Section 5 of ITA, 2000 : Section 5: Legal Recognition Of Electronic Signatures

Explanation using Example

Let's consider a hypothetical scenario where a company called XYZ Ltd. is entering into a contract with another company, ABC Ltd. According to traditional laws, this contract would need to be signed by representatives from both companies to be considered legally binding. However, due to the provisions of Section 5 of The Information Technology Act, 2000, the requirement of a physical signature can be bypassed.

Suppose the representatives of both companies are in different cities and need to sign the contract immediately. They can use electronic signatures to authenticate the contract. This could involve using a digital platform to generate a unique electronic signature, which is then affixed to the digital contract document. As per Section 5, this electronic signature is considered as legally valid as a handwritten signature, thus satisfying the requirement of the law. This allows the companies to complete their legal obligations without the need for physical presence or paper documents.