E-Signatures – Can Technology Be Trusted?

By Nicola Lindop

Principal Associate

T: 01279 750664
E: nlindop@nockolds.co.uk

Anybody involved in a commercial transaction, whether as a business or individual, needs to be able to trust the means used to undertake that activity. In a world where commerce is increasingly moving online, such trust can be enhanced by the use of e-signatures. 

What Are E-Signatures?

E-signatures come in many different forms, including:

  • Typewritten or scanned signatures; 
  • Electronic representations of handwritten signatures (for example, using a stylus to sign a touchscreen);
  • Clicking a tick box to make a declaration; 
  • Providing a digital representation of a unique characteristic, such as a fingerprint or retina scan; and
  • Using public key cryptography, whereby a party can use a private software key to encrypt a document. The counterparty can decrypt the information using a public software key in order to confirm the authenticity of the signature.  

How Does the Law Deal with E-Signatures?

E-signatures can be used to validly execute legal documents. They can be divided into three groups:

Simple – These include scanned signatures and tick boxes; 

Advanced – Signatures which are: 

  • Uniquely linked to the signatory;
  • Capable of identifying the signatory;
  • Created using e-signature creation data under the signatory’s sole control; and
  • Linked to data within the signature which can detect any changes made. 

Qualified – Signatures which meet the ’advanced’ criteria and are created by a qualified device, based on a qualified certificate issued by a trust service provider. 

Which Type of Signature Should be Used? 

Higher value transactions will usually require a greater level of security and a ’qualified’ signature may be most appropriate. Using a qualified trust service provider can also offer other advantages, such as electronic time stamping, electronic seals and website authentication.

However, using a ’simple’ or ’advanced’ signature remains a valid method of execution and can offer a high degree of flexibility in comparison with a traditional ’wet ink’ signature. 

Care should always be taken when executing any legal document, but advances in recent years mean that technology can indeed now be trusted.