Electronic signatures are an integral part of the modern contracting process. Not only do they provide a new level of simplicity and speed, but they are in many ways more trustworthy. Nevertheless, there are still doubts out there on their legality and validity.
At the end of the day, a signature in any shape and form has one common purpose: prove that something was agreed upon, and who agreed on it. To gain trust in the signature, the question that needs to be answered is: How do we ensure that the right person signed and had the intention to sign?
What is the eIDAS regulation?
eIDAS is an EU regulation adopted in 2014. It stands for "Electronic Identification, Authentication and Trust Services" and the goal of the regulation is to achieve more efficient and secure electronic interactions in all EU countries. By means of that, eIDAS is your go-to reference for the validity of e-signatures.
What is an electronic signature?
According to eIDAS, an electronic signature is data in electronic form which is attached to or logically associated with other data in electronic form and which is used by the signatory to sign. An electronic signature can therefore be as simple as signing off an email. However, depending on the sensitivity of the document, you may want to further verify the signature.
To achieve a common standard and trust in electronic signatures, eIDAS defines three levels: simple, advanced, and qualified. For a broader introduction to what electronic signatures are and how they work, see What is an Electronic Signature?
The three levels of electronic signatures
Simple Electronic Signature (SES)
The simplest and most common form. Includes typed names, scanned signatures, and click-to-sign mechanisms. Suitable for low-risk agreements where identity verification is less critical.
Advanced Electronic Signature (AES)
Uniquely linked to the signatory, capable of identifying the signatory, created using data under the signatory's sole control, and linked to signed data in a way that detects any subsequent changes. Requires an identity verification step before signing.
Qualified Electronic Signature (QES)
The highest level. Equivalent to a handwritten signature in all EU member states. Created using a qualified electronic signature creation device and based on a qualified certificate. Required for certain regulated documents and high-risk agreements.
Practical tips when choosing an e-signing provider
When selecting an e-signature tool, consider: which signature level your agreement types require, how signing integrates with your contract management workflow, whether the provider holds relevant certifications, and what audit trail and evidence package the provider generates.
For organizations using a CLM platform, the most important question is how well the e-signature tool connects to it. Standalone signing creates manual steps and metadata gaps. See eSignature Integrations for Contract Lifecycle Management for a practical overview of how providers connect to lifecycle systems, and How eSignatures Fit Into Contract Lifecycle Management for guidance on embedding signing within a governed workflow.
