Digital Signature’s legality – Is a digital signature legally binding?

Today, most countries welcome the use of electronic signatures (eSignatures) as a way to move beyond a paper-based environment. New Zealand, Australia (all states), the United States, Canada, South Africa, the United Kingdom, the European Union, and many others have established laws regarding the signing of documents in electronic format.

While people use various ways to sign electronically, ONLY Digital Signature technology that uses industry-based standards of cryptography can satisfy these laws. The Secured Signing digital signatures online solution complies with and exceeds these requirements!

What is Public Key Infrastructure (PKI) technology?

Secured Signing web service uses Digital Signatures PKI technology for digitally signing documents.

Public Key Infrastructure (PKI) technology has been proven to be the ONLY technology available today that ensures non-forgeable signatures.

In a PKI system, you will get as a user, two keys: a public key and a private key. These keys are used for encrypting and decrypting information, digitally signing electronic information and verifying the authenticity of their owner. While the public key is distributed widely, the corresponding private key is held and encrypted in Secured Signing hardware (HSM) device and only the private key’s owner able to access and use it.

The EU Directive 1999/93/EC for Digital Signatures recognised and defined a stronger type of electronic signature, the Advanced Electronic Signature. Only Public Key Infrastructure (PKI) digital signatures meet the requirements for such signatures.

 

Validity Summary

Law requirements

Legal requirement for a signature is met by means of an electronic signature if the signature:

  • Adequately indentifies the signatory;
  • Adequately indicates the signatory’s approval of the information to which the signature relates; and (Intent)
  • Is as reliable as is appropriate given the circumstances.

An electronic signature is sufficiently reliable if:

  • The means of creating the signature is linked to the person signing and no-one else, and
  • The means of creating the signature was under the control of the person signing and no-one else, and
  • Any changes to the signature are detectable, and
  • Any changes to the documents are detectable (data integrity).

Secured Signing’s Legal Compliance

How Secured Signing Meets Global Electronic Signature Laws

Secured Signing’s digital signature service is engineered to exceed the rigorous requirements of global electronic transaction laws. Every document signed through our platform achieves legal validity and non-repudiation through the following four pillars:

1. Identifying the Signatory

Secured Signing issues a unique digital certificate for every User, Invitee, and Witness. During registration or the signing session, we capture essential metadata—including verified email addresses, IP addresses, timestamps, and physical locations—to ensure the signatory is identified at the moment of execution. This identity is cryptographically bound to the document and can be instantly verified using our Free Online Verification Service or standard PDF readers.

2. Signature is linked to the signatory

Unlike simple “electronic” signatures (which are often just an image of a squiggle), our Personalized PKI technology ensures every signature is uniquely linked to the specific signatory. By utilizing a private cryptographic key, we eliminate the risk of signature duplication or forgery.

3. Creating the signature is under sole control of the signatory

The signing process remains under the exclusive control of the intended party. Documents are delivered via secure, private links, and signatories must authenticate their identity, via email ownership, SMS two-factor authentication (2FA), or secure passwords; before they are granted access to execute the document.

4. Document Integrity (Tamper-Evidence)

Secured Signing’s trusted digital signature service is based on PKI technology that is considered to be the ONLY technology that ensures non-forgeable signatures. Once a signature is applied, the document is “sealed.” If even a single character or pixel is altered after the fact, the digital certificate will immediately show as Invalid, providing an unbreakable audit trail of data integrity.

Enhanced Security Features

Secured Signing provides a comprehensive suite of security layers:

  • Bank-Grade Encryption: All documents are protected by high-level SSL/TLS encryption during transit and at rest.

  • Cryptographic Timestamps: Each signature includes a secure local timestamp to prove exactly when the intent was captured.

  • Legal Intent: Clear “Reason for Signing” fields establish the signatory’s purpose and consent.

  • Comprehensive Audit Logs: A detailed “Full Signing Process” report tracks every action, from the initial invitation to the final execution.

  • Secure Document Residency: Robust storage protocols ensure your sensitive data remains protected and accessible only to authorized parties.

Legally binding service

Digital signatures that use Personalised X509 PKI Digital Signature technology sustain signer authenticity, accountability, data integrity and non-repudiation of documents and transactions.

In 1999, the EU passed the “EU Directive for Electronic Signatures” and on June 30, 2000, President Clinton signed into law the Electronic Signatures in Global and National Commerce Act (“ESIGN”), which made signed electronic contracts and documents as legally binding as a paper-based contract.

In recent years, most countries worldwide have adopted legislation and regulations that recognise the legality of a digital signature and deem it to be a binding signature. Many of them have an Electronic Transactions Act in place.

These legislations create a uniform standard for all electronic transactions and encourage the use of electronic signatures, giving electronic signatures the same legal effect as pen-and-paper signatures.

"We are confident that the systems used by Secured Signing ensure that the electronic signatures produced meet the New Zealand legal requirements for a signature. In fact, the security and logging facility, in our view, provides better authenticity than many of the methods by which documents are now commonly signed and exchanged (e.g. email and facsimile). So, unless there are specific laws dictating that a document can only be signed in a particular way, any form of contract can be signed using the Secured Signing System. "
Rick Shera, Partner at
LOWNDES JORDAN, Barristers & Solicitors, Auckland, New Zealand

Secured Signing maintains strict adherence to the ESIGN Act, UETA, and various Electronic Transactions Acts across global jurisdictions.

Below is a comprehensive list of the international legislation we support

  • Australian Capital Territory -ELECTRONIC TRANSACTIONS ACT 2001
  • Australia, New SouthWales (NSW) – ELECTRONIC TRANSACTIONS ACT 2000
  • Australia, Northern Territory (NT) – ELECTRONIC TRANSACTIONS ACT 2000
  • Australia, Queensland (QLD) – ELECTRONIC TRANSACTIONS (QUEENSLAND) ACT 2001
  • Australia, Victoria (VIC) – ELECTRONIC TRANSACTIONS (VICTORIA) ACT 2000
  • Australia, South Australia (SA) – ELECTRONIC TRANSACTIONS ACT 2000
  • Australia, Western Australia (WA) – ELECTRONIC TRANSACTIONS ACT 2003
  • Australia, Tasmania – ELECTRONIC TRANSACTIONS ACT 2000
  • Canada – Uniform Electronic Commerce Act (UECA)
  • China – Electronic Signature Law of the People’s Republic of China
  • Europe – eIDAS
  • New Zealand – Contract and Commercial Law Act 2017
  • South Africa – Electronic Communications and Transactions Act, 2002
  • UK – Electronic Communications Act 2000 (c.7)
  • U.S. – Electronic Signature in Global and National Commerce Act (ESIGN)
  • U.S. – Uniform Electronic Transactions Act (UETA)- adopted by 48 states

Nothing on this page constitutes legal advice.