Notes for foreign investors on the characteristics of electronic contracts

Legal basis

  • Civil Code 2015
  • Law on Electronic Transactions 2005.

Content

According to the provisions of Article 33 of the Law on Electronic Transactions 2005: “An electronic contract is a contract established in the form of a data message in accordance with the provisions of this Law”. Thus, an electronic contract must first be a contract (as prescribed by civil law) and be established in the form of an electronic data message. Specifically:

 

  • A contract is an agreement between parties on the establishment, change or termination of civil rights and obligations” (as provided for in Article 385 of the 2015 Civil Code).
  • Data messages are expressed in the form of electronic data exchange, electronic documents, electronic mail, telegram, telegraph, fax and other similar forms” (as prescribed in Article 10 of the Law) Vietnam Electronic Transactions 2005).

Information contained in a data message shall not be denied legal validity simply because it is presented in the form of a data message (Article 11). Where the law requires information to be presented in writing, a data message is considered to meet this requirement if:

(i) the information contained in the data message is accessible and

(ii) usable for reference when necessary.

According to the provisions of Article 13 of the Law on Electronic Transactions 2005, a data message is valid as the original when the following conditions are satisfied:

  • The content of the data message is preserved from the moment it is first initialized as a complete data message.

The content of a data message is considered to be complete when such content has not been changed, except for changes in appearance arising during the sending, storing or displaying of data messages;

  • The content of the data message is accessible and usable in its complete form as needed.

Digital Contracting for Law Firms - TechLawyered

Thus, an electronic contract has the inherent characteristics of a contract and the following specific characteristics:

First, on how to set up: an electronic contract is established through the exchange of electronic data, electronic documents, electronic mail, telegram, telegraph, fax and other similar forms. To be able to create an electronic contract, it is necessary to have electronic equipment, internet, electrical system, …

Second, in terms of form, an electronic contract is represented by a data message and displayed through electronic means such as a computer screen, phone or other electronic means capable of displaying data. Electronic data messages are electronic contracts.

Third, regarding the content, the electronic contract is negotiated by the parties or automatically generated by the computer during the transaction.

Fourth, about the subject, in an electronic contract, there is a special subject that is usually not present when the parties sign and perform a traditional contract, which is the organization that authenticates the electronic signature. This third party does not participate in the negotiation, conclusion or performance of an electronic contract, but participates as a support party to ensure the technical requirements and legal validity for the conclusion of the contract. and implementation of e-commerce contracts.

Fifth, regarding the process, electronic contracts are concluded by electronic means, the parties do not necessarily meet face to face to exchange and sign documents.

Above is our consultancy about this issue. If you need more detailed advice and answers as well as how to access this service, please contact directly the Deputy Director of Sales: Lawyer Nhat Nam via hotline: 0912.35.65.75, 0912.35.53.53 or call the free legal consultation hotline 1900.6575 or send a service request via email: lienheluathongbang@gmail.com

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