eSignature Legality
in Singapore
Singapore is one of the first countries to have implemented legislation for electronic signatures with the implementation of the Electronic Transactions Act in 1998. Singapore was also the first country in the world to ratify the UNCITRAL Model Law on Electronic Commerce. The ET Act was further amended in the year 2010 to modernize the laws according to the fast paced development in the technological arena surrounding electronic transactions.
The objective of ET Act was
- To facilitate electronic communications,
- To facilitate electronic filing,
- To establish uniformity of law for electronic transaction,
- To instill public confidence in the use of electronic commerce.
Under Electronic Transactions Act, no information shall be denied legal validity, or admissibility solely due to its electronic nature. The Act intends for the country to adopt electronic commerce and in turn has taaken measures to legitimize the same while protecting the rights of its citizens.
The preconditions for e-signature to be legally effective under the ET Act are:
- There must be a reliable guarantee about the probity of information in the electronic record, from the time when such document was created;
- The electronic record should be displayed when it is required to be provided to that person; and
- Any additional requirements relating to electronic records specified by the public agency supervising the provision or retention of such records should be complied with.
Under Singapore law, an electronic signature is legal for a contract but the parties have to present relevant evidence in court in support of such documents to prove the validity and admissibility of such signature.
The ET Act provides a coded regulation dealing with the rights and obligations of parties in various kinds of electronic transactions, as well as the legality of electronic contracts and the validity, enforceability and admissibility of the electronic signature. The government of Singapore has continuously encouraged businesses to transact electronically and fostered electronic commerce by promoting electronic signatures and maintaining electronic records.
Use cases of electronic signatures in Singapore
- Employment contracts;
- Commercial agreements between corporate entities;
- NDAs;
- Procurement documents;
- Sales agreements;
- Consumer agreements;
- Negotiable Instruments;
- Bills of Exchange;
- Promissory Notes;
- Bills of Ladings;
- Lease agreements; and
- Purchase and sales contracts.
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 Singapore
- Wills;
- Indentures;
- Declaration of trust (except implied, constructive, and resulting trusts);
- Power of attorney;
- Contracts concerning sale of immovable property;
- Conveyance of immovable property; and
- Transfer of interest in immovable property.
In addition to providing resources on legal framework related to electronic signatures, Certinal offers a legally compliant and user-friendly e-signature application.
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 at 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.
