Key differences between digital and electronic signatures
In South Africa, both digital and electronic signatures are commonly used for signing documents, but they differ significantly in terms of security, legality, and in the way they are used. While electronic signatures are a broad term that includes any form of electronic agreement, digital signatures are a more secure, cryptographic method that offers stronger verification and legal standing.
Q1: What is the difference between a digital and an electronic signature
Digital signature. A cryptographic method using public key infrastructure (PKI) to ensure authenticity and integrity. It’s highly secure, and verified by a certificate authority.
Electronic signature. A broader term for any electronic form of signing, such as typing a name, using a scanned signature, or clicking ‘I agree’.
Q2: Which one is more secure?
Digital signature. Offers high security due to encryption and public key verification, ensuring authenticity and preventing tampering.
Electronic signature. Security varies. Simple methods (typed names and scanned signatures) can be less secure than digital signatures.
Q3: Are they legally valid in South Africa?
Digital signature. Legally recognised under the Electronic Communications and Transactions Act (ECTA), treated as equivalent to a handwritten signature.
Electronic signature. Also, legally valid under ECTA, but may require additional verification depending on the method used.
Q4: When should I use each one?
Digital signature. Best for high-stakes transactions, legal contracts, and government filings requiring strong security.
Electronic signature. Suitable for informal agreements, approvals, or simple online transactions.
Q5: Do both provide proof of authenticity?
Digital signature. Provides authenticity and an audit trail, making it highly reliable in legal contexts.
Electronic signature. Reliability depends on the method. For example, typed names or scanned signatures may not offer robust proof without extra verification.
Q6: How are they verified?
Digital signature. Verified using a certificate authority and public key, ensuring both the identity of the signer and the integrity of the document.
Electronic signature. Verification depends on the method; some methods may lack built-in verification.
Q7: What documents still require wet ink signatures?
Even though the ECT Act permits the use of electronic and digital signatures, there are some instances where wet ink signatures are still required (so don't throw your pens out just yet!). These include:
Wills and codicils. These must be signed in wet ink to be legally valid (see our blog post on Wills and Testaments in South Africa).
Bills of exchange. This includes negotiable instruments like cheques.
Documents for the transfer of immovable property. Deeds and other documents related to the transfer of property ownership.
Long-term leases exceeding 20 years (see our blog posts on Leases and Triple Net Leases).
Documents requiring notarisation. Any document that must be notarised or authenticated by a notary public (see our blog post on Certified Copy vs Affidavit vs Notarisation).
Conclusion
Digital signatures are the preferred choice for legal, high-security transactions in South Africa, offering strong security and legal validity.
Electronic signatures are more flexible for everyday transactions but may not offer the same level of security and legal weight unless additional safeguards are applied.
More more information on the Electronics Communications and Transactions Act, effective 30 August 2002, here is the link: Electronic Communications and Transactions Act 25 of 2002 | South African Government
The information provided is for information purposes and does not constitute legal advice. Contact a lawyer should you require assistance. Legal Dynamix is not a law firm and does not provide legal advice on the subject matter contained herein.
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