Use Cases for eSignatures
Use cases where an SES is typically appropriate include:
- Low risk Agreements: Simple electronic signatures can be used to sign low-risk agreements, provided that both parties have consented to the use of electronic signatures and the signature is attributable to the signatory.
- Non-disclosure agreements: non-disclosure agreements can also be signed using simple electronic signatures, as long as the parties involved have agreed to the use of electronic signatures.
- Service contracts: Simple electronic signatures may be valid for service contracts, such as consulting agreements or service level agreements, provided that both parties have agreed to use electronic signatures and the signature is attributable to the signatory.
Use Cases for Qualified Signatures
Use cases where AES/QES is typically appropriate include:
- Powers of attorney: An advanced electronic signature may be valid for powers of attorney, allowing someone to act on behalf of the signer, as long as the signature is uniquely linked to the signer and the signature is attributable to the signatory.
- Sales contracts: Simple electronic signatures may be valid for sales contracts, such as purchase orders or sales agreements, provided that the parties have agreed to use electronic signatures and the signature is attributable to the signatory.
- Invoices: Advanced electronic signatures can be used to sign invoices, provided that the signature is attributable to the signatory and the invoice is issued in compliance with the applicable regulations.
- Banking and financial documents: Advanced electronic signatures may be valid for banking and financial documents, such as loan agreements and bank guarantees, as long as the signature is attributable to the signatory and the other legal requirements are met.
- Government and official documents: Advanced electronic signatures can be used for signing government and official documents, such as tax returns and customs declarations, as long as the signature is attributable to the signatory and the other legal requirements are met.
Use Cases that are not appropriate for Electronic Signatures
Use cases that are specifically barred from digital or electronic processes or that include explicit requirements, such as handwritten (eg. wet ink) signatures or formal notarial process that are not usually compatible with electronic signatures or digital transaction management.
- Notarization – real property title deed transfer
- Notarization – granting a power of attorney
- Notarization – signing the Articles of Association of a company with limited liability and any amendments thereof
General Definitions
Simple Electronic Signature (SES)
A Simple Electronic Signature (SES) refers to any electronic data that is logically associated with other electronic data and used by a person to sign. This can include:
- Typing a name at the end of an email,
- Clicking an “I accept” button,
- Pasting a scanned image of a signature, or
- Using a stylus or finger to draw a signature on a touchscreen.
While SES can indicate intent to sign, it lacks advanced identity verification, integrity protection, or security features, making it the least secure type of electronic signature. It is legally valid in many jurisdictions but may not carry strong evidentiary weight without additional context or proof.
Advanced Electronic Signature (AES)
An Advanced Electronic Signature (AES) is a more secure form of electronic signature that must meet the following criteria:
- it is uniquely linked to the signatory
- it is capable of identifying the signatory
- it is created using means that are under the sole control of the signatory, and
- it is linked to the signed data in such a way that any subsequent change in the data is detectable.
AES provides enhanced legal reliability compared to SES and is often supported by multi-factor authentication, encryption, and audit trails.
Qualified Electronic Signature (QES)
A Qualified Electronic Signature (QES) is a type of Advanced Electronic Signature that additionally:
- is created using a qualified signature creation device (such as a secure token or smart card); and
- is backed by a qualified digital certificate issued by a recognized or accredited trust service provider.
QES provides the highest level of trust and legal assurance, and in many jurisdictions (like the EU under eIDAS, India IT Act, etc), it holds the same legal status as a handwritten signature.
Digital Signature
A Digital Signature is a specific technological implementation of an electronic signature that uses asymmetric cryptography. It allows a verifier to:
- confirm that the signature was created using the private key corresponding to the signer’s public key; and
- ensure that the signed message or document has not been altered after signing.
Digital signatures are the underlying cryptographic mechanism used in both AES and QES. They offer strong security guarantees such as authenticity, integrity, and non-repudiation and are often implemented through Public Key Infrastructure (PKI) systems.
External Resources
DISCLAIMER
This information is intended to help you understand the legal framework of electronic signatures. However, eMudhra cannot provide legal advice. The law of electronic signatures is constantly evolving. This guide is not intended as a legal advice and should not serve as a substitute for professional legal advice. You should consult an attorney regarding any specific legal concerns. eMudhra, and all associates including agents, officers, employees or affiliates, are not liable for any direct, indirect, incidental, special, exemplary or consequential damages.