successfully implement e-signatures in age of e-commerce – Commentary

Driving e-commerce with e-signatures
Varieties of e-signatures
Successfully implementing e-signatures


One issue that has contributed to the worldwide improve of e-commerce – and improved the industrial panorama in Cyprus as an EU member state particularly – is the introduction of e-signatures as a method of authenticating an individual’s id and coming into right into a contract. Following the implementation of the EU Regulation on Digital Identification and Belief Companies for Digital Transactions within the Inner Market (the Regulation)(1) and the enactment of Legislation 55(I)/2018 (the “E-signatures Legislation”) as amended, Cyprus can now supply fast and environment friendly completion of transactions, with out compromising the knowledge that’s required by the courts when a transaction is disputed.

The Regulation has established a complete authorized framework that covers:

  • e-signatures;
  • digital seals;
  • digital paperwork; and
  • regulates the broader digital communications inside EU member states.

In accordance with the Adobe Digital Index, which included international numbers in its April 2021 report, it’s predicted that international e-commerce gross sales will attain $4.2 trillion in 2021, with US customers accounting for shut to at least one quarter of that spending. Forbes reported that international e-commerce reached $876 billion within the first quarter of 2021, which represents a 38% year-over-year progress. As 2022 approaches, it’s evident that the expansion and want for e-commerce could also be one of many few constructive outcomes of the covid-19 pandemic.

Driving e-commerce with e-signatures

Facilitating e-commerce is dependent upon on-line id authentication. The E-signatures Legislation and the Regulation present the impetus for Cyprus-based e-commerce to develop and develop. On the identical time, these developments help within the progress of the skilled companies sector. In accordance with article 25 of the Regulation, an e-signature shall not be denied authorized impact and admissibility as proof in authorized proceedings solely on the grounds that it was made in digital kind.

Though the brand new laws has but to be examined within the Cypriot courts, it’s clear that the existence of at the very least one type of e-signature (equal to a handwritten signature) offers an added degree of certainty in transactions which can be solely closed by e-signatures. Additional, e-signatures usually get rid of signing formalities just like these supplied by the main case legislation from the UK, such because the signing protocol that grew to become broadly utilized by the case R (on the appliance of Mercury Tax Group and one other) v HMRC.(2) Within the Mercury case, wet-ink signatures have been crucial earlier than they could possibly be electronically transmitted and accepted, if the signing protocol was adopted as authorized.

Varieties of e-signatures

The Regulation offers for 3 varieties of recognised e-signatures:

  • easy digital signatures – information in digital kind that’s hooked up to, or logically related to, different digital information and that’s utilized by the signatory;
  • superior digital signatures – that are:
    • uniquely linked to the signatory;
    • able to figuring out the signatory;
    • created by implies that the signatory can keep below their sole management; and
    • linked to the associated information in such a manner that any subsequent change of the info is detectable; and
  • certified digital signature – which has probably the most vital judicial worth as it’s licensed by a professional belief service supplier and can be utilized for submissions with public authorities. It’s the solely signature with the identical judicial worth as a wet-ink signature.

Successfully implementing e-signatures

The existence of the aforementioned legislative framework permits for the smoother facilitation of enterprise and the expansion of e-commerce. In knowledgeable companies framework and, extra particularly, for the closing of authorized transactions based mostly on solely digital signatures, the beneath elements needs to be thought of.

Is a legally recognised e-signature getting used?
This may be established by reference to the e-signature definitions within the Regulation and the E-Signature Legislation.

Is there the intention that the e-signature is binding?
A two-factor authentication will enable the signatory to adequately expresses their intention to be sure by the e-signature that they’re offering. That is significantly related the place a easy e-signature is getting used.

Did the right particular person signal the doc in query?
This query goes past the identification of the particular person signing. It requires guaranteeing the particular person has precise authority to signal.

Are there any restrictions within the constitutional paperwork of the entity sure by the signatory’s e-signature?
There’s a requirement for the correct authorized overview of constitutional paperwork and any efficient resolutions which will have an effect on a person’s means to enter right into a contract.

Is there a selected type of signing that have to be adopted to ensure that the contract to be recognised by the related authorities?
Sure authorities might require a doc with a moist ink signature, if they’re unable to electronically file paperwork. For instance, filings on the district lands workplaces at present require agreements to be signed in wet-ink.

For additional data on this subject please contact Stella Koukounis or Chara Paraskeva at Solsidus Legislation by phone (+357 22 007700) or e mail ([email protected] or [email protected]). The Solsidus Legislation web site will be accessed at


(1) 910/2014.

(2) [2008] EWHC 2721.

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