Are Simple Electronic Signatures Legally Valid?

Simple Electronic Signatures (SES) are the most basic form of electronic signatures, offering ease and convenience but with minimal security.

Welcome back to our exploration of the eSignature landscape! Previously, we discussed Qualified Electronic Signatures (QES) and Advanced Electronic Signatures (AdES) with Margus Pala, co-founder of eID Easy. This time, Margus joins us to unpack SES: what they are, how they differ from other types, whether they might be right for you, and the most important question – are they legally valid?

Firstly, What Is a Simple Electronic Signature?

At its core, a Simple Electronic Signature is any form of digital consent or agreement that associates a person with a document or message. Margus explained it this way:

“An electronic signature means data in electronic form, which is attached to or logically associated with other data in electronic form, and is used by the signatory to sign.”

In simpler terms: Imagine you send a text to a friend saying, 

“Do you agree to buy my bike for $10?” 

They reply, “Yes.” 

That’s a Simple Electronic Signature!

---

This broad definition includes many forms of consent: 

• Clicking “I Agree” on a website, 
• typing your name into a document, or even 
• recording your voice saying “I approve.”

How Does SES Compare to AdES and QES?

Unlike Advanced Electronic Signatures (AdES) or Qualified Electronic Signatures (QES), SES doesn’t include any verification of the signer’s identity or protection against tampering. This means SES is easy to use but lacks the security required for many legal or high-stakes transactions

Are Simple Electronic Signatures Legally Valid?

Yes, Simple Electronic Signatures are legally valid in many jurisdictions, but there’s a catch:

• Legal Validity: Courts are required to accept SES
  
• Proving Validity: If challenged, you’ll need evidence to prove the signer’s intent and identity.

Margus highlighted some risks:

“With SES, it’s very easy to deny signing. For example, someone could claim they forwarded the email to a friend who clicked the agreement. Without additional evidence, proving validity becomes a challenge.”

When Should You Use Simple Electronic Signatures?

SES might be a good choice for:

• Low-Stakes Agreements: Casual or non-binding agreements where neither party is overly concerned about enforcement.
  
• Quick and Informal Processes: Simple forms, registrations, or acknowledgments where convenience is key.

However, Margus had a clever rule of thumb for eSignatures:

“If you want to get out of a contract, use SES. If you want to make sure someone else can’t get out, ask them to sign with AdES or QES.”

This lighthearted but practical advice highlights the risks and benefits of SES. While it’s legally valid, its lack of identity verification and security measures means it can be easily disputed.

For critical transactions, Margus strongly recommends upgrading:

“If you care about your signature holding up in court, always opt for AdES or QES. The experience is nearly as simple but far more secure.”

By understanding its limitations, you can make smarter decisions about when—and when not—to rely on Simple Electronic Signatures.

Best Practices for Simple Electronic Signatures

If you decide to use SES, here are some tips to minimize risks:

• Collect Evidence: Include timestamps, IP addresses, or audit trails to support validity if needed.
  
• Avoid High-Value Agreements: For loans, contracts, or anything legally binding, upgrade to AdES or QES.
  
• Stay Informed: Understand the limitations of SES to avoid surprises in disputes.

Why Businesses Should Avoid Simple Electronic Signatures

Many businesses opt for SES because they believe it’s simpler or more affordable. However, Margus emphasized that tools like eID Easy eliminate those barriers:

“While we do support Simple Electronic Signatures, with eID Easy, businesses can also integrate Advanced and Qualified signatures effortlessly. It’s as simple as installing a plugin, and it works globally.“

Our API is packed with features that simplify eSignature workflows while ensuring security and compliance:

1. Hashing
   Our API generates secure hashes for every document, ensuring its integrity. This guarantees that the document’s content remains unchanged after signing, providing assurance to both the signer and the recipient.
   
   
2. Time Stamping
   Trusted timestamps are added to documents, marking the exact moment of signing. These timestamps are digitally verified by a trusted authority, ensuring legal validity and providing a verifiable signing date.
   
   
3. Advanced and Qualified Signatures (AdES & QES)
   Besides Simple Electronic Signatures, we support both Advanced Electronic Signatures (AdES) for quick, flexible agreements and Qualified Electronic Signatures (QES) for legally binding, high-security contracts. This flexibility accommodates a range of use cases across different industries and jurisdictions.
   
   
4. Cross-Provider Access
   Our API connects you to multiple QTSPs and electronic identity providers with a single integration. This eliminates the need for multiple integrations, simplifies provider selection, and offers global coverage for all your digital signing needs.
   
   
5. Multi-Level Signing
   With our API, you can combine different types of eSignatures, including both Advanced and Qualified Electronic Signatures, in a single document. This feature is ideal for complex workflows that require different levels of authentication for multiple parties.
   
   
6. Batch (Bulk) Signing
   Depending on the QTSP, we can enable batch signing where multiple documents are signed with one click.

But here’s the kicker: If a business relies on SES and a contract dispute arises, it could end up costing much more than just using a more secure method from the start. Margus adds:

“In many cases, the cost of a dispute or lost contract far outweighs the small investment in AdES or QES signatures that could have prevented it. It’s about safeguarding your business’s success.”

Final Thoughts

Simple Electronic Signatures are a convenient starting point for digital agreements but come with significant limitations. For businesses or individuals seeking reliable and enforceable agreements, upgrading to AdES or QES is a smart move.

Whether you’re handling casual agreements or high-stakes transactions, we’ll make it easy, no matter where you do business. Get in touch!