Legal

Cryptocurrency and Statutory Demands

As cryptocurrency transactions become increasingly common, the English courts are beginning to rule on the use of cryptocurrency in transactions and in particular, on whether a payment in cryptocurrency can form the basis of a statutory demand. Recently, the UK Jurisdiction Taskforce (UKJT) clarified that although cryptocurrencies are capable of being property, a claim for the delivery of certain digital assets does not constitute a debt for a fixed sum. Therefore, as cryptocurrency is not legal tender in the UK, it cannot be used as the basis for a statutory demand.

Mandatory Disclosures

English law prescribes that all companies must disclose certain details in all their company communications. This includes the company’s full name (as registered at Companies House), the jurisdiction to which it is subject, the company number, as well as its registered office. This requirement extends to emails, meaning companies must ensure their footers contain the information above in order to be legally compliant. Do you know the mandatory information for businesses and limited liability companies?

Electronic Signatures

Despite the increasing use of electronic signatures worldwide, there are still strict requirements in place when it comes to signing agreements. The first condition is that all parties signing the contract must intend to enter the contract. The second one is that all usual formalities for signing must be adhered to. For example, when signing a deed, the signature must be witnessed in order for the deed to be valid. As with non-electronic signatures, the witness must be physically present at the time of the electronic signature being completed. However, not all documents can be signed electronically and some documents that will continue to require “wet ink” signatures.