It is already acceptable in law that a contract could still be binding even if it is not physically signed. A signature is often only required for evidentiary purposes. The Act provides that an electronic record meets that requirement if the method of identifying the signatory meets certain requirements (i.e. an electronic signature or electronic certificate). 5. Certification Service Providers: The legislation should make provision for authorizing certification service providers to issue accredited certificates that confirm the veracity of an electronic signature. It should recognize certificates and certification service providers for any other jurisdiction. [Insurance companies have a new potential market in the insurance of the liability of such certification service providers if one of their certificates turns out to be wrongly issued, causing loss to those who relied on it. 6. Formation and validity of contracts and acknowledgement: The legal principle of offer and acceptance, developed over many centuries, is one of the basic requirements for the formation of a contract. Legislation would need to provide that an offer and the acceptance of an offer may be expressed by means of an electronic record. It should establish rules of acknowledgment of receipt of an electronic record. 7. Virtual companies Legislation would need to determine whether an offshore company, which merely offers goods and services electronically from a web site hosted in Grenada or transacts business through a server in Grenada, will be regarded as carrying on business in Grenada, and whether that company will be required to apply to the Government for a permit or incorporate a Grenada company; whether an overseas company with 34 A STRATEGY AND ACTION PLAN FOR GRENADA Anurag Sinha