrary, the integrity of the information and communication
system in which an electronic data message or electronic document is recorded or stored may be
established in any legal proceeding:
(a) By evidence that at all material times the information and communication system or other
similar device was operating in a manner that did not affect the integrity of the electronic data
message and/or electronic document, and there are no other reasonable grounds to doubt the
integrity of the information and communication system;
(b) By showing that the electronic data message and/or electronic document was recorded or
stored by a party to the proceedings who is adverse in interest to the party using it; or
(c) By showing that the electronic data message and/or electronic document was recorded or stored in
the usual and ordinary course of business 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.
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Section 12. Admissibility and Evidential Weight of Electronic Data Message and Electronic
DOCUMENTS
Documents
Original of an electronic document
An electronic document shall be regarded as the equivalent of an original document under the Best
Evidence Rule if it is a print-out or output readable by sight or other means, shown to reflect the data
accurately.
GENERAL RULE:
An electronic document is equivalent to an original in the following instances:
(a) When a document is in two or more copies executed at or about the same time with
identical contents;
(b) It is a counterpart produced by the same impression as the original, or from the same matrix,
or by mechanical or electronic re-recording, or by chemical reproduction;
(c) By other equivalent techniques which accurately reproduces the original, such copies are
duplicates shall be regarded as the equivalent of the original.
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Section 12. Admissibility and Evidential
DOCUMENTSWeight of Electronic Data Message
and Electronic Documents
EXCEPTION:
Not withstanding the foregoing, copies or duplicates shall not be admissible to the same
extent as the original if;
The above requirement is satisfied by using the services of a third party, provided that the
conditions set forth in sub-paragraphs (i), (ii) and (iii) of paragraph (a) are met.
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Section 14. Proof By Affidavit DOCUMENTS
Affidavit of Evidence
All matters relating to the admissibility and evidinciary weight of an electronic document
may be established by an affidavit stating facts of direct personal knowledge of the
affiant or based on authentic records. The affidavit must affirmatively show the
competence of the affiant to testify on the matters contained therein.
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Section 15. Cross-Examination DOCUMENTS
Cross-examination of deponent
The affiant shall be made to affirm the contents of the affidavit in open court and may
be cross-examined as a matter of right by the adverse party.
In the absence of such authentication through the affidavit of the custodian or other
qualified person, the said annexes or attachments cannot be admitted and appreciated
as business records and accepted from the rule on hearsay evidence.
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Section 15. Cross-Examination DOCUMENTS
Cross-examination of deponent
The person seeking to introduce an electronic document in any legal proceeding has the
burden of proving it's authenticity.
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(1) Except as otherwise agreed by the parties, an offer, the acceptance of an offer and
such other elements required under existing laws for the formation of contracts may be
expressed in, demonstrated and proved by means of electronic data message or
electronic documents and 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 the
contracts is expressed, demonstrated and proved by means of electronic documents.
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(2) 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: Provided that 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.
(2) As between the originator and the addressee, an electronic data message or electronic document is deemed to
be that of the originator if it was sent
(a) by a person who had the authority to act on behalf of the originator data message or electronic document; or
espect electronic
(b) by an information system programmed by, or on behalf of the originator to operate automatically..
(3) As between the originator and the addressee, an addressee is entitled to regard an electronic data message or
electronic document as being that of the originator, and to act on that assumption, if:
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(a) in order to ascertain whether the electronic data message or electronic document was that of the originator, the
addressee properly applied a procedure previously agreed to by the originator for that purpose; or
(b) the electronic data message or electronic document as received by the addressee resulted from the actions of a
person whose relationship with the originator or with any agent of the originator enabled that person to gain
access to a method used by the originator to identify electronic data messages as his own.
(a) as of the time when the addressee has both received notice from the originator that the electronic data
message or electronic document is not that of the originator, and has reasonable time to act accordingly; or
(a) Where the originator has not agreed with the addressee that the acknowledgment be given in a
particular form or by a particular method, an acknowledgment may be given by or through any
communication by the addressee, automated or otherwise, or any conduct of the addressee,sufficient
to indicate to the originator that the electronic data message or electronic document has been
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COMMUNICATION OF ELECTRONIC DATA MESSAGE AND ELECTRONIC
(b) DOCUMENTS
Where the originator has stated that the effect or significance of the electronic data message or
electronic document is conditional on receipt of the acknowledgment thereof, the electronic data
message or electronic document is treated as though it has never been sent, until the acknowledgment
is received.
(c) Where the originator has not stated that the effect or significance of the electronic data message or
electronic document is conditional on receipt of the acknowledgment, and the acknowledgment has not
been received by the originator within the time specified or agreed or, if no time has been specified or
agreed, within a reasonable time, the originator may give notice to the addressee stating that no
acknowledgment has been received and specifying a reasonable time by which the acknowledgment
must be received; and if the acknowledgment is not received within the time specified in subparagraph
(c), the originator may, upon notice to the addressee, treat the electronic document or electronic data
message as though it had never been sent, or exercise other rights it may have.
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Sec. 21. Time of Dispatch of Electronic Data Messages or Electronic Documents
Unless otherwise agreed between the originator and the addressee, the dispatch of an electronic data message or
electronic document occurs when it enters an information system outside the control of the originator or of the
person who sent the electronic data message or electronic document on behalf of the originator.
(a) If the addressee has designated an information system for the purpose of receiving electronic data message or
electronic document, receipt occurs at the time when the electronic data message or electronic document enters
the designated information system: Provided, however, that if the originator and the addressee are both
participants in the designated information system, receipt occurs at the time when the electronic data message or
electronic document is retrieved by the addressee.
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(b) If the electronic data messageDOCUMENTS
or electronic document is sent to an information
system of the addressee that is not the designated information system, receipt occurs
at the time when the electronic data message or electronic document is retrieved by
the addressee;
(c) If the addressee has not designated an information system, receipt occurs when
the electronic data message or electronic document enters an information system of
the addressee.
These rules apply notwithstanding that the place where the information system is
located may be different from the place where the electronic data message or
electronic document is deemed to be received.
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Sec. 23. Place of Dispatch and Receipt of DOCUMENTS
Electronic Data Messages or Electronic Documents
Unless otherwise agreed between the originator and the addressee, an electronic data message or
electronic document is deemed to be dispatched at the place where the originator has its place of
business and received at the place where the addressee has its place of business. This rule shall
apply even if the originator or addressee had used a laptop or other portable device to transmit or
receive his electronic data message or electronic document. This rule shall also apply to
determine the tax situs of such transaction.
a. If the originator or the addressee has more than one place of business, the place of business is
that which has the closest relationship to the underlying transaction or, where there is no
underlying transaction, the principal place of business.
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b. If the originator or the addressee does not have a place of business, reference is to be made
to its habitual residence; or
c. The "usual place of residence in relation to a body corporate, means the place where it is
incorporated or otherwise legally constituted.
2. Paragraph (1) 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 other 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: Provided, That
a reliable method is used to render such electronic data messages or electronic documents unique.
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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 electronic data messages or electronic documents are used to effect any
action in subparagraphs (f) and (g) on actions related to contracts of carriage of 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 use of paper documents. A paper
document issued in these circumstances shall contain a statement of such termination. The
replacement of electronic data messages or electronic documents by paper documents shall not
affect the rights or obligations of the parties involved.
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YOU !
Sarmiento, Janice
John
Manlagnit , Mark
Sapanta, Caren