Digital Signatures vs. Wet Signatures: Legal Validity in Canada
The Shift to Electronic Transactions
Canadan law recognizes the validity of electronic signatures, largely governed by the **Electronic Signatures Act**. This allows businesses to transition away from time-consuming physical ‘wet signatures’ (ink) toward more efficient digital processes.
Understanding Digital Validity
- **Electronic Signatures (E-Signatures):** This refers to any electronic sound, symbol, or process (like a scanned image of a signature or a typed name) adopted by a person with the intent to sign. These are generally accepted in commercial contracts unless the contract specifies otherwise.
- **Advanced Digital Signatures:** These are encrypted, verifiable signatures created using specific security technology (Public Key Infrastructure – PKI) that links the signature uniquely to the signatory. These offer the highest level of legal assurance and non-repudiation.
- **Exceptions:** Documents pertaining to real estate, wills, and specific governmental notices often still require a traditional wet signature under current laws.
For internal and low-risk external documents, using verifiable E-signature platforms significantly boosts office automation. Always confirm with legal counsel for high-value contracts.