eSignature Legality
in Canada
Canada is popular for its flexible and technology-friendly approach concerning contracts and their execution. The Personal Information Protection and Electronic Documents Act (PIPEDA) of 2004 was implemented on a federal level. Under PIPEDA, all types of eSignature are recognised as equivalent to a physical one and are also valid in court. All companies operating in the Canadian market are free to use both electronic and paper documents, as the law does not distinguish between their validity. On the provincial level, nine provinces have adopted the the Uniform Electronic Commerce Act (UECA) of 1999. The essentials of a valid eSignature under UECA and PIPEDA are quite similar.
Key Conditions:
For an eSignature to be considered valid under Canadian Laws, it must meet the following requirements:
- The eSignature must be unique and distinctive to the signatory
- The eSignature has to be created under signer’s sole control
- The eSignature can confirm the identity of the signatories
- The eSignature must be protected by technology that can identify any alteration made by the signatories in the document
Use cases of electronic signatures in Canada:
- The deed signed by a notary
- Commercial agreements
- Purchase orders
- Non-Disclosure Agreements (NDAs)
- Invoices
- Sales agreements
- Order acknowledgments
- Distribution agreements
- Services agreements
- Software license agreements
- Employee invention agreements
- Benefits paperwork
- Privacy notices
- Commercial and residential lease agreements
- Consumer agreements
- Service terms
- Consumer credit agreements
- Purchase orders
- Shipment documents
- Order confirmations
- Software licenses
- User manuals
The COVID-19 pandemic has radically changed our lifestyles and how one conducts business. Most non-essential companies have established completely remote work setups. This “new normal” has concentrated more attention on electronic means of transactions. The “new normal” in the age of Covid-19 proceeds to facilitate the use of eSignatures.
Documents that cannot be e-signed in Canada:
- Wills
- Trusts created through a will
- Power of Attorney
- Negotiable Instruments
- Documents concerning titles
- Transfer deeds relating to immovable property
DISCLAIMER
Certinal is making available the information and materials in this article for informational purposes only and is meant to help companies understand eSignature’s application in a legal framework. Laws change rapidly and Certinal makes every reasonable effort to keep the content of this article current, hence Certinal makes no claims or representations that the information contained in this article is true, accurate, correct, or current. The law is different from jurisdiction to jurisdiction, and even similar laws may be interpreted differently in different courts or in different places. Since these factors differ according to individuals and businesses, Certinal is not liable for any consequence of any action taken by any third party relying on material/ information provided under this article. The contents hereof should not be construed as legal advice in any manner whatsoever. In cases you require any assistance; you must seek independent legal advice.
