Hong Kong Law
Under Hong Kong law, the Electronic Transaction Ordinance (ETO) confirms contracts cannot be denied enforceability on the basis that they are concluded electronically. Contracts are generally valid if legally competent parties reach an agreement, this include verbal, electronic or with a physical document. To prove a valid contract, parties may have to present evidence in court. Digital transaction management solutions can provide electronic records that will be admissible under Hong Kong law, to support the authenticity of a contract.
Use Cases for E-sign
Instances where e-signatures are generally considered appropriate:
- corporate secretarial filings
- HR documents, such as new employee onboarding processes including employment contracts, non-disclosure agreements, employee invention agreements, privacy notices, and benefits paperwork
- commercial agreements between corporate entities, including non-disclosure agreements, invoices, purchase orders, sales agreements and service agreements
- consumer agreements, including purchase orders, order confirmations, sales terms, services terms, invoices, shipment documentation, user manuals, and policies
- transfers of intellectual property (e.g., copyright assignments and patents)
- licenses for intellectual property, including patent, copyright, software and trademark
Use Cases Requiring a QES or Physical Signature
There are some cases where a qualified electronic signature (QES) will be necessary. An electronic signing document validates a QES. A QES is considered to be the same as a handwritten signature. Examples include:
- Government leases and grant conditions(Schedule 1 ETO)
- judgments, and lis pendens referred to in the Land Registration Ordinance (Cap 128) by which any parcels of ground tenements or premises in Hong Kong may be affected (Schedule 1 ETO)
- assignment or mortgage within the meaning of the Conveyancing and Property Ordinance (Cap 219) or any other contract relating to or effecting the disposition of immovable property or an interest in immovable property (Schedule 1 ETO)
- a document effecting a floating charge referred to in section 2A of the Land Registration Ordinance (Cap 128) (Schedule 1 ETO)
- oaths and affidavits (Schedule 1 ETO)
- statutory declarations (Schedule 1 ETO)
- judgments or orders of court (Schedule 1 ETO)
- a warrant issued by a court or a magistrate (Schedule 1 ETO)
- negotiable instruments (Schedule 1 ETO)
- employee termination notices
- the creation, execution, variation, revocation, revival or rectification of a will, codicil or any other testamentary document (Schedule 1 ETO)
- the creation, execution, variation or revocation of a trust (other than resulting, implied or constructive trusts) (Schedule 1 ETO)
- the creation, execution, variation or revocation of a power of attorney (Schedule 1 ETO)
- the making or execution of any instrument, including commercial agreements, which is required to be stamped or endorsed under the Stamp Duty Ordinance (Cap 117) other than a contract note to which an agreement under section 5A of that Ordinance relates (Schedule 1 ETO)
