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Legal Recognition of Electronic Records & Digital Signatures - Legal Aspects of E-Commerce | E-Commerce - B Com PDF Download

Legal Recognition of Electronic Records: Usually there is a requirement of law that information should be given in written form, and this requirement can also be fulfilled by electronic records.

If the law wants data to be reserved or offered in original form then that condition can also be fulfilled by retaining or presenting the data in the form of electronic records.

The requirement of law to show or record the matter in written or typewritten or printed form, then, such requirement can also be fulfilled electronically through the following ways:

(a) By storing information in an electronic form; and

(b) Making Availability of information so that it can be used for a subsequent reference.

 

 Legal recognition of Digital Signature: According to Section 3 of the Information Technology Act 2000, digital signatures are used to authenticate electronic records.  Electronic records are authenticated by the use of an asymmetric crypto system and hash function.  It is used because an asymmetric crypto system and hash function converts electronic records into nonreadable form so that anyone cannot tamper electronic records.

Digital signature certificates are the electronic equivalent of physical or paper certificates for example membership card, passport etc.  Basically there are three types of digital signature certificates- type I, type II, type III. Each type has different level of security.

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What is the purpose of using digital signatures in electronic records?
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A digital signature certificate includes the following:

  • issuer’s name, organisation and location;
  • owner’s name, organisation and location;
  • date of issue and period of validity;
  • serial number of the document;
  • signature algorithm identifier which identifies the algorithm used by certifying authority to sign digital signature certificate.
  • owner’s public key;
  • date of expiry;
  • the public key of issuer and digital signature.

It is (Digital signature certificates) legally admissible in a court as per the provisions of the IT ACT and hence it serves as evidence under the law and signor cannot repudiate his act subsequently.

Legal Recognition of Electronic Records & Digital Signatures - Legal Aspects of E-Commerce | E-Commerce - B Com

The foundation of electronic governance is detailed in Section 6 of the IT ACT 2000. If anyone wants to fill any form, application or other document with any office/ authority/ body/agency owned or controlled by the government will be seemed satisfied for the issue or grant of any licence/ permit/ sanction or receiving or making payment of money if such filing issue, grant, receipt, or payment is affected by means of such electronic form as may be prescribed by the appropriate government.

They may prescribe the following, which are given below

  • The style and layout in which such electronic records shall be filed, created or issued;
  • The system of payment of any fee or charges for such purposes.
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FAQs on Legal Recognition of Electronic Records & Digital Signatures - Legal Aspects of E-Commerce - E-Commerce - B Com

1. What is the legal recognition of electronic records and digital signatures?
Ans. The legal recognition of electronic records and digital signatures refers to the acceptance of electronic records and digital signatures as legally valid and enforceable evidence in court. It means that electronic records and digital signatures are treated with the same legal status as paper-based records and traditional handwritten signatures.
2. What are electronic records?
Ans. Electronic records are any information that is created, generated, sent, received, or stored in electronic form. Examples of electronic records include emails, electronic invoices, electronic contracts, and electronic financial statements, among others.
3. What are digital signatures?
Ans. A digital signature is an electronic method of signing a document that uses encryption techniques to provide authentication, integrity, and non-repudiation of the signed document. Digital signatures are used to verify the authenticity and validity of electronic records, just as traditional handwritten signatures are used for paper-based records.
4. What are the legal aspects of e-commerce?
Ans. The legal aspects of e-commerce refer to the legal issues that arise from online transactions, such as contract formation, intellectual property rights, privacy, taxes, and consumer protection laws. Businesses engaged in e-commerce must comply with a variety of laws and regulations to ensure that their online transactions are legally valid and enforceable.
5. What are the benefits of using electronic records and digital signatures?
Ans. The benefits of using electronic records and digital signatures include increased efficiency, reduced costs, improved security, and faster processing times. Electronic records and digital signatures are also more environmentally friendly than paper-based records and handwritten signatures, as they reduce the amount of paper and ink used in transactions.
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