TEAM MEMBERS : NAMEMATRIX NO. AMAI A/P EH POO SAYNIE PHONGSWAT A/P E TENG SITI SARAH BINTI ABDUL MUSAWIL THAANIALAKSHMI RAVINDRAN TAN JING HONG MOHD RIZAL BIN ZAINAL YUAN DONG JIAN ELECTRONIC COMMERCE ACT 2006 ELECTRONIC COMMERCE ACT 2006

According to Laws of Malaysia Act 658, Electronic Commerce Act 2006 can be defined as an act to provide for legal recognition of electronic messages in commercial transactions The Act applies to any commercial transaction conducted through electronic means including commercial transactions by the Federal and State Governments. Electronic and electronic messages can be defined as the technology of utilizing electrical, optical, magnetic, electromagnetic, biometric, photonic or other similar technology. Commercial transactions is a single communication or multiple communications of a commercial nature, whether contractual or not, which includes any matters relating to the supply or exchange of goods or services, agency, investments, financing, banking and insurance. The Act also contains provisions setting out how to determine the ‘who, what, where and when’ of an electronic message.

SUMMARY OF ELECTRONIC COMMERCE ACT 2006  Part 1: Preliminary  Part 2: Legal Recognition of Electronic Message  Part 3: Fulfilment of Legal Requirement by Electronic means  Part 4: Communication of Electronic Message  Part 5: Miscellaneous

P ART 1: P RELIMINARY Section 1 : Short title and commencement Section 2 : Application Section 3 : Use not mandatory Section 4 : Reference to other written laws, the application must be supplement and without prejudice to any other laws. Section 5 : Interpretation include electronic, minister, electronic message, originator, addressee, information processing system, electronic signature and commercial transactions.

P ART 2 – L EGAL R ECOGNITION OF E LECTRONIC M ESSAGE Section 6 : Legal recognition of electronic message, any information shall not be denied legal effect referred to in that electronic message. Section 7 : Formation and validity of contract, any related communication by an electronic message and validity or enforceability on the ground that an electronic message.

P ART 3 – F ULFILMENT OF L EGAL R EQUIREMENT BY E LECTRONIC M EANS Section 8 : Information to be in writing, the requirement is fulfilled if the information is contained in an electronic message that is accessible and intelligible. Section 9 : Signature (1) : A signature of a person on a document, the document in the form of an electronic message by an electronic signature. (2) : An electronic signature is as reliable as is appreciate. (3) : Any digital signature used as an electronic signature in any commercial transaction. Section 10 : A seal to be affixed to a document, the document is the form of an electronic message.

P ART 4 – C OMMUNICATION OF E LECTRONIC M ESSAGE Section 18 : Where an addressee receives an electronic message, the addresse is entitled to regard the electronic message s being what the originator intended to send, and to act on that presumption, unless the addressee knew or should have known, had he exercised reasonable care or used any agreed procedure, that the transmission resulted in any error in the electronic message received. Section 24 : Acknowledgement of receipt - This section applies where, on or before sending an electronic message, or in the electronic message, the originator has requested or agreed with the addressee that receipt of the electronic message is to be acknowledgement.

P ART 5 – M ISCELLANEOUS Section 25 : The Minister may make such regulations as are necessary or expedient for giving full effect to the provisions of this Act.

The enforcement of this Act is to affirms the legal validity of commercial transactions. The Act stipulate that if the document is in the form of an electronic message then can be executed by an electronic signature. However, this is subject to conditions that the electronic signature has to associated with the electronic document and adequately indicate the person’s approval of the information in the document and be reliable. The enforcement of this Act is to affirms the legal validity of commercial transactions. The Act stipulate that if the document is in the form of an electronic message then can be executed by an electronic signature. However, this is subject to conditions that the electronic signature has to associated with the electronic document and adequately indicate the person’s approval of the information in the document and be reliable. FULFILMENT OF LEGAL REQUIREMENTS BY ELECTRONIC MEANS

The electronic copy of the document must be accessible and intelligible for future reference and has to identify the origin and destination of the document and the date and time it was sent or received. The document in the form of an electronic message is substantially the same way as the prescribed form, accessible and intelligible for subsequent reference and is capable of being retained, it will be considered sufficient to fulfil that requirement. The electronic copy of the document must be accessible and intelligible for future reference and has to identify the origin and destination of the document and the date and time it was sent or received. The document in the form of an electronic message is substantially the same way as the prescribed form, accessible and intelligible for subsequent reference and is capable of being retained, it will be considered sufficient to fulfil that requirement.

C OMMUNICATION OF E LECTRONIC M ESSAGE WHO WHAT WHERE WHEN

WHO- message is deemed to be sent by the originator of the message. WHAT- what message the originator intend to send? WHERE - determine the location of dispatch and receipt of electronic messages. WHEN- message is deemed to be received when the message enters the designated information system.

Y AM K ONG S ENG & A NOR V Y EE W ENG K AI Legal requirement is writing. Can use electronic evidence such as short messaging service ('SMS') ? Plaintiff use SMS service to ask defendant to pay outstanding sum due to fail to refund it. Defendant agree to pay and use SMS service to reply the Plaintiff due the writ is filed. The Court of Appeal’s decision is SMS being an electronic short message could not be said to be in writing and was not signed as required by S27(1) of the Limitation Act 1953.

K EPITIGALLA R UBBER E STATES L TD. V. N ATIONAL B ANK OF I NDIA (1909) 2 K. B 1010 Legal requirement is signature. Fraudulent Transaction The secretary of a company forged the signatures of two of the directors of the company to a number of cheques which purported to have been drawn by the directors on behalf of the company for 60 days.

CONCLUSION The Electronic Commerce Act (ECA) (Act 658) provides for legal recognition of electronic messages in commercial transactions, the use of the electronic messages to fulfil legal requirements and to enable and facilitate commercial transactions through the use of electronic means and other related matters. It’s applied to any commercial transaction conducted through electronic means including commercial transactions by the Federal and State Governments. Furthermore, it’s a step forward in the regulation of contracts affected by electronic means. It lays down the legal principles that apply to the formation of such contracts. Moreover, it’s lays down the requirements that have to be satisfied to establish the terms of these contracts, thereby enabling parties to put in place infrastructure that is capable of fulfilling these requirement. The Electronic Commerce Act (ECA) (Act 658) provides for legal recognition of electronic messages in commercial transactions, the use of the electronic messages to fulfil legal requirements and to enable and facilitate commercial transactions through the use of electronic means and other related matters. It’s applied to any commercial transaction conducted through electronic means including commercial transactions by the Federal and State Governments. Furthermore, it’s a step forward in the regulation of contracts affected by electronic means. It lays down the legal principles that apply to the formation of such contracts. Moreover, it’s lays down the requirements that have to be satisfied to establish the terms of these contracts, thereby enabling parties to put in place infrastructure that is capable of fulfilling these requirement.