The market will be quick to assess the value of authentication or certification by any particular provider or category of providers. However, one useful legislative step which could be taken would be to remove any doubt about the effectiveness of a contract entered into by parties communicating electronically. The English courts have so far been admirably forward looking in their attitude to electronic communications. However, it cannot be said that the law is entirely clear on this issue or that there is complete confidence in industry about the ability of parties to enter into valid contracts by these means. Also, certain statutes require the use of writing or signature, in various types of transaction.
Legislation is needed to clarify their effect in relation to electronic communications.
A related matter is the desirability of legislative clarification of the status of an electronically concluded contract which requires some other step to be fully effective. For example, a conveyance of registered land must be registered at the Land Registry if it is to be effective against a third party who purports to acquire an interest in the land at a later date. In our view, a study needs to be carried out to establish the range of transactions to which special requirements of this kind apply and it then needs to be decided how electronically concluded contracts are to be treated. This, in our view, should be resisted. The existing controls on communications in other media, on paper, by telephone, fax and telex, are in our view adequate to prevent the misuse of the new electronic media.