Do digital signatures have legal legality?

So we want to introduce digital signatures, but we need to ensure they are legitimate. This is understandable. After all, a contract is only legally valid if all parties sign it. For example, if your business relies on signed forms or contracts, a digital signature should be just as accurate as a typed signature.

Fortunately, in many countries worldwide, legislation is in place to ensure that electronic signatures are legally recognized in business transactions.

Additionally, the MLEC contains a set of internationally recognized rules designed to remove legal barriers to electronic commerce and promote the adoption and development of digital signatures worldwide.

Differences between digital signatures and electronic signatures

Although many people use these terms interchangeably, electronic and digital signatures are not identical. From a legal standpoint, this distinction is crucial.

• Moreover, digital signatures are the most comprehensive solution that uses electronic processes to add signatures to documents and transactions. This type of signature has grown incredibly over time as documents and communications have increasingly moved into the digital realm, and businesses and consumers worldwide have come to appreciate the speed and convenience of this solution. However, different types of digital signatures allow users to sign digital documents and provide some level of personal authentication.
• Digital signatures are the most secure form of electronic signature. Digital certificates use PKI digital certificates issued by a trusted Certificate Authority (C.A.), such as Sectigo, to properly verify the requestor’s identity. Such authentication is necessary to ensure the integrity of electronic documents, and linking the signer’s identity directly to the record is the best way to ensure its legitimacy.
• Other types of eSignatures use different, less secure types of electronic authentication. These may include email addresses, phone numbers, and additional contact information.
• In addition, people must meet several conditions for a digital signature and for considering it legitimate. The most basic requirement is that the signer’s identity must have a link with an encrypted and verifiable certificate or similar document. PKI-based digital certificates can fulfill this purpose. In this variant, an algorithm creates a public/private key pair that verifies the signer’s identity and validates the certificate. In this case, the signature will consider invalid and associated with the signer’s identity.

Creating a digital signature is much more complex than a simple electronic signature and depends heavily on the specific use case.

Are electronic signatures legally binding?

E-signatures are legally binding in most countries of the world. In the United States and Europe, the use of electronic signatures is based on specific legislation. In some countries, such as Mexico, there is no uniform law, but it is legally recognized.

The United States

In the United States, electronic signatures are legal under the Electronic Signatures in Global and National Commerce Act (ESIGN). The Uniform Electronic Transactions Act (UETA) at the state and territory level also applies.

• Under ESIGN, eSignatures and records are covered by the Act to the extent that they are related to transactions. According to ESIGN, a transaction is a series of acts related to business conduct and commercial or consumer relationships.
• An electronic signature is a process, sound, or symbol associated with the document used to sign it. Under U.S. law, the mere fact that an electronic signature is made electronically does not negate its legal validity or enforceability.

Canada

Under Canadian law, an electronic signature may consist of letters, numbers, characters, or other symbols associated with an electronic document. Under Canadian law, a secure electronic signature is unique to the signatory, and the process or technology used is under the exclusive control of the signatory.

• In Canada, electronic signatures have the same legal status as handwritten signatures. Canada has adopted the Uniform Electronic Commerce Act to ensure a uniform approach.
• However, Quebec has a different but similar statute that gives electronic documents and signatures the same legal effect as paper copies.

The United Kingdom

In the United Kingdom, the Electronic Communications Act 2000 legalized the use of electronic signatures.

In summary, the U.K. has uniform legislation and guidelines, which generally allow using signatures and records.

European Union

In most E.U. countries, including Germany, the law has recognized electronic signatures since the early 21st century. With the adoption of the eIDAS law in 2016, the acceptance and procedures for electronic signatures have standardized throughout Europe. These types of signatures are approved for business use and are admissible in court.

European legislation states that handwritten signatures are not necessary for documents and contracts to be reliable. All companies in the E.U. must follow standard rules on using eSignatures.

Brazil

Medida Provisoria 2.200-2 authorizes the use of electronic signatures in Brazil. In effect, since 2001, this electronic signature has been used by businesses and is also accepted by the courts.

In Brazil, handwritten signatures are not necessary to prove the validity of contracts. People can use electronic software solutions to record contracts and provide the necessary documents as legal evidence.

Mexico

Unlike the countries mentioned above, Mexico does not have specific legislation on retaining digital signature records. Are electronic signatures legal in Mexico?

Yes, and people are increasingly using them. Two laws are generally applicable: The Federal Civil Code and the Federal Commercial Code.

Electronic signatures generally have the same legal effect as handwritten signatures. As in many countries around the world, these signatures are legally equivalent to handwritten signatures and people consider them as admissible as forensic evidence.

Author Bio

Sally Hickman Green is a 30-year-old who enjoys blogging for electronic signature, internet marketing, Customized Contracts, and social media marketing. She is inspiring and generous in blogging. She has a post-graduate degree in Computer science.