Signing an electronic contract is an increasingly popular method in the world as well as in Vietnam. To better understand the method of signing contracts and electronic documents, FPT.eContract summarizes the information you need to know:
1. Definition of electronic contract
Essentially, an electronic contract is simply a digital version of a regular contract. However, not just an ordinary contract, but a legally enforceable contract.
The electronic contract includes: Offer and acceptance; Consent is based on voluntary principles; Legal capacity; Legal contract.
These conditions are intended to ensure that both parties have the legal capacity to perform, enter into a contract freely and legally, and of the age to enter into it. In addition, the contract must include an offer and a verifiable method of reaching an agreement. An electronic contract that meets these criteria will be considered valid, and may be admissible in court.
2. Features of E-Contracts
Electronic Contracts from Traditional Paper Contracts are distinguished by their physical existence – one of the most important distinguishing features.
For an E-Contract, the parties may not need to be in direct contact or be in the same place and can be defined: Party A makes an offer. Party B can accept or not with the same communication method and at the same location.
E-contracts used to be understood as means used in commerce or consumption, which is the reason for the name “e-commerce”, where most electronic contracts involve buying and selling transactions. However, electronic contracts or documents are now used in almost all areas of life, where there is a need to enter into, where an electronic contract can be performed, from trade in services to real estate, healthcare, insurance, human resources… Various types of contract documents can be applied such as Sales Authorization; Confirm Agent; Dispatch to customers/state agencies, Quality certificate delivery, accounting documents, financial loan contract, credit account creation
3. Benefits of e-Contracts
Convenience, speed, transparency
Electronic contracts can be signed at any place and time without having to meet in person. Not entangled by the director, the absent manager interrupts the business’s transactions.
E-contracts have convenient, fast, accurate and transparent processes and procedures in just a few minutes with automatic signing flows, can be signed in batches to ensure legal requirements and security, helping to improve improve production and business efficiency and contribute to environmental protection
Convenient in management, storage, lookup, reporting
Paper contracts can be costly because of the management, storage, and time-consuming search and reporting, but electronic contracts have solved almost all of the above problems. With modern features, contracts can be easily accessed, tracked, looked up signed contracts, pending contracts or returned contracts thanks to the system’s filtering function. Save time and money.
All of the above advantages are based on the highest purpose, which is to reduce costs for businesses.
With an electronic contract, all user operations from creating, censoring, signing, sending and receiving contracts are authenticated via the internet quickly, without having to spend time and money on printing. , manage, store, deliver the contract or move to the location to sign the contract directly with the customer.
4. Disadvantages of Electronic Contracts
Electronic contracts still have some disadvantages, such as:
Borderless: Parties can sign contracts anytime, anywhere without having to be in the same place. However, if a dispute occurs, it will be difficult to determine the place of contract conclusion, especially for international transactions. The best solution is that the parties need to agree on a clause in the contract that clearly defines this issue, ensures that the risk is resolved by a jurisdiction or has a clear handling mechanism.
Intangibility and immateriality: with this feature, when there is a dispute, it is difficult to prove which is the original and the original signature. The best solution is also that the parties need to have a clear identification of the 3rd party in determining the digital signature, or similar conditions to ensure the validity of the contract.
In addition, data loss or disclosure may occur due to a cyber hacker attack. This is also a risk for the parties in concluding and performing electronic contracts.
As one of the first solution providers and market leaders in electronic and digital contracts, possessing high-level security certificates and ensuring legal compliance. FPT.eContract is the leading provider of e-contract related services for individuals and businesses in Vietnam.
FPT.eContract and businesses activate digital business experiences and ensure uninterrupted business in all circumstances.
For detailed advice on FPT.eContract electronic contract, please contact: 1900 636 191
