Think it - e-Signature: A Step to Swift Legal Recognition

Internet and cloud computing has spawned an entirely new work environment where you don’t have to be stationed at a permanent place. Ubiquitous internet has made it possible to work from anywhere. Work from anywhere phenomenon has necessitated many ancillary things like cloud computing, e-payments, online shopping. Another requirement is the facility of e-Signature.

When you are working as a nomad or travelling to distant places frequently then sometimes you need to enter into contract with customers or suppliers or online employers that need your signatures. e-Signature facility is handy in these cases. You don’t have to be present at the place where the contract papers are to sign it.

An e-signature or electronic signature is an efficient and legal way to get electronic documents signed quickly. Secure and trusted around the world, e-signatures can replace a handwritten signature in many processes. Speed up every process by allowing recipients to e-sign documents. Using e-signatures helps you save money.

e-Signatures are signatures done with your stylus on a pdf document.These are not secure signatures. Compared to this are Digital Signatures which are secured by digital certificates issued by third-party providers that help you comply with regulations around the world.

There are many Digital Signatures providers e.g. Adobe Sign, DocuSign, HelloSign. They charge a fee and provide you with a Digital ID. It is similar to a passport in electronic form, a digital identity (or digital ID) provides strong evidence that you are who you say you are when e-signing a document. Each digital ID is backed by a digital certificate issued by a trusted third party, such as a bank or government, after thoroughly verifying your identity. Using a digital ID to authenticate your identity and apply a digital signature provides a higher level of assurance that you agreed to the terms listed and have authorised your signature on a specific document.

Numbers of countries have adopted e-Signatures e.g. USA, European Union, UK, Australia, New Zealand, India. There are three types of e-Signatures Laws around the world.  These are

1. Minimalist - These laws allow eSignatures to be enforceable in virtually every case, with very few exceptions. Minimalist laws provide the greatest level of security for those involved and can be applied more broadly than other types of eSignature laws. These laws tend to be technology-neutral.

2. Perspective - These are the strictest type of eSignature laws — and the most difficult to adhere to if you don’t use the right technology. That’s because there are specific rules about how you can create and sign agreements online.

3. Two-Tier - A combination of both minimalist and prescriptive laws, two-tiered laws can be tricky to navigate. Like minimalist laws, two-tier eSignature laws allow and accept all forms of electronic signatures for private agreements (as long as both parties agree). However, like prescriptive laws, these laws also regulate what processes and technology must be used for specific types of contracts.

In Pakistan, we have Electronic Transactions Ordinance 2002 that provides legal cover to e-signatures. We also have an e-signature provider named Paksign. Section 3 of the said Ordinance says “3. Legal recognition of electronic forms.—No document, record, information, communication or transaction shall be denied legal recognition, admissibility, effect, validity, proof or enforceability on the ground that it is in electronic form and has not been attested by any witness.” However, application to certain laws is barred. Under section 31 of the said ordinance it is not applicable to certain contracts and agreements under certain laws such as a trust deed, a negotiable instrument, a will and a sales contract. 

This is somewhat restrictive and negates the law itself. When in section 3 a legal cover has been provided to all documents, records and transactions in electronic form then this section was not needed. There is even more need for this law as everything is moving on to the cloud and Work From Anywhere is no longer a niche, digital money is at our doorsteps, sharing of information in electronic form is the norm and here we are limiting ourselves.

Law is there, let’s implement it in true spirit and also let us enjoy the freedom of working from anywhere.