Did you know that the Government of Canada has had laws in place governing the use of e-signatures since the mid-1990s? Yes, really! But the use of e-signatures can sometimes still be confusing, and users need to understand that not all e-signature platforms are the same or provide the true, legally binding signatures. In this article, we’ll talk about the rules and recommendations for using e-signatures in Canada when you need to sign an important document like a contract. 

Just remember that the following information in no way constitutes legal advice, and you should always consult with counsel for all your legal and contractual questions.

What signatures really do

Fundamentally, signatures serve three purposes:

As defined by the Government of Canada, an e-signature can be almost any type of electronic representation that can be linked or attached to an electronic document or transaction, such as:

• Using a username and password to log in to a specific application to complete an action
• Using a stylus on a screen to electronically capture a handwritten signature 
• Typing a name at the end of an email or into a name field
• Clicking on an acknowledgment button to capture intent
• Scanning a handwritten signature on a paper document
• Recording an audible answer to a question

We’re willing to bet you didn’t know “electronic signatures” meant so many different things!

Specific e-signature requirements

Now that we know what an e-signature can be, let’s discuss a few other requirements.

Signatures establish identity, intent, and agreement. E-signatures are no different, and must have mechanisms in place to authenticate signers, demonstrate their intent to use e-signatures to sign, and a way to ensure they have read and agree to the contents.

According to Part 2 of the Personal Information Protection and Electronic Documents Act (PIPEDA), the main Canadian law governing e-signatures, secure electronic signatures, or signatures that use asymmetric cryptography, are also needed to sign the following:

• Documents used as evidence or proof
• Seals
• Original documents
• Statements made under oath
• Statements declaring truth
• Witnessed signatures

In other words, if you want your e-signature to stand up in court, it must be a secure electronic signature.

Most PDF signatures aren’t secure

Not all e-signatures are the same. A lot of PDF software comes with the ability to add a signature, but that doesn’t mean it’s a true, legally binding, secure signature that will protect you or your company in the event of a dispute.

To really be protected, you need the peace of mind knowing that your e-signature solution meets all the requirements for secure electronic signatures.