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Volume 14 Number 3 (July to September 2003) - University of the ...

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<strong>14</strong>22<br />

National Administrative Register <strong>Volume</strong> <strong>14</strong>/3<br />

ment <strong>of</strong> electronic commerce in <strong>the</strong> Philippines with relevant government agencies, without<br />

prejudice <strong>to</strong> <strong>the</strong> provisions <strong>of</strong> Republic Act 7653 (Charter <strong>of</strong> Bangko Sentral ng Pilipinas)<br />

and Republic Act 8791 (General Banking Law <strong>of</strong> 2000);<br />

Whereas, <strong>the</strong> issuance <strong>of</strong> clear, transparent, predictable and enforceable rules <strong>to</strong><br />

clarify and ensure <strong>the</strong> legal validity <strong>of</strong> enforceability <strong>of</strong> electronic signatures and contracts<br />

will encourage and promote <strong>the</strong> development <strong>of</strong> electronic commerce in <strong>the</strong> Philippines,<br />

enhance its competitiveness in <strong>the</strong> new economy, protect <strong>the</strong> consumer, and encourage<br />

efficiency and transparency in commercial transactions;<br />

Whereas, technological developments in electronic au<strong>the</strong>ntication and modes <strong>of</strong> generating<br />

electronic signatures are rapid, ongoing and market-led;<br />

Whereas, rules and guidelines on electronic signatures and contracts that are technology-neutral<br />

will help ensure continued private sec<strong>to</strong>r initiative and innovation, and encourage<br />

consumer trust in <strong>the</strong>se new technologies;<br />

And finally, recognizing that where appropriate, market-driven, ra<strong>the</strong>r than government-imposed<br />

standards, contractual arrangements and codes <strong>of</strong> practice are better <strong>to</strong>ols<br />

for validating electronic transactions and developing user confidence in global electronic<br />

commerce;<br />

Now, <strong>the</strong>refore, pursuant <strong>to</strong> <strong>the</strong> provisions <strong>of</strong> Sections 24 and 29 <strong>of</strong> Republic Act No.<br />

8792, o<strong>the</strong>rwise known as <strong>the</strong> Electronic Commerce Act <strong>of</strong> 2000 (hereinafter referred <strong>to</strong> as<br />

<strong>the</strong> ìActî), <strong>the</strong> following Implementing Rules and Regulations on Electronic Au<strong>the</strong>ntication<br />

and Electronic Signatures (hereinafter referred <strong>to</strong> as <strong>the</strong> ìRulesî) are hereby prescribed and<br />

promulgated for <strong>the</strong> compliance <strong>of</strong> all concerned:<br />

SECTION 1. General Rule <strong>of</strong> Validity - As a general rule, and subject <strong>to</strong> <strong>the</strong> provisions<br />

<strong>of</strong> <strong>the</strong> Electronic Commerce Act <strong>of</strong> 2000 and <strong>the</strong>se Rules:<br />

a. A signature, contract or o<strong>the</strong>r record relating <strong>to</strong> such transaction may not be<br />

denied legal effect, validity, or enforceability solely because it is in electronic<br />

form; and<br />

b. A contract relating <strong>to</strong> such transaction may not be denied legal effect, validity,<br />

or enforceability solely because an electronic signature or electronic document<br />

was used in its formation.<br />

SECTION 2. Scope <strong>of</strong> Application - These Rules apply where electronic signatures<br />

and/or electronic documents are used in <strong>the</strong> context <strong>of</strong> any commercial and non-commercial<br />

transaction, activity or dealings, whe<strong>the</strong>r public or private, occurring between and among<br />

parties. These include, and are not limited <strong>to</strong>, <strong>the</strong> following transactions: <strong>the</strong> sale, supply,<br />

procurement or exchange <strong>of</strong> goods or services, including <strong>the</strong> manufacture, processing,<br />

purchase, sale, supply, procurement or exchange <strong>of</strong> goods or services, including <strong>the</strong> manufacture,<br />

processing, purchase, sale, supply, distribution or transacting in any manner, <strong>of</strong><br />

tangible and intangible property <strong>of</strong> all kinds such as commodities, goods, merchandise,<br />

financial and banking products, patterns, participations, shares <strong>of</strong> s<strong>to</strong>ck, s<strong>of</strong>tware, books,<br />

works <strong>of</strong> art and o<strong>the</strong>r intellectual property; distribution agreement; commercial representation<br />

or agency; <strong>the</strong> filing and payment <strong>of</strong> taxes; fac<strong>to</strong>ring; leasing; construction <strong>of</strong> works;

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