E-contract: Definition of e-contract and the main transports
What is E-contract?
An electronic contract is a digital contract created and signed digitally. E-contracts can be created online to be emailed to stakeholders to enable them to sign contracts electronically through their mobile devices. The electronic signature made on the electronic document / contract shows that the singer signed the contract after careful review, he accepts the terms and conditions mentioned in the digital contract and voluntarily agree to that contract.
After digitally signing the document, the signer shares it with the document creator as a final step. All the names of the parties connected to the document perform the same process. There is a more common type of electronic contract in the form of “click to agree”. We see such types of electronic contracts when we download any software or want to install it into the computer system. Here the user must click on the “I agree” checkbox to display the content of the terms and conditions of installation of the software.
In most cases, the parties are not in direct contact with each other
Non-physical: In most cases, no handwriting and no handwritten signatures Very high risk factor due to suboptimal security Violation adjudication is a major obstacle to electronic contracts There is no single authority to oversee the entire process, especially for bundled contracts. The digital signature of the electronic contract is used as evidence in court if necessary .
Three main means of electronic contract: Email, Website www , and cyber contract Click to agree Online contract. Topic content includes: Real goods. In which goods are ordered, paid online and delivered Digital products such as software can be ordered Other services: stocks, financial advice, e-banking,…
#1: Ensure uninterrupted business process
#2: Cost savings in the contract signing process
#3: Improve customer experience
#4: Capture market share
Depends on the web
– The key issue with e-contracts is that you need a computer system and a network connection to access the e-contract. This means that you cannot access the contract at a time when you cannot use your computer or electronic device.
Not enough storage space
– Some companies have limited storage space on their servers making it impossible to save all documents. Possibly saved to third party storage, but may be privacy related in some cases. If the company uses a server that is not tightly protected, it will lead to security problems.
Risk of system failure
– For some reason, the computer system or web server crashes can lead to the deletion of all data from that system, which means the loss of all documents related to the contract and even Even the contract is printed.
Electronic signatures have weak or no security, or are capable of providing tamper protection. So even electronic contracts are vulnerable and insecure.
Reliance on proprietary third-party software
– Electronic signatures used in electronic contracts are based on proprietary software, which can be a concern for businesses that do not want to depend on other vendors to sign contracts because it can lead to to matters of confidentiality or secrecy. 6. Reluctance to use electronic contracts
– Some people still prefer paper contracts. They may not be willing to accept the idea of an electronic contract. It is possible that there is no appropriate software on the system, or simply do not know how to use it.
For more information, please contact FPT Electronic Contract:
Joint Stock Commercial Bank automates the process of signing a contract to open a VISA card with FPT.eContract