Legal Issues of Electronic Checks: Comprehensive Analysis of Written Form, Signature and Evidence Issues

1. Written form requirement

The use of electronic checks involves legal requirements for writing, and many countries have laws that require certain transactions to be conducted in writing. The purpose of writing usually has two purposes: one is to ensure the validity of the contract, and the other is to serve as evidence. As a kind of negotiable security, the written form requirement of a check is based on the needs of circulation and transfer. Therefore, the relevant laws of various countries have very strict requirements on it.

2. Signature issue

In addition to being in writing, a check’s validity relies on a signature. The negotiable instrument laws of almost all countries stipulate that the instrument must be personally signed by the drawer or his authorized person to be valid. Signature means the validity of the instrument, the legal liability of the signer, and the transfer of rights in the instrument, among other important factors. For example, in China, according to Article 85 of the Negotiable Instruments Law, the signature of the drawer is a necessary condition for a check. The lack of signature will render the check invalid. Scholars believe that the essence of a signature is to give documents uniqueness. Therefore, electronic signatures (such as digital signatures) can replace traditional handwritten signatures in electronic fund transfers.

3. Evidence effectiveness of electronic data

As for the evidence of electronic data, Chinese law excludes the use of electronic data in certain circumstances. For example, Article 42 of the 1996 Criminal Procedure Law of the People’s Republic of China and Article 63 of the 1987 Administrative Procedure Law of the People’s Republic of China do not give clear evidence status to electronic data. Nonetheless, some scholars argue that electronic data should be considered part of “visual data” and should be interpreted more broadly. In practical applications, the evidential effectiveness of electronic data needs to meet the following conditions:

1. Objectivity: The reliability of electronic data must be guaranteed, including the clarity and completeness of the source of the information, and the security of storage.
2. Relevance: The data must be processed to ensure that the facts relevant to the case can be reasonably reconstructed.
3. Legality: The data collected and stored should be carried out through legal procedures to ensure its evidential strength.

Conclusion

Currently, the legal effect of electronic checks has not been explicitly stipulated in some countries, but its application in actual cases has gradually been recognized. By analogy with current bill laws, such as the relevant provisions of the Uniform Commercial Code, the rights and obligations of all parties in electronic checks can be compared with the legal principles of traditional bill transactions, thereby providing a basis for the legality of electronic transactions. Therefore, as technology develops, the legal framework for electronic checks is expected to be further improved.