Digital signature

Definition

A digital signature is a form of electronic signature that uses cryptography to verify the signer's identity and prove the document has not been altered. Under the EU eIDAS Regulation a qualified electronic signature carries the same legal effect as a handwritten one, making digital signing a cornerstone of contract automation.

Example

Both parties sign a framework agreement remotely with qualified e-signatures, and it is legally binding without any paper.

Why this is a business risk

Using simple image-based signatures or unsigned email exchanges for material agreements creates evidentiary and authenticity risks. If the counterparty disputes a signed document or claims the text was altered after signature, a basic scan offers little protection. The bigger operational risk is that without a defined signing process, signed contracts end up scattered across inboxes rather than logged in a repository where deadlines and obligations can be tracked.

How to manage it

• Select the appropriate signature level for each contract type: simple e-signatures for low-risk agreements, advanced or qualified for high-value or regulated transactions.
• Ensure the signing platform retains the signature certificate and a hash of the document, not just an image, so authenticity can be verified later.
• Log signed contracts in the contract register immediately after execution, linking the signed document to its renewal and obligation deadlines.
• Keep the signing audit trail, including timestamps, IP addresses and certificate data, alongside the signed document for the retention period.
• Check whether the agreement type requires a formal deed or wet ink signature under applicable law, since some transactions cannot be completed by digital signature alone.

Legal references

• Reg. 910/2014 EU eIDAS Regulation, electronic identification and trust services

Unless marked otherwise, references are to Dutch law (Burgerlijk Wetboek, the Dutch Civil Code); EU instruments such as the GDPR apply across the EU. This is general information, not legal advice. Other jurisdictions treat these concepts differently. Verify the current text and your situation with a qualified lawyer.