E-contracts and their disadvantages
What is an E-contract?
An E-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 E-contract in the form of “click to agree”. We see such types of E-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.
Expression by electronic data message
Expression is the most prominent feature of E-contracts. Unless otherwise discussed by the parties, the offer to enter into the contract and the acceptance of the conclusion of the contract shall be expressed through an electronic data message.
In signing a contract, there are at least 3 parties involved. In addition to the two ordinary parties such as a paper contract, which are the seller and the buyer, in an E-contract there is also a third party that is closely linked to the E-contract – that is, the parties providing the contract. network service application, and electronic signature certification authority. The third party does not participate in the signing process, but only participates as a support organization to ensure the effectiveness and legality for the conclusion and performance of the E-contract.
The scope of application is somewhat limited. Article 1 of the Law on Electronic Transactions 2005 stipulates that electronic transactions can only be applied in a few specific fields: activities of State agencies; in the civil, business, commercial and other fields prescribed by law but not applicable to the issuance of certificates of land use rights, ownership of houses and other real estate, documents on inheritance, marriage certificate, divorce decision, birth certificate, death certificate, bill of exchange and other valuable papers.
Borderless The two parties to the contract do not need to be in direct contact because the E-contract is set up in the form of a data message. That is, at any time and place, both parties can actively enter into a contract.
Intangibility, immateriality E-contracts are intangible, immaterial, i.e. exist, demonstrated and stored by electronic data that cannot be perceived by touch, due to the electrical environment death is a digitized environment.
Modernity and accuracy E-contracts are signed using modern technical means, this is the modernity of the contract, and is the result of the development of science, technology and technology in the past this session. From there, it also brings accuracy to the transaction. In the 4.0 era, in the future, E-contracts will be a new trend to gradually replace traditional paper contracts.
#1: Ensure uninterrupted business process
#2: Cost savings in the contract signing process
#3: Improve customer experience
#4: Capture market share
One downside of using a digital contract is that you are relying on web access or your computer system. If you are in a location with no network access, especially in rural areas, you may not be able to access your digital contract when you need it most.
Risk of system crash: If your online storage system or internal computer system crashes, you could lose your data, including your online contract. Some people don’t like to use Some customers prefer paper contracts. If paper is something they are used to, they may not want to use digital software.
Furthermore, it is important to remember that some customers may not have the appropriate software on the device to contract with, or may not know how to use it. Print, sign, scan contracts and email – can be too complicated for some people.
For more information, please contact FPT E-contract: