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What are the legal implications of signing a contract with DSC?

Legal Validity Under IT Act, 2000

  • Digital Signature Certificates are legally recognized under the Information Technology Act, 2000.
  • A contract signed using a valid DSC has the same legal effect as one signed by hand.
  • Section 5 of the Act states that digital signatures are legally enforceable.
  • Such contracts are binding on the parties involved.
  • Courts accept DSC-signed documents as valid legal evidence.

Authentication and Non-Repudiation

  • DSC ensures that the signatory’s identity is authenticated.
  • Once signed, the signer cannot deny their involvement in the contract.
  • This principle of non-repudiation adds strong legal weight to the agreement.
  • It reduces the chances of disputes over the signatory’s intent.
  • The signature time and identity are recorded in the digital trail.

Tamper-Proof and Secure Signing

  • A digitally signed contract is protected from unauthorized changes.
  • Any alteration after signing renders the document invalid.
  • This secures the contract’s integrity and authenticity.
  • It prevents forgery or manipulation of terms post-signature.
  • It helps establish a secure chain of custody for the document.

Admissibility in Legal Proceedings

  • Courts and tribunals in India accept digitally signed contracts.
  • The signatory must present a valid and unrevoked certificate.
  • The certificate must be issued by a licensed Certifying Authority.
  • The digital signature must be verifiable through standard methods.
  • Proper logging and documentation support its legal enforceability.

Responsibilities and Liabilities of the Signer

  • The signer is fully accountable for the obligations mentioned in the contract.
  • Misuse or unauthorized access to DSC can result in legal penalties.
  • Organizations must restrict DSC access to authorized personnel only.
  • If misused, the signer may face civil or criminal liability.
  • Proper management of DSCs ensures compliance and risk mitigation.

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