Electronic signature - easy, fast, legally binding, and worry-free
A simple electronic signature is often perceived as less reliable than a handwritten signature on paper because it is not easy to prove who created it. However, recent court decisions have confirmed that it is fully valid for most common legal transactions unless the law requires an officially verified signature.
What types of electronic signatures exist?
EU and Czech legislation distinguishes four categories of electronic signatures:
- A qualified electronic signature has the highest level of security and uses a certificate issued by a trusted authority.
- An electronic signature guaranteed based on a qualified certificate is more secure than a regular guaranteed signature, but its regulation is not as strict as for a qualified one.
- A guaranteed electronic signature not based on a qualified certificate allows to verify the identity of the signatory but is not as trustworthy as the previous two options.
- Simple electronic signatures include, e.g, a name in an email, a scanned signature, a click on a consent button, a signature made on a tablet, or a signature created in an app.
The first two categories are referred to as recognised electronic signatures and are the standard for communication with authorities. If you are addressing a document to a public authority, you must use one of these.
Signing in practice
In everyday life, a simple electronic signature is used all the time, e.g., when you sign a contract via DocuSign, send an email stating your name, or click to consent to terms of service. There has long been a debate about whether this type of signature is equivalent to a handwritten signature on paper and whether it can be considered legally binding.
The courts have now confirmed that for ordinary private-law acts, it is fully sufficient if it can be proven who signed the document and that they did so knowingly. Thus, if doubts arise, a signature’s authenticity can be supported by further evidence, e.g., by the subsequent conduct of the parties in the performance of the contract.
After all, even a handwritten signature on paper does not provide 100 percent assurance of the identity of the signatory. A signature is only evidence based on which it can be determined with a certain degree of probability who made it. We should therefore apply the same approach to electronic signatures - there is no reason why they should automatically be considered less trustworthy.
Concerns about simple electronic signatures are often unnecessary. If you are signing a document electronically and a certified signature is not required by law, you do not have to worry about your signature not being valid. The only important thing is being able to prove who signed the document and that they did so knowingly. The courts have confirmed this practice, and more and more companies and individuals commonly use it.