Electronic contracts have revolutionized cross-border digital transactions by eliminating the delays associated with geographical distance and the physical transfer of paper documents. However, electronic contracts still present significant legal risks.
Electronic contracts: Driving enterprise digital transformation
In today’s highly competitive business environment, the ability to process work, handle paperwork, and sign contracts quickly is a significant competitive advantage. It streamlines operations, enhances customer satisfaction, and reduces costs.
To improve organizational workflows, many businesses are adopting electronic contracts as a replacement for traditional paper-based contracts. Implementing electronic contracts offers numerous benefits, including significant cost savings on printing, shipping, and storage. Additionally, electronic contracts enable seamless approval and signing processes, anytime, anywhere, eliminating the need for physical meetings and wait times.
Common risks associated with electronic contracts
Despite their advantages, electronic contracts still present certain legal risks. These include:
- Difficulty in proving document validity over the long term: Most digital certificates have a maximum validity period of 3 years, and some even expire after 24 hours. With the commonly used digital signing methods and software, it is challenging to prove the validity of documents after the digital certificate expires.
- Inability to eliminate paper from the process: Standard digital signatures, without advanced features, make it impossible to authenticate and ensure the integrity of contracts after the digital certificate expires. As a result, organizations still need to print documents and store them physically.
- Risk of fraud and forgery: Electronic contracts can be easily forged or altered if they do not have timestamps or long-term validation technologies like LTV/LTANS.
Smart eContract: Mitigating legal risks in electronic contracts
With the ability to automate document creation, signing, storage, delivery, and retrieval, SAVIS eContract empowers organizations to build paperless electronic contracts quickly, cost-effectively, and securely. Every action taken on an electronic contract is tracked, ensuring content integrity, accurate identification of parties involved, and secure storage.
Combined with timestamping and long-term validation technology (LTV), which is considered the most effective solution to prevent fraud and forgery in electronic transactions and ensure the legal validity of electronic documents, particularly contracts, parties to the agreement can use these documents as evidence in business and legal activities that require verification.
Start your journey with a consultation – reach out to us today!
- Experts in digital signatures and eArchiving
- The 1st provider of digital signature solutions and services
- First provider of remote signing services, offering a full range of services from basic digital signatures to advanced digital signatures and long-term validation
- Smart eContract – The first and only electronic contract solution in Vietnam
- TrustCA Timestamp – The first and only electronic timestamping service in Vietnam
- TrustCA QTSP Remote Signing – The first remote signing service in Vietnam that meets EU eIDAS QTSP standards
