Is a digital signature legally binding?

Introduction: The Global Acceptance of Digital Signatures

In today’s fast-paced, paperless world, the transition to electronic signatures is widely accepted and encouraged by governments globally. The question remains: Is a digital signature legally binding?

The answer is a resounding yes, but with a critical caveat: not all electronic signing methods meet the stringent legal requirements. Countries including New Zealand, Australia (all states), the United States, Canada, South Africa, the United Kingdom, and the European Union have established clear laws governing the use of electronic documents and signatures.

Digital Signature vs. Electronic Signature

While “electronic signature” is a broad term for signing a document digitally, ONLY Digital Signature technology that utilizes industry-based standards of cryptography is generally recognized as satisfying these stringent legal requirements for authenticity and integrity.

Secured Signing provides a trusted digital signatures online service that complies with and often exceeds these global legal standards.

which is digital signature

Key Legal Requirements for a Binding Electronic Signature

For an electronic signature to be considered legally binding under most international laws (like the U.S. ESIGN Act and UETA, and various Electronic Transactions Acts), it must satisfy three core criteria:

  1. Identification: The signature must adequately identify the signatory (who is signing).

  2. Intent: It must adequately indicate the signatory’s approval of the information (the signer’s intent to be bound).

  3. Reliability & Integrity: The means of creating the signature must be as reliable as is appropriate given the circumstances.

Defining “Sufficiently Reliable”

 

An electronic signature is typically deemed sufficiently reliable if:

  • The means of creating the signature is uniquely linked to the person signing and no one else.

  • The means of creating the signature was under the sole control of the person signing.

  • Any changes to the signature are detectable.

  • Any changes to the document are detectable (ensuring data integrity).