eSignature Legality Guide

None.

According to the E-Commerce Act, an Electronic Signature is defined as “any distinctive mark, characteristic and/or sound in electronic form, representing the identity of a person and attached to or logically associated with the electronic data message or electronic document or any methodology or procedures 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.”

An electronic signature serves as a representation of a person’s identity that is attached to an electronic data message or document, with the intent to authenticate or approve it. This can include any unique mark, characteristic, or sound in electronic form.

Electronic signatures are considered legally equivalent to handwritten signatures, provided that their authenticity can be established. Proof of an electronic signature may be shown if a prescribed procedure, which cannot be altered by the parties involved, is in place where:

• A method is used to identify the person to be bound and to indicate that person’s access to the electronic document necessary for their consent or approval via the electronic signature;
• The method is reliable and suitable for the purpose for which the electronic document was created or communicated, considering all circumstances, including any relevant agreement;
• It is required for the person to be bound to have executed or provided the electronic signature in order to proceed with the transaction; and
• The other party is authorized and able to verify the electronic signature and decide whether to proceed with the transaction authenticated by it.

Additionally, the Rules on Electronic Evidence (Administrative Matter No. 01-07-01-SC) adopts the same definition from Republic Act No. 8792 and further defines a “digital signature” as a specific type of enhanced electronic signature.

A digital signature is described as “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:

• Whether the transformation was created using the private key that corresponds to the signer's public key, and
• Whether the initial electronic document has been changed after the transformation was made.”

In general, contracts are binding regardless of the form in which they are made, as long as all essential requirements for validity are met.

The E-Commerce Act covers all types of data messages and electronic documents used in both commercial and non-commercial contexts, including domestic and international transactions, agreements, arrangements, exchanges, and information storage.

Electronic signatures may be used unless Philippine law specifically requires certain formalities for execution (such as notarization).

Electronic signatures can be authenticated in any of the following ways:

• By presenting evidence that a method or process was used to create and verify a digital signature;
• By any other method provided by law; or
• By any other means that the judge finds sufficient to establish the authenticity of the electronic signature.

Although electronic signatures are not prohibited for use with government agencies, it is advisable to exercise caution when using them for transactions involving such agencies.