# Digital signature

Source: https://contracko.com/glossary/digital-signature

# Digital signature

A cryptographically secured electronic signature that authenticates a signer and a document's integrity.

## 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.

### How Contracko helps

Contracko accepts signed contracts in PDF and Word format via upload or email import, so agreements signed on any platform flow directly into the repository without a manual logging step. Once in the repository, AI review extracts key dates and obligations from the signed document, and deadline reminders activate automatically. The full signed document is retained in the version history.

## 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.

## Relevant for

[IT Services](https://contracko.com/industries/it-services)[Software & SaaS](https://contracko.com/industries/software-saas)[Financial Services](https://contracko.com/industries/financial-services)[Government & Public Sector](https://contracko.com/industries/government)

## Related clauses

- [Notices Clause](https://contracko.com/clause-library/notices)
- [Entire Agreement Clause](https://contracko.com/clause-library/entire-agreement)
- [Governing Law Clause](https://contracko.com/clause-library/governing-law)

## Related terms

- [Contract automation](https://contracko.com/glossary/contract-automation)
- [Authorised signatory](https://contracko.com/glossary/authorised-signatory)
- [Effective date](https://contracko.com/glossary/effective-date)
- [Contract archiving](https://contracko.com/glossary/contract-archiving)

### Never miss a contract deadline again

- AI finds renewal and notice dates
- Risks and obligations are surfaced automatically
- Reminders help you act before dates slip

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## Frequently asked questions

Common questions about this term.

- **Q:** Is a digital signature legally valid in the EU?
  **A:** Yes. Under eIDAS (Reg. 910/2014) a qualified electronic signature has the same legal effect as a handwritten signature across all member states.

- **Q:** What is the difference between a simple, advanced and qualified electronic signature?
  **A:** A simple e-signature is any electronic mark intended as a signature, such as a typed name. An advanced e-signature is uniquely linked to the signer and detects document changes. A qualified e-signature meets the highest standard under eIDAS and has the same legal effect as a wet-ink signature.

- **Q:** Are there contract types that cannot be signed digitally?
  **A:** Yes. Under Dutch law certain transactions require a notarial deed or wet-ink signature, including the transfer of real property, certain family law matters and some company law acts. For most commercial contracts, a digital signature is legally sufficient.

- **Q:** What happens if someone disputes a digitally signed contract?
  **A:** The audit trail is the key evidence: timestamp, signer identity verification, document hash and certificate data. A qualified electronic signature shifts the burden under eIDAS, meaning the person who signed cannot easily deny it without disproving the certificate record.

- **Q:** How should digitally signed contracts be stored?
  **A:** In a secure, access-controlled repository that retains the complete signed document together with its signature evidence. The file should be in a format that preserves the embedded signature data, typically a signed PDF with the certificate embedded, rather than a re-exported or re-printed copy.

## See these terms in your own contracts

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