Electronic Signatures: A Simplified Guide
Electronic signatures have become a go-to solution for signing documents quickly and securely, especially highlighted during the pandemic's remote working surge. Ross Holmes Virtual Lawyers Limited is here to demystify the legalities surrounding electronic signatures in New Zealand.
The Legal Backdrop
In New Zealand, the use of electronic signatures is officially permitted by the Contract and Commercial Law Act 2017 (CCLA). This Act makes it clear: electronic signatures are just as valid as traditional pen-and-paper signatures for most documents, provided everyone involved agrees to this method.
When to Use Electronic Signatures
You can use electronic signatures for a wide range of documents, including:
Property sale and purchase agreements
Business contracts
Lease documents
Company resolutions (for directors, shareholders, and trustees)
When Not to Use Electronic Signatures
However, there are certain documents where electronic signatures aren't permitted by the CCLA, such as:
Affidavits and statutory declarations
Any document that must be handed over in person, unless the receiver is okay with an electronic version
Documents that need to be sworn under oath
Powers of attorney or or enduring powers of attorney
Wills and related documents.
Special Notes on Deeds
Deeds can be signed electronically too, but there are extra steps to follow, especially concerning how and in the presence of whom these signatures are made. For example, if a company has one director, that director must sign in front of a witness, who then signs it too. Companies with two directors require both to sign without a witness unless the company has a constitution that permits one director to sign.
The Authenticity of Electronically Signed Documents
A document signed electronically is considered original if the electronic process can prevent any after-the-fact changes, similar to paper documents.
At Ross Holmes Virtual Lawyers Limited, we're passionate about integrating modern technology with legal best practices. This guide aims to make the concept of electronic signatures clearer for you, If you have any questions or need further assistance with electronic signatures or other legal matters, our team is always ready to help.
