Since the pandemic, digital signatures have become an integral part of our daily lives. Documents no longer need to be printed, signed, and sent by mail – many now use electronic alternatives instead. The advantages are clear: it’s faster, more convenient, and eliminates the hassle of scheduling appointments just for a signature.
However, not all digital signatures are created equal. Depending on the type of document or contract, it’s crucial to determine which type of electronic signature is legally required. In this blog post, I’ll explain the basics and the differences between various types of signatures to help you navigate this topic without getting overwhelmed.
The Three Types of Digital Signatures
- Simple Electronic Signature: This is the most basic type: a scanned image of your handwritten signature or a digital representation, often used in PDF documents. It’s quick to create but also easy to forge.
- Advanced Electronic Signature: This type employs cryptographic technology. Advanced electronic signatures are based on a certificate and technical security mechanisms, such as tokens. However, the signer does not need to prove they performed the signature themselves – the identification step is missing.
- Qualified Electronic Signature: The most secure and legally binding option. Like the advanced electronic signature, it is cryptographically protected, but the signer’s identity is verified through an official process (e.g., an online ID verification) before using the signature service.
What Do These Differences Mean in Practice?
For many contracts, a simple electronic signature is sufficient, particularly for documents that do not require a written form, such as purchase agreements or open-ended lease contracts. However, you should be aware that this type of signature is relatively easy to replicate and thus less legally secure.
With the advanced electronic signature, forgery is significantly more difficult, but proving beyond doubt that you personally performed the signature can be challenging – since there is no identification process involved.
The qualified electronic signature, on the other hand, offers the highest level of security: it is almost impossible to forge and can be clearly attributed to you. This makes it ideal for contracts that require stricter forms, such as employment contracts, fixed-term lease agreements, or notarized documents.
When Should You Use Which Signature?
The choice of the appropriate signature depends on the type of document and the legal requirements:
- Simple Electronic Signature: Suitable for simple documents and contracts that do not require a written form.
- Advanced Electronic Signature: A good choice when a higher level of security is needed but no identity verification is required.
- Qualified Electronic Signature: Essential for legally binding documents where your identity must be verified.
If your contracting partner cannot provide a qualified electronic signature, consider using a handwritten signature for sensitive documents.
Conclusion
I hope this overview has helped you better understand the different types of digital signatures. For every contract, think about the requirements for the signature and choose accordingly. For simple agreements, an electronic signature is often sufficient. However, for legally sensitive contracts, it may be wise to opt for a qualified electronic signature or even a classic handwritten signature.
Checklist:
- Familiarize yourself with the different types of digital signatures.
- Clarify whether the contract requires a written form and which type of signature is necessary.
- Use simple electronic signatures only for documents with low legal requirements.
- Opt for qualified signatures for legally binding contracts that require identity verification, or consider a handwritten signature.