recommends that a comprehensive set of statutory definitions be incorporated in the electronic transactions legislation (R.4). 2.1.2 Issues of validity The central issue addressed in an electronic transactions law concerns the validity of electronic communications as a means of executing a range of legal acts. Generally, such validity concerns arise in three distinct though related categories, each of which will generally be addressed in an electronic transaction law: Requirements of form, contract formation and record-keeping and evidential requirements. • Requirements of form Legal and regulatory systems abound with terms and phrases that, while not expressly excluding the use of electronic communications, were clearly used in reference to physical documents and processes, such that uncertainties exist whether electronic alternatives are acceptable. The three concepts most commonly seen as creating potential problems for electronic commerce are requirements for a legal act to be executed ‘in writing’; that a document be ‘signed’, or that an ‘original’ be presented or retained. These requirements often also overlap, e.g. a writing must be signed. In terms of responding to these requirements in an electronic commerce environment, it may be decided to take one of three possible courses of action. Firstly, removal, it may be decided that the requirement is no longer necessary, reflecting an environment or concern no longer present or relevant. In such circumstances, it would be preferable if the requirement was removed, although this may represent a substantial burden in terms of law reform, which could take a considerable period of time. Second, preservation, the need for the requirement may be viewed as continuing to be necessary and that the replacement with electronic alternatives should not be acceptable. As such, the electronic commerce law may expressly exclude its application in specified area, as discussed above. The third, and most common, approach is to liberalise, accepting that electronic communications should be capable of substituting for paper provided that the electronic replacement can exhibit the same or similar functionalities as those represented by the requirement in the first place, such as an evidential function. Provisions should be drafted recognising the validity of electronic communications as meeting as requirement for a ‘writing’, ‘signature’ or ‘original’ and all areas where the law requires a person to file paper documents with public bodies including licensing, certification. Such validity may be subject to certain conditions being met and exemptions may be made for certain specified legal acts. The Task Force recommends the wording used in the United Nations Convention on the Use of Electronic Communications in International Contracts (2005).3 (R.5). • 3 Contract formation Article 9. 8