Held
No, Mr. Firma is not correct in denying the validity of his electronic signature on the Minutes, under Section 8 of the Electronic Commerce Act.
Explanation
The Electronic Commerce Act equates electronic signatures with handwritten signatures if certain conditions are met, including that the method used identifies the signer, is reliable, necessary for the transaction, and verifiable by the other party. Electronic documents have the same legal effect as written documents if they maintain integrity and reliability and can be authenticated. The Rules on Electronic Evidence allow electronic signatures to be admitted as functional equivalents of handwritten signatures once authenticated. There is a presumption that an electronic signature belongs to the person it correlates with and was affixed with intent to sign, unless there is notice or knowledge of defects or unreliability. The Supreme Court has affirmed that electronic signatures generated by software or machines that reliably identify the signer and are verifiable are valid and binding.
Application to the facts
In this case, Mr. Firma used the software "Contractsign Professional" to affix his electronic signature on the Minutes. The software sent emails to the directors, including Mr. Firma, with the Minutes to be signed electronically, using stored or automatically generated signatures. Mr. Firma followed the software's instructions, verified his signature, and received a certificate of completion showing the date, time, and IP address of signing. This procedure satisfies the requirements of Section 8 of the Electronic Commerce Act: it identifies Mr. Firma as the signer, uses a reliable and appropriate method for signing the Minutes, is necessary for the transaction (approval of board resolutions), and allows verification by the other party. The certificate of completion and the software's process provide evidence of authenticity and integrity of the electronic signature and document. Under Section 9, the electronic signature is presumed to be Mr. Firma's signature and was affixed with his intent to approve the document. Mr. Firma's denial lacks evidence of defects or unreliability in the signature or process. The law does not require a wet ink signature for validity, and electronic signatures are legally recognized as equivalent. Therefore, the Minutes signed electronically by Mr. Firma are authentic and valid.
"An electronic signature on the electronic document shall be equivalent to the signature of a person on a written document if the signature is an electronic signature and 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 comm…
"Electronic documents shall have the legal effect, validity or enforceability as any other document or legal writing, and — (a) Where the law requires a document to be in writing, that requirement is met by an electronic document if the said electronic document maintains its integrity and reliability and can be authenticated so as to be usable for subsequent reference..."
"An electronic signature or a digital signature authenticated in the manner prescribed hereunder is admissible in evidence as the functional equivalent of the signature of a person on a written document."
"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."
Laws retrieved
Everything retrieval surfaced, not only what the answer relied on. Read the ones it quotes.
- Section 8, Electronic Commerce Act
- Section 6, Electronic Commerce Act
- Section 7, Electronic Commerce Act
- Section 1, Rules on Electronic Evidence
- Section 3, Rules on Electronic Evidence
- Section 9, Electronic Commerce Act
- Section 2, Rules on Electronic Evidence
- Section 11, Electronic Commerce Act
- Section 12, Electronic Commerce Act
- Section 18, Electronic Commerce Act
- Section 10, Electronic Commerce Act
- Section 4, Rules on Electronic Evidence
- Sec 73, Revised Corporation Code of the Philippines
- Section 5, Electronic Commerce Act
"According to A.M. No. 01-7-01-SC, or the Rules on Electronic Evidence, promulgated by the Court and alluded to with regard to the above mentioned authentication process, a "digital signature" refers to an electronic signature consisting of a transformation of an electronic document or an electronic data message using an asymmetric or public cryptosystem such that a person having the initial untransformed electronic document and the signer's public key can accurately determine: (i) whether the transformation was created using the private key that corresponds to the signer's public key; and (ii) whether the initia…
"[CASE] Mcc Industrial Sales Corporation v. Ssangyong Corporation, G.R. No. 170633 (2007-10-17) — MCC INDUSTRIAL SALES CORPORATION, petitioner, vs. SSANGYONG CORPORATION, respondents. — "
'Electronic document' refers to information or the representation of information, data, figures, symbols or other modes of written expression, described or however represented, by which a right is established or an obligation extinguished, or by which a fact may be proved and affirmed, which is received, recorded, transmitted, stored, processed, retrieved or produced electronically. It includes digitally signed documents and any printout or output, readable by sight or other means, which accurately reflects the electronic data message or electronic document. Thus, to be admissible in evidence as an electronic data message or to be considered as the functional equivalent of an original document under ..." (Mcc Industrial Sales Corporation v. Ssangyong Corporation, G.R. No. 170633 (2007-10-17))
According to Watch v. COMELEC, G.R. No. 246332 (2020-12-09), the Supreme Court explained that a digital signature refers to an electronic signature consisting of a transformation of an electronic document or an electronic data message using an asymmetric or public cryptosystem, and that for purposes of the Rules, a digital signature is considered an electronic signature. The Court further stated that an electronic signature may be any distinctive mark or characteristic that represents the identity of a person, and recognized that machine-generated digital signatures may validly be considered the functional equivalent of a digital signature, as they represent the identity of the individual inputting the details. The Court sees no need to disturb the finding that such signatures are valid absent compelling evidence to the contrary.
Cases retrieved
Everything retrieval surfaced, not only what the answer relied on. Read the ones it quotes.