What role does the electronic signature play in your trading relationships?

Faster, more efficient and more innovative: the world is digitizing at a rapid pace, including within the business world. Think online meetings, digital accounting or paper archives giving way to accessible cloud storage. This digital evolution also applies to contract law, where agreements are increasingly being signed virtually. Is such an electronic signature legally valid? Does it have the same legal value as a physical, handwritten signature? And is the electronic signature also recognized internationally? Stefanie Claeys, a lawyer specializing in contract law, explains the legal framework in detail.

1. 1    The simple electronic signature

The simple electronic signature is the simplest form of signature. Consider a scanned, hand-signed document or checking a digital box on a screen. “Although this method of signing is smoothly established, it does not provide far-reaching guarantees”, Stefanie explains. “For example, the simple electronic signature is not a conclusive method for determining whether the signer is actually who he or she claims to be, nor for guaranteeing the integrity of the document.” Thus, while principally valid, this signature cannot be equated with a handwritten signature.

For everyday actions, such as accepting a package or signing a standard letter, the simple electronic signature is sufficient. For legally binding documents, on the other hand, it is less suitable. Moreover, this signature is not automatically accepted internationally.

2. 2    The advanced electronic signature

Where the simple electronic signature offers rather little security, the advanced electronic signature builds in more guarantees. This method of signing is subject to four legal requirements:

• The signature must be uniquely linked to the signer.
• In doing so, it must be possible to identify the signer.
• The signature must be placed through a mechanism that ensures that the signer is the only one who can sign the document.
• Any subsequent changes to the signed document must be traceable.
  
   

Examples of the advanced electronic signature include the biometric signature or a signature via text message. “This signature provides more security about both the signer and the integrity of the document, but cannot be equated with a physical signature”, Stefanie explains. Like the simple electronic signature, this method of electronic signing is not automatically accepted internationally.

3. 3    The qualified electronic signature
 

The qualified electronic signature goes one step further and combines all the requirements of the advanced electronic signature with a qualified certificate, such as signing via Itsme, e-ID or government-issued tokens.

This is the most watertight version of an electronic signature, Stefanie confirms. “Thanks to this certificate, the qualified electronic signature is equivalent to the handwritten version. In addition, it offers the most legal certainty in terms of the authenticity of the signature and the integrity of the document. Finally, this signature is recognized throughout the European Union, provided it is based on a signature certificate issued in a Member State.”

The table below conveniently summarizes the legal validity and consequences of the three types of electronic signatures: