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Are You Planning To Sign E-Contract During The Pandemic

The current situation poses a great question to the businesses as to how they are signing contracts or documents in the current situation. The obvious answer is through electronic means or electronically, however, how reliable the electronic signatures are or what one should be aware of before signing or accepting a document signed electronically. Therefore, Corporate lawyers of Dubai desire to highlight several important points before signing a contract electronically.

The laws in the UAE, by and large, perceive the legitimacy of e-signatures and will, in general, be technologically neutral (for example not prescriptive with respect to the type of the e-signature). Be that as it may, in certain purviews, particular sorts of electronic marks are assumed legitimate on the off chance that they agree to a specific arrangement of prerequisites forced by national laws. For the most part, for an e-signature to be depended upon, it must be prepared to do precisely confirming the personality of the signatory.

When an e-signature has been used on any document, it shall be accompanied by the date and cannot be further amended. Just an e-signature arrangement, which fulfills this limit, will be enforceable if the legitimacy of the e-signature is tested.

The Ability to Contract 
Business or individuals residing in UAE are commonly allowed to sign the contractual documents that will oversee their contractual relationship as long as it is not restricted under the UAE law or is against the public policy of the country. Importantly, the Federal Law number 5 of 1985 regarding the Commercial Transactions Law of UAE confirms that the contract shall be consensual and easily interpreted without any devious meaning. Ergo, in the present contracts signed during the pandemic, it is important to discuss the impact of COVID-19 in the contract and consequences for failure to perform of contractual duties due to the situation created by the coronavirus.

However, it is evident that contracts are being signed through electronic means, there are several points which must be considered prior to sign the document as follows:

  • The first and foremost concern of any contractual party signing or accepting electronic signature shall first assure that such signatures are accepted under the law.
  • The acceptance of electronic signatures on the contract shall be formally accepted between the parties either through emails or other means of communication or shall be mentioned in the concerned contract.
  • Such a contract shall not exempt by the government to accept electronic signatures or electronic signatures on documents that are restricted for the said organization.
  • Then lastly, the parties shall utilize the ways for electronic signatures which are duly accepted by the law and the parties are not given any benefit if in future any casualty arises and to avoid such circumstances, it is important to seek advise of your legal consultant in Dubai to avoid any future or unseen circumstances.

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