In recent years, we have witnessed a revolution in corporate processes driven by digital transformation. Companies of all sizes and segments have sought to optimize their operations and reduce costs through the adoption of innovative technologies, such as contract with digital signature.
After all, digital signature consolidates itself as a fundamental tool, optimizing the contract signing process, ensuring legal security and facilitating the records management.
In this article, we will cover the best practices, tools and legal considerations for executing contracts with digital signatures, enabling professionals and companies to take advantage of the benefits of this technology.
Summary
- Definitions and difference between electronic signature and digital signature.
- How cryptography works with private and public keys in validation.
- How to create an electronic contract (platform, template, clauses, review)
- How to identify parties with digital certificates and validate certificates.
- Flow of sending, authenticating, and confirming signatures on the contract.
- Best practices for secure archiving, backups, and access control.
Quick facts
- A digitally signed document can have the same legal validity as a physical document when it meets the applicable rules.
- Provisional Measure 2.200-2/2001 recognizes the legal effects and presumption of veracity in relation to the signatories of electronic documents, reinforcing evidentiary security.
- Law No. 14.063/2020 classifies electronic signatures as simple, advanced, and qualified, with different levels of security and application.
What is a contract with a digital signature and what is an electronic signature?
Contract with digital signature uses digital signature (a type of electronic signatureBased on cryptography, a digital certificate and private key are used to generate the signature, and a public key is used for verification. This ensures the authenticity and integrity of the document, facilitating signing and validation in electronic processes.
An electronic signature encompasses any marking or consent on digital documents, while a digital signature is a specific form of electronic signature that uses cryptography to guarantee the document's authenticity through digital certificates and public and private keys.
The private key is used to create the signature, while the public key verifies its authenticity. During digital signing, an algorithm creates a hash of the document content, which is encrypted with the private key, allowing the corresponding public key to verify the signature.
| Element | Electronic signature | Digital signature |
|---|---|---|
| Definition | Marking/consent in digital document | Specific type of electronic signature with encryption |
| Technical mechanism | This may vary depending on the acceptance/authentication method. | Uses digital certificate, hash, and public/private keys. |
| Verification | It depends on the method used. | Validation using the public key linked to the certificate. |
Contract with digital signature: difference between digital signature and electronic signature
The process of drafting a contract in electronic format involves several steps, from creating the document to inserting relevant clauses and information. Below is an overview of this process.
1. Choosing the platform or software
First, choose a platform or with reliable to create the electronic contract, which can vary between specific software for this purpose and digital signature platforms with functionalities for drafting and signing contracts.
2. Contract template
Choose a pre-formatted contract template or create one from scratch, depending on the specific needs of the transaction. Make sure the template contains all the necessary clauses to address the terms of the agreement in a clear and comprehensive manner.
3. Insertion of clauses and information
Insert essential clauses and information, such as details of the parties involved, description of the goods or services, payment terms, deadlines and other specific contractual provisions.
4. Review and editing
Carefully review the contract to avoid errors or omissions. Consider engaging involved parties or legal advisors to review and provide feedback. During this step, make edits as needed to meet the needs of all parties.
5. Adding Digital Signatures
Add the digital signatures of the parties involved – either through the digital signature functionality of the chosen platform or according to local legal requirements. Each party must digitally sign using its digital certificate and corresponding private key.
6. Storage and management
Keep the contract securely. Platforms offer cloud storage options or secure servers, ensuring access and protection against loss or tampering.
In a contract with digital signatures, how is the identification of the parties using digital certificates carried out?
To identify the parties involved in a contract with digital certificates and facilitate the process of electronically sending the contract in a safe and efficient way, it is necessary to follow some steps presented below.
1. Digital certificates
Each party to the contract must have a valid digital certificate from a trusted certification authority, used to guarantee the authenticity of digital signatures.
2. Verification of digital certificates
Before starting to digitally sign the contract, check the validity and authenticity of the digital certificates of the parties involved, using tools from the certification authority or digital signature platform.
3. Electronic submission of the contract
The contract can now be sent electronically for signature. Digital signature platforms often offer sending options via email or secure link.
4. Notification of parties
When submitting the contract electronically, the parties are notified and given instructions on how to access, review, and digitally sign the document.
5. Digital signature of the contract
Each party accesses the contract electronically with their digital certificate and follows the platform's instructions to add the digital signature, usually by clicking a sign button or entering a password linked to the certificate.
6. Confirmation of subscriptions
After all parties have digitally signed, the platform generates a final signed document, which can be downloaded and stored securely by all parties. This document serves as proof of the transaction and can be used if necessary.
The procedure for a contract with digital signature
The parties receive a notification or link to access the contract electronically, which may be via email or digital signature platform.
After accessing, they are asked to authenticate their identity to digitally sign the contract, entering a password associated with the digital certificate or carrying out identity verification, using a code sent by SMS or email.
After authentication, they can digitally sign by clicking a button, followed by confirmation by the platform.
💡 Tip! Need a free digital signature? Click here and create yours now!
The importance of securely archiving contracts with digital signatures.
It is essential to ensure secure archiving of the digitally signed contract using secure cloud storage services with robust encryption and security measures. Performing regular backups of the contract prevents data loss in the event of a system failure or other incidents, ensuring its integrity and accessibility when necessary.
It is essential to control access to the contract to allow only authorized people to view or edit it, and to maintain detailed records about contract archiving, including information about signatures and dates, for auditing and regulatory compliance purposes.
Contract with digital signature: legal validity and requirements
Digital contracts have globally recognized legal validity, with specific regulations in different countries. In Brazil, Law No. 14.063/2020 equates physical and electronic documents, as long as authenticity and integrity requirements are met.
There are different types of electronic signatures: the simple signature is used in less complex transactions, while the digital signature, with digital certificates, is more secure and commonly used in complex commercial and legal transactions.
Main benefits of a digitally signed contract
The adoption of digital contracts brings several benefits, such as saving time and money, improved security, efficient document organization and facilitating negotiation.
With advanced technologies, digital contracts reduce costs, guarantee authenticity, simplify document management and make negotiations more agile and flexible – true advantages strategic for companies in search of efficiency and success in commercial processes.
⚠️ Also check out these related articles 👇
➡️ Learn how to sign with a digital certificate
➡️ Understand what a digital signature verifier is for
➡️ What is a digital contract and how to adopt one for your company
How to create a contract with a digital signature: step by step (10 steps)
To carry out the digital signature procedure for contracts, there is no mystery – especially if you follow the 10-step tutorial that we present below, detailing everything about how to make a digital signature through the ZapSign platform.
Step 1 – Log into the system
Visit our website, and enter your login and password, to then be redirected to the main page.
Step 2 – Generate a new document
Click the “NEW” button to go to the next screen and generate a new document.
Step 3 – Upload the .PDF file
By clicking on “select document”, you will be able to upload the document to be signed.
This document must be in the format PDF – therefore, if it is in another format, you must convert the file.
Step 4 – Sign with digital certificate
Select the “Advanced Authentication” option and enter the names of the signatories in the field below “Who will sign”. If the signatories are already added to your contact list, click on the “Contacts” option to select and insert them.
Go to “Authentication Method” and click on the last option, “Digital Certificate”.
Step 5 – Add your own signature to the document
If your own signature is also required for document validation, click on the “I will sign” option, enter your name there and tap on the “Continue” button to proceed to the next screen.
Step 6 – Sort between subscriptions and visas
Position where on the document the signatures and visas should be inserted, by clicking on the chosen space, right after the signatory's name, and choosing between signature or visa.
From then on, signatures and visas will be displayed in the places you indicated, just as they usually are on a physical document. Then click on “Save and Continue” to proceed.
Step 7 – Generate and send the subscription links
If contact with your signatory is made via WhatsApp, you must click on the button with the app's logo and send the link directly to the person.
If the chosen medium is another, no problem: just go to the blue icon next to the link to copy it and, later, paste it wherever you prefer.
You can also tap the “Enable automatic email sending” option and enter the email addresses of the people who will subscribe.
Step 8 – Sort the signatories
If necessary, use the “Order signatures” button to define the order of signatories, dragging their names on the screen to the appropriate positions.
Once this is done, each signatory will only receive their notification email, advising them to sign the document, when the previous signer has already signed it.
Step 9 – Finish the procedure
You can include a personalized message and activate reminders for those who haven't subscribed yet. Then, just click “Send and finalize” to generate and send the document to the signatories. You will be able to track the progress of signatures as signers sign.
Step 10 – Your signers sign the document
Now, it is up to the signatories to finalize the contract. Upon receiving the link and agreeing to the terms, they will click “Subscribe” and provide basic information for identity verification. They will then sign with their finger, mouse or capacitive pen. When you click “Finish”, the document will be signed, showing the signature on the report and in other designated areas.
Frequently Asked Questions (FAQ's)
Is it valid to sign a contract using a digital signature?
In general, digital contracts can have legal validity when they meet requirements of authenticity and integrity. The text highlights digital signatures with certificates and cryptography as the most secure approach for commercial and legal transactions.
How can I create a contract with a digital signature?
The described workflow includes creating or choosing a template, inserting clauses and data, reviewing, adding signatures, sending via link/email, authenticating signatories, and finalizing with confirmation and generation of the final signed document.
Can a notary office refuse a digital signature?
There may be specific requirements regarding the form and level of signature, depending on the act. If the procedure requires a specific type of signature or verification, the signature provided may be considered insufficient.
Is a digital signature legally valid?
A digital signature tends to be valid when the process guarantees the signer's identification, document integrity, and verifiability. The post describes digital certificates, cryptography, and key verification as the technical basis.
What is the difference between an electronic signature and a digital signature?
Electronic signature is a broad term for consent in a digital environment. Digital signature is a specific type that uses cryptography, certificates, and public/private keys to allow technical validation of authorship and integrity.
See how simple it is? If you don't already know ZapSign's solution, click here right now to speak to one of ZapSign's consultants and check out our digital subscription business plans!
Getúlio Santos is the CEO of ZapSign, a lawyer, technology enthusiast, and entrepreneur.
