UNCITRAL Model Law on Electronic Commerce, published by United Nations in 1996, was one of the most influential pieces of legislation that triggered the wave of development of electronic signature laws around the world including the United States. Most countries based their electronic signature laws on the UN model code. It was for the first time that UN model code equated an electronic signature to manuscript signature and evolved all the functional dynamics for equivalence towards cross-border trade enablement. We grew from telegram to fax machines to email to e-signatures now.
Enforceability of Electronic Signature
We evolved from Telegram as an electronic communication even though it did not explicitly have the instructor’s signature. However, a telegram was accepted as enforceable communication. We then moved to send manually signed documents through fax to recipients. Even though the original document was signed manually, only the signature image got transmitted through fax machines and such fax was accepted as an enforceable document. When we changed over from signing charge slips manually to entering a PIN in credit card swipe machines, the entry of PIN was taken equivalent to signing manual charge slips. In electronic banking, entering OTP and authorizing a payment electronically is equated with signing a cheque to authorize payment to the payee.
Further, several banking mobile apps allow authorizing using facial recognition which is taken as equivalent to a physical manuscript signature. Thus, electronic authentication has evolved into many forms and by default, all of the above methods have become enforceable methods of electronically signing and authorizing. Like how manual frauds existed through forgery of signatures, electronic scams also exist through various sophisticated methods. However, electronic signature has provided more traceability and authenticity than a manuscript signature.
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