4 Regulations When Signing Electronic Contracts for Business

Are you a business owner and have many questions about the electronic contract signing process? Do you want to save time and optimize the electronic contract signing process for your business? The need to use electronic contracts is increasing. To avoid risks, businesses need to clearly understand some regulations on electronic contracts. Specifically, what are the regulations? The information below from Faro Vietnam will help readers understand better.

1. Concept of electronic contracts

The important content in the regulations on electronic contracts is the regulation of the concept of electronic contracts. Pursuant to Article 33, the Law on Electronic Transactions 2005 stipulates the concept of electronic contracts as follows:

“Article 33. Electronic contracts: 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 is a contract established in the form of a data message according to the provisions of the Law on Electronic Transactions. In which:

• Data message: is information created, sent, received and stored by electronic means.
• Electronic means: is a means that operates based on electrical, electronic, digital, magnetic, wireless transmission, optical, electromagnetic or similar technology.

How to Stay Compliant With E-Signature Legal Requirements

2. Some regulations on electronic contracts that businesses need to understand

There are many regulations on electronic contracts, however, businesses need to pay attention to the main regulations to ensure that the contract is legal and not invalid. Understanding the regulations on electronic contracts will help businesses avoid risks and disputes during the contract implementation process.

2.1 Regulations on electronic contract conclusion

Electronic contract conclusion is the use of data messages to conduct part or all of the transaction during the contract conclusion process. Currently, almost all contracts can be concluded by electronic contracts, except in cases where other laws prescribe the form of the contract or the parties have other agreements.

There are three principles of concluding and performing electronic contracts that enterprises, units and individuals must comply with:

• First, the participating parties have the right to agree to use electronic means in concluding and performing the contract.
• Second, they must comply with the provisions of the Law on Electronic Transactions and the law on contracts.
• Third, the parties have the right to agree on technical requirements, authentication, conditions to ensure integrity and confidentiality related to that electronic contract.

2.2 Regulations on electronic contracts - recognizing the legal value of electronic contracts

Pursuant to Article 34 of the Law on Electronic Transactions, the Law recognizes the legal value of electronic contracts. The legal value of electronic contracts cannot be denied simply because the contract is expressed in the form of data messages.

2.3 Regulations on the time and place of sending electronic contracts

Regulations on the time and place of sending electronic contracts are implemented according to the provisions of Article 17, Law on Electronic Transactions 2005 as follows:

• The time and place of sending contracts may be agreed upon. In case the parties participating in the transaction do not have another agreement, the time and place of sending data messages are regulated as follows:
• The time of sending a data message: is the time when this data message enters the information system beyond the control of the originator;
• The place of sending data messages: is the headquarters of the originator if the originator is an agency or organization or the place of residence of the originator if the originator is an individual.

Note: In case the originator of the electronic contract has multiple headquarters, the place of sending data messages is the headquarters that has the closest connection with the transaction.
 

Legalities of e-signing of contracts and documents in Vietnam

2.4 Regulations on the time and place of receiving electronic contracts

Based on the provisions of Article 19 of the Law on Electronic Transactions, the time and place of receiving electronic contracts is the time and place of receiving data messages. Specifically, if the parties to the contract do not have another agreement, the time and place of receiving data messages are regulated as follows:

2.4.1 Regarding the time of receiving electronic contracts:

In case the recipient has designated an information system to receive data messages, the time of receiving is the time when the data message enters the designated information system;
If the recipient does not designate an information system to receive data messages, the time of receiving data messages is the time when the data message enters any information system of the recipient.

2.4.2 Regarding the location of receiving electronic contracts:

The location of receiving data messages is the headquarters of the recipient if the recipient is an agency or organization or the permanent residence of the recipient if the recipient is an individual. In case the recipient has multiple headquarters, the place of receipt of the data message is the headquarters that has the closest connection with the transaction.

Through some regulations shared in the article, we hope to help businesses, traders, and readers who are using and intend to use electronic contracts in commercial transactions and business cooperation. If you need more assistance, please contact us:

>>>Learn more: Benefits of using Faro Vietnam's Payroll Administration service

CONTACT FARO VIETNAM today for a third party HR solution.

• Faro Vietnam
• Email: service@farovietnam.com.vn

HANOI HEAD OFFICE

• Tel: + 84 24 3974 3091

HO CHI MINH CITY OFFICE

• Tel: + 84 28 3821 4654

Grow your business with our trusted Human Resource Solutions.

.