In an increasingly digitalized business world, digital contracts are becoming increasingly important. They enable contracts to be concluded quickly, securely and paperless, from anywhere and with full legal certainty. Today, contracts can be conveniently created, negotiated and signed online without the need to send or archive physical documents. They also contribute to sustainability by eliminating
paper-based processes.
Electronic signatures are a central component of digital contracts. It replaces the handwritten signature, confirms the identity of the signatory and ensures that content has not been subsequently altered. It thus guarantees not only the authenticity and integrity, but also the legal validity of the document, provided that it meets the legal requirements, but only if the law expressly provides for this.
Digital Signature of Contracts
The digital signature is a central component of modern contract processes. It replaces the traditional signature on paper and enables contracts to be signed quickly, securely and in a legally binding manner, regardless of location. This not only saves companies time and money, but also makes their internal processes much more efficient.
Digital signatures can be provided on a laptop, tablet or smartphone using a click, TAN code, biometric ID or certified signature. The identity of the signer is clearly verified, and the integrity of the document is securely protected. Other advantages of digital signatures include simple scalability and a convenient workflow for multiple signatures simultaneously.
Whether for employment contracts, NDAs, offers or framework agreements, digital signatures are now permitted and established in many areas. Depending on the area of application and legal requirements, a simple, advanced or qualified electronic signature is used.
For a digitally signed contract to be legally valid, the form of signature used must match the type of transaction and the legal requirements.
When signing contracts digitally, it is important to distinguish between legal validity and probative force. These terms are often confused but have distinct meanings, as shown in the table below.
| Term | Definition | Significance in the context of digital contracts | Example |
| Legal validity | A contract or signature meets the legal requirements to be effective. | The contract is legally binding and recognized as valid in the legal sense. | An employment contract with a qualified electronic signature is legally valid. |
| Probative Value | A measure of how well the authenticity and content of a document can be proven in court. | The contract can serve as evidence without formal legal validity. | An agreement accepted by e-mail can be considered proof but not legally valid. |
In digital form, a qualified electronic signature holds the same legal value as a handwritten signature.
What Types of Electronic Signatures are There?
According to the eIDAS Regulation, a distinction is made between three types of electronic signatures:
Each of these electronic signatures offers a different level of security and is used depending on the law and the area of application.
The Areas of Application of Simple, Advanced and Qualified Electronic Signatures
As mentioned above, digital signatures can be divided into three security levels, which vary depending on the legal requirements and area of application. Here is an overview:
1. Simple Electronic Signature (SES)
The SES is the most basic form of digital signature, e.g. a scanned name, a click on “Agree” or a signature with the mouse. It does not require any special identity verification.
Typical application examples:
In simple business cases, the SES is often sufficient and legally valid.
2. Advanced Electronic Signature (AES)
The AES is forgery-proof, clearly assigned to a person and recognizes any subsequent changes to the document. Identity is checked using
two-factor authentication, for example.
Typical application examples:
It provides a higher level of security and is suitable for sensitive business transactions.
3. Qualified Electronic Signature (QES)
The QES is the only form of signature which, according to eIDAS, is equivalent to a handwritten signature. It requires a qualified certificate and an identity check via a certified provider.
Mandatory in the following cases:
The QES is the only form of signature which, according to eIDAS, is equivalent to a handwritten signature. It requires a qualified certificate and an identity check via a certified provider. The qualified signature therefore offers the highest level of security and legal validity.
Only the QES fulfills statutory written form requirements and is therefore mandatory for certain types of contracts.
Contract Lifecycle Management and Electronic Signatures
A Contract Lifecycle Management (CLM) system is a centralized solution that digitally maps the entire contract process, from contract creation and negotiation to final signing and archiving. With integrated electronic signatures, CLMs make contracts much more efficient.
By automating the signature process, a CLM system reduces manual errors, speeds up approvals and enables teams to sign digitally without media disruptions. This allows companies to keep track of deadlines, versions and responsibilities at all times. This increases transparency and compliance, which is particularly important for complex contract structures.
Digital Signatures with DiliTrust
DiliTrust offers a modern, user-friendly CLM solution designed for the demands of digital contracting. The platform integrates powerful digital signatures that meet the highest security and legal standards. In addition to contract management, the DiliTrust portfolio also includes solutions for board, entity and matter management, with the aim of holistically digitizing and networking legal departments.
