Digital Signatures: Legal Validity and Common Pitfalls

More businesses are going paperless every year. Contracts are signed via email, messaging apps, and specialized platforms. But does a digital signature actually hold up in court? Let us break it down.

Types of Electronic Signatures

Most legal frameworks recognize three levels of electronic signatures:

Simple Electronic Signature (SES) — a login/password combination, SMS code, or email confirmation. The most common type. Suitable for internal documents and low-value agreements, provided both parties have agreed to use it.

Advanced Electronic Signature (AES) — created using cryptographic tools. It identifies the signer and detects any changes made after signing. Commonly used on trading platforms and in corporate document management.

Qualified Electronic Signature (QES) — issued by a government-accredited certification authority. The full legal equivalent of a handwritten signature. Required for government interactions, tax reporting, and public tenders.

When Is a Digital Signature Legally Binding?

The key rule: an electronic signature is legally valid when both parties have agreed in advance on how it will be used. In practice, this means:

• The main contract includes a clause recognizing electronic document exchange
• The method of identifying each party is defined (email, phone number, user account)
• The process for exchanging documents is described (platform, format, deadlines)
• The exact moment a document is considered signed is established

Common Mistakes

No electronic document exchange agreement. Without a clause in the contract recognizing digital signatures, the other party can challenge any electronically signed document.

Weak identification. Signing through a generic corporate email (info@company.com) is easy to dispute — there is no way to prove who actually sent the message.

No audit trail. The signing platform must maintain a complete audit log: who signed, when, and from which IP address.

Ignoring legal requirements. Certain types of contracts (real estate, notarized transactions) either do not allow electronic signatures or require a qualified signature only.

How to Protect Yourself

Include an electronic document exchange clause in every contract. Specify exact email addresses and signing methods. Use platforms with audit trails. For high-value deals, use only qualified signatures.

Check your contracts with EasyContract — the system will automatically detect whether your document includes an electronic signing clause and how robust it is.