Posts Tagged ‘electronic signature’

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Government’s response to the Law Commission’s report on Electronic execution of documents

12/03/20 – The UK government has issued a Statement in response to the Law Commission’s report on Electronic execution of documents.  My article on the Law Commission’s report can be accessed here.

Key takeaways from the government’s Statement:

  1. The government agrees with the report’s conclusion that businesses and individuals can feel confident in using e-signatures in without the need for primary legislation.
  2. The government accepts the report’s recommendation that an Industry Working Group should be established to consider, in particular, the security and technology of electronic signatures.
  3. The Industry Working Group will also be asked to consider the question of video witnessing of electronic signatures.
  4. In accordance with the report’s recommendation, the government will ask the Law Commission to undertake a broader review of the law of deeds. The timing for the review will however be subject to government and Law Commission priorities given the existing volume of law reform work.

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Law Commission’s report on Electronic execution of documents

25/09/19 – Following a project focusing on uncertainties regarding the formalities around the electronic execution of documents, the Law Commission issued its report on Electronic execution of documents on 6th September 2019.

Key takeaways:

  1. Electronic signatures can be used to execute documents, including where there is a statutory requirement for a signature.
  2. An electronic signature is capable in law of being used to execute a document (including a deed), as long as the signatory intends to authenticate the document and any relevant formalities, such as witnessing, are satisfied.
  3. English courts have traditionally been flexible in recognising different form forms of signature, including electronic signatures such as a name typed at the bottom of an email, or the ticking of an “I accept” box on a website.
  4. The approach of the UK courts is consistent with the EU eIDAS Regulation (EU/910/2014), which states that an electronic signature cannot be denied legal validity because it is electronic.
  5. There is uncertainty whether deeds can be witnessed remotely via video witnessing.  The Law Commission’s view is that it is not currently legally permitted.

The Law Commission’s recommendations include:

  1. Establish an industry working group to consider practical and technical issues around electronic signatures, and provide best practice guidance for their use in different types of transactions.
  2. Industry working group to review video witnessing of deeds, and government to consider appropriate legislative reform.
  3. Review the law of deeds, and consider whether deeds remain fit for purpose (whether executed on paper or electronically).
  4. Government to consider codifying the law on electronic signatures to improve the accessibility of the law.

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