Part 4 of the Contract and Commercial Law Act 2017 (formerly the Electronic Transactions Act 2002) is the latest legislation on electronic transactions and electronic signatures. As long as certain conditions are met, an electronic signature is as valid under New Zealand law as a written signature. Electronic signatures have been valid under New Zealand law for some time. Given the challenges of the Covid-19 crisis and the ongoing restrictions on our ability to travel and meet others, it is likely that we will see widespread adoption of electronic signatures as the parties try to get things done remotely. However, the use of electronic signatures has not yet completely replaced the practice of signing documents by hand. This article summarizes the Electronic Signatures Act and examines the differences (and advantages) of “digital signatures” compared to other forms of electronic signatures. For the purposes of the law, an electronic signature is considered reliable if: Disclaimer: The information on this page is intended to help companies understand the legal framework for electronic signatures. However, Adobe cannot provide legal advice. You should consult a lawyer on your specific legal issues. Laws and regulations change frequently, and this information may not be current or accurate. To the fullest extent permitted by law, Adobe provides this material “as is”. Adobe disclaims all representations or warranties of any kind, express, implied, or statutory, with respect to this material, including any representations, warranties, or warranties of merchantability, fitness for a particular purpose, or accuracy. 2.
The Companies Office accepts an electronic signature on all documents and information that currently require a traditional signature, provided that this option is specified in the document in question or its policies. The Contract and Commercial Law Act of 2017 (CCLA) regulates the use of electronic signatures. The law states that electronic signatures can be just as enforceable as written signatures, provided they meet specific requirements for identification, reliability and consent. Specifically, these requirements are as follows: If you want your business to adapt to both the COVID-19 pandemic and the increasing use of technology, it`s a good idea to allow electronic signatures for electronic transactions. Indeed, almost all businesses and documents can use online signatures, with a few notable exceptions court documents or other sworn documents under oath. However, if you choose to use electronic signatures in your organization, you must ensure that these signatures meet the identification, reliability, and consent requirements described above. The best way to do this is to make sure that your method of obtaining signatures is as secure as possible, which is usually done through digital signature software. Part 4 of Subdivision 3 of the Contracts and Commerce Act, 2017 (the “Act”) governs the use of electronic technologies for legal purposes. It aims to promote functional equivalence (meaning that the law does not distinguish between paper and electronic transactions) and technological neutrality (meaning that the law does not specify or favour a particular technological platform). Electronic signatures can be used whether or not they need to be witnessed.
It is preferable that the witness is physically present, even if an electronic signature is required. However, some practices have been put in place to allow virtual testimonial, especially during the pandemic. These require additional security and evidence to show that the witness actually saw the signature even if he was not physically present. Can electronic signatures be used for documents that need to be attested? In New Zealand, some use cases require a traditional “wet” signature. Part 4 of CCLA explicitly excludes the use of electronic signatures if: COVID-19 restrictions have led to a massive increase in the number of electronically signed documents, with surveys conducted in 2021 showing that two-thirds of businesses have started using electronic signatures (“electronic signatures”) in the past two years. [1] We therefore recommend that you do not use electronic signatures if dealing with businesses or individuals in Australia and sign documents. We also recommend that electronic signatures not be used if an Australian company is required to sign under section 127 of the Corporations Act. A digital signature is the safest method. In addition, there are different types of software that your company can use to create electronic signatures. You should encrypt your signing forum and verify it with code to make sure it`s as secure as possible. Electronic signatures are likely to become more common as the business environment continues to change to rely more and more on technology.
They allow you to send and sign digital documents online without having to print or return documents signed with a handwritten signature. You can use electronic signatures to sign different types of contracts, including commercial contracts, employment contracts, leases, and many more. In addition, you can even use them for the sale and purchase of real estate. Finally, you can also use electronic signatures to sign the documentation of the trustee, shareholders and directors. Examples of popular digital signature technology packages include secure signature and right signature. This software is not available for free to users, and in some cases, the cost of obtaining and maintaining a digital signature may not be profitable/desirable for transactions of lesser value and/or lower risk. However, if an important document needs to be signed electronically, a digital signature offers the highest level of security and reliability, provided that legal requirements are also met. There are certain documents where electronic signatures cannot be used, including (among others): HelloSign is also able to provide electronic records under the New Zealand Evidence Act 2006 to support the validity, authenticity and existence of acceptance of a contract. New Zealand law provides guidance on the use of electronic signatures on a variety of legal documents.
In most cases, an electronic signature is as valid as a handwritten signature, provided that the electronic signature meets the identification, reliability and consent requirements described above. The law on electronic signatures is expected to evolve as more and more people and organizations use electronic signatures as an alternative to handwritten signatures. The ELECTRONIC TRANSACTIONS ACT OF 2002 established new rules to enable the use of e-mail and other electronic technologies for businesses and in the interaction between government and the public. Electronic signatures or electronic signatures are common in New Zealand today. This is due in part to the COVID-19 pandemic, which prohibits people from signing documents face-to-face in the traditional way. If your business wants to adapt to this new way of working, you may be wondering if electronic signatures work for you. You can save your business time and money. This article describes the situations in which you can use electronic signatures, the criteria that your electronic signatures must meet to be valid, and some suggestions as to the type of electronic signature that is best for your business. There are important general exceptions to the application of the part of the Act that deals with compliance with legal requirements electronically.
Some of the most important exceptions are: When you become a member, you have an experienced legal team ready to answer your questions, draft and review your contracts, and resolve your disputes. All the legal support your business needs for a low monthly cost. Part 4 of CCLA states that an electronic signature has the same level of applicability and lawfulness as a “wet signature” as long as the electronic signature meets the following requirements: the means of creating the electronic signature are related to the signatory and not to any other person; and for an electronic signature to be valid, the law requires three fundamental elements: (1) identification; (2) reliability; and (3) Consent. To continue working, an electronic signature meets the legal requirement of a signature (including the signature of a witness) if: We use signatures to prove the security and legitimacy of documents, so all electronic signature methods used by your company must guarantee this. However, there are different types of electronic signatures. You can use the following: The most technologically secure signature (and the form of electronic signature required to comply with the new LINZ guidelines) is a digital signature. A digital signature is a form of encryption technology created and verified by code that provides a platform to create a secure electronic signature. Its purpose is to verify the authenticity of a signed document. Digital signatures provide a log of signature activity, and once a signature is created, that signature and its information, as well as the contents of the document, are locked and cannot be modified or manipulated. This law mainly allows companies to use electronic technologies if they wish, in order to comply with legal requirements for the creation, disclosure or storage of information in writing, provided that the person receiving the information accepts it.
In addition, the law allows the public to use emails and/or faxes to communicate with the government instead of documents that would be required in writing. Conversely, the government may use emails and/or faxes to send communications to people in the public.