In a report published this week, the commission explains why e-signatures are viable way to execute documents and deeds, including where there is a statutory requirement for a signature, and makes recommendations for reform to address issues surrounding their use.
The commission notes the flexibility of common law in recognising a range of types of signature, including an ‘X’, initials, a printed name and a description of the signatory such as ‘Your loving mother’. Moreover, the commission states, the courts have accepted e-signatures including name typed at the bottom of an email or clicking an ‘I accept’ tick box. These decisions supplement the EU eIDAS regulation, which states that e-signatures cannot be denied legal validity simply because they are electronic.
Stephen Lewis, Commercial and Common Law Commissioner, said: ‘Electronic signatures can offer quicker and easier transactions for businesses and consumers.
‘Our report aims to provide an accessible statement of the law.’
However, the commission also identifies concerns, including that e-signatures may be more susceptible to fraud, which could put vulnerable people at risk. There are also issues of reliability and security of the technology involved and the question of remote witnessing―the commission’s view is that the current law does not allow for remote witnessing via video link.
It recommends that an industry working group be set up to provide best practice guidance, including on video witnessing, followed by legislative reform. It calls for a future review of the law of deeds and points out that the government may wish to codify the law on e-signatures to make the law more accessible.
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