The Legality of eSignatures in Estonia

Explore the legality of electronic signatures in Estonia and the laws and regulations that govern their use.

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eSignature Legality in Estonia

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Are eSignatures Legally Binding in Estonia?

Electronic signatures are legal in Estonia, and as an EU member state, e-signatures are regulated in the country through eIDAS. A written signature is not always required for a contract to be valid in Estonia. Contracts are deemed valid as long as the parties involved are legally competent and have reached an agreement, whether that agreement is made verbally, on paper, or electronically. A contract cannot be denied enforceability simply because it is in a digital format. To prove that a contract is valid, parties sometimes have to present evidence in court. Electronic records are admissible as evidence under Article 274 of the Code of Civil Procedure.

Documents that can be signed electronically

Simple electronic signatures can be used in Estonia in the use cases below:

  • Commercial agreements between corporate entities such as NDAs, procurement documents, purchase orders, sales agreements, invoices, and more
  • Consumer agreements e.g., sales terms, new retail account opening documents, services terms, order confirmations, and more
  • Some HR documents including documents relating to employment terms and conditions that are not mandatory under Estonian law, privacy notices, benefits paperwork, and more
  • Licenses of intellectual property
  • Residential and commercial lease agreements
  • Intangible property transfers

For certain types of documents, other electronic signatures may be required, these documents include:

  • Employment contracts – QES
  • Acknowledgement of an obligation – QES
  • Life annuity contracts – QES
  • Agreements regarding non-compete obligations after an employment contract expires – QES
  • Author’s contracts – QES
  • Transactions between a public limited liability company and its sole shareholder – QES
  • Agreement with an employee about proprietary liability – QES
  • And more

 

Documents that may not be electronically signed

In Estonia, there are specific use cases that do not permit the use of electronic signatures and require a handwritten signature and formal notarial processes that are not typically compatible with e-signatures or digital transactions. These include:

  • Inheritance agreements
  • Certain minutes of shareholder meetings
  • Marital property contracts
  • Trademark pledge agreements
  • Maintenance contracts between dependents and providers
  • Transactions with immovable property
  • Applications submitted to certain public registers
  • Consent of a trademark owner for use of a trademark in a business name

 

Types of e-signature permitted in Estonia

The eIDAS regulation defines an electronic signature as data in electronic form which is attached or logically associated with other data in electronic form and which is used by the signatory to sign. It distinguishes between three types of e-signature, simple, advanced, and qualified.

  • Simple – the most basic form of e-signature that can be in the form of typing your name at the bottom of an email or checking an approval box. There are no specific security or identity verification requirements for a simple e-signature.
  • Advanced – this type of signature is uniquely linked to the signer, can accurately identify the signer, is created using data that the signer can be confident is under their sole control and is linked to the data in a way that detects any subsequent changes that are made. Advanced electronic signatures are more secure than simple signatures and are legally binding in most use cases.
  • Qualified – this type of signature is similar to advanced but has additional requirements providers must adhere to. They must be certified based on public keys that have been issued using proper technological means. This means that the identity verification process is multi-step, using both encrypted keys and two-factor authentication.

Estonia does not have a separate definition for electronic signatures outside of the one established by eIDAS.

 

Notable legality changes since 2020

None.

 

Publicly Accessible Links to Laws/Regulations Discussed

 

Disclaimer

The content provided on this website is meant for general informational use only and does not constitute legal advice. Legal regulations on this topic can evolve rapidly, so E-Sign does not ensure that the information presented here is always up-to-date or accurate. If you have particular legal concerns regarding any details on this site, it is recommended that you consult with a licensed attorney in your jurisdiction. 

 

Last Updated 9th October 2024

 

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