Electronic signatures have become increasingly prevalent in various transactions, from personal agreements to corporate agreements. As businesses and individuals in Cyprus navigate this digital shift, understanding the legal framework surrounding electronic signatures is crucial. This article delves into the validity of electronic signatures under Cypriot law and provides insights into their acceptance and implications.
Legal Framework for Electronic Signatures in Cyprus
EU Regulation 910/2014: This regulation, directly applicable in Cyprus, lays the foundation for electronic signatures among other digital identification methods (the EU Regulation).
Cypriot Law 55(I)/2018: Cyprus has further strengthened its stance on electronic signatures by incorporating the EU Regulation's provisions into local legislation. This law addresses electronic identification and associated matters (the Cypriot Law).
Types of Electronic Signatures
Cyprus recognises three distinct types of electronic signatures, namely:
Electronic Signature: Essentially, this is data in electronic form associated with other electronic data, used by the signatory for signing purposes.
Advanced Electronic Signature: a more secure form, this signature is uniquely linked to the signatory and can detect any subsequent changes in the associated data.
Qualified Electronic Signature: The pinnacle of electronic signatures, this is an advanced electronic signature with added layers of security, equivalent to a handwritten signature in its legal weight.
Legal Implication and Acceptance of Electronic Signatures
Legal Effect: Electronic signatures will not be denied legal effect or admissibility in legal proceedings based on their electronic nature or if they do not meet the Qualified Electronic Signature criteria. However, Qualified Electronic Signatures carry the highest judicial value.
Reflection into Cypriot Law: The Cypriot Law aligns with the EU regulation, stating that electronic signatures are admissible in both civil and criminal proceedings in Cypriot courts. This is irrespective of whether they meet the requirements for Qualified Electronic Signatures.
Practical Considerations
Contract Validity: As long as all contractual elements are in place, a contract executed with an electronic signature is considered valid under Cypriot law.
Formality Requirements: Some contracts under Cypriot law have specific formality requirements, such as being "in writing" or witnessed. With the recent introduction of the electronic signatures legal framework, it remains to be seen how the Cypriot courts will interpret contracts signed electronically in the absence of witnesses.
Local Acceptance: Despite the legal framework being in place, local authorities and institutions in Cyprus are still warming up to electronic signatures. There have been instances of reluctance in accepting them.
Conclusion
While electronic signatures offer convenience and efficiency, it is essential to be aware of the evolving legal landscape in Cyprus. As the country adapts to this digital transformation, businesses and individuals should stay informed and seek expert advice when necessary.