Digital Signature to Create a Universally Binding Contract or Agreement

Electronic signatures, or eSignatures, are a broad category of methods for signing a document. A digital signature is a type of electronic signature that uses a specific technical implementation. Digital signature providers follow the PKI (Public Key Infrastructure) protocol.

Digital signatures use a standard, accepted format, called Public Key Infrastructure (PKI), to provide the highest levels of security and universal acceptance. They are a specific signature technology implementation of electronic signature (eSignature).

eSignature Benefits

eSignature accelerates agreements, eliminates manual tasks, and makes it easy to connect with the tools and systems you’re already using.

Do business faster

Send and sign agreements securely from virtually any device. Up to 82% of agreements are completed in less than a day, and 49% in less than 15 minutes.

Be more efficient

LgalSeba eSignature eliminates manual tasks and increases convenience for our clients creating a globally binding contract.

At no cost for our clients

LegalSeba eSignature saves an average of $26 per agreement by reducing hard costs, time and improving work productivity. It comes with no cost with any agreement or contract or any project you work with us.

Lawful & court-admissible

 eSignature complies with the U.S. ESIGN Act, in Singapore, UK, Canada, Australia and UETA, as well as the EU eIDAS Regulation. We automatically generate and store a robust audit trail for every agreement to be used as a piece of evidence for future reference.

“Digital Signature” means a transformation of a message using an asymmetric cryptosystem such that a person having the initial message and the signer’s public key can accurately determine
(a) whether the transformation was created using the private key that corresponds to the signer’s public key;
(b) whether the message has been altered since the transformation was made

[1] An AES is an “advanced electronic signature”, a type of electronic signature that meets the following requirements:
(a) it is uniquely linked to the signatory;
(b) it is capable of identifying the signatory;
(c) it is created using means that are under the signatory’s sole control;
(d) it is linked to other electronic data in such a way that any alteration to the said data can be detected.

[2] A QES is a specific digital signature implementation that has met the particular specifications of a government, including using a secure signature creation device, and been certified as ‘qualified’ by either that government or a party contracted by that government.

 

Use Cases for eSignatures ?

Use cases where an SES is typically appropriate include:

Speedy HR document preparation with preapproved templates, easy update of each employee, new employee onboarding processes as well as 360 degree view of employee files.
End user agreements including sales & service terms, new retail account opening documents, invoices, shipment details, user manual, EULAs, policies
Use Cases for Qualified Signatures ?

Use cases where an AES is typically appropriate include:

Purchase, procurement and commercial agreements including invoices, trade and payment terms, certificates, NDAs, sales & distribution agreements, order acknowledgements.
Real estate lease agreements for residential and commercial purpose
Use Cases that are not appropriate for Electronic Signatures

Use cases that are specifically barred from digital or electronic processes or that include explicit requirements, such as handwritten (e.g. wet ink) signatures or formal notarial process that are not usually compatible with electronic signatures or digital transaction management.

Handwritten – power-of-attorney
Handwritten – trust deed
Handwritten – will or any other testamentary disposition
Handwritten – Any contract for the sale or conveyance of immovable property or any interest in such property

Overview

The use of electronic signatures is gaining momentum in Bangladesh, but the laws dealing with them are still being expanded. Electronic signatures are recognized under the country’s Information and Communication Technology Act 2006 (ICT Act), meaning they can be used to sign any documents that require a signature, subject to certain exceptions.

While the ICT Act is the primary legislation dealing with electronic signatures in Bangladesh, also relevant are the Information Technology (Certifying Authority) Rules 2010 (CA Rules); National Information and Communication Technology Policy 2018; and the Certification Practice Statement published by the Office of the Controller of Certifying Authorities (CCA). At this time there is no case law that deals with electronic or certificate-based digital signatures.

The ICT Act uses the terms electronic signature and digital signature interchangeably. In fact, the Bengali version of the ICT Act refers to “electronic signature” whereas the English version uses “digital signature”. According to the Act, electronic signatures (or digital signatures, in the English version) must be able to:

  1. identify the signatory;
  2. affix with the signatory uniquely;
  3. be created in a safe manner or using means under the sole control of the signatory; and
  4. be related with the attached data in such a manner that is capable of identifying any alteration made in the data thereafter.

Any type of electronic signature will be treated as ineffective if the electronic record related to it is tampered with or amended.

Special considerations

In Bangladesh, several use cases require a traditional signature. In others, such as dealing with public sector entities, the requirements will vary from case to case.

Transacting with public sector entities

Bangladesh has no fixed requirements or restrictions for using digital or electronic signatures when dealing with Government entities. However, restrictions may apply depending on the particular department’s terms of engagement. Also, under the ICT Act, the Government and its agencies have no obligation to accept documents in an electronic form.

Use cases that generally require a traditional signature

There are certain types of documents or agreements that cannot by law be signed or executed electronically in Bangladesh. Such documents generally require the person executing them to be physically present before the Government office in question, or to provide a thumb impression along with a “wet signature”. Examples of these documents may include:

  1. Will;
  2. Power of Attorney;
  3. Deed of Sale in relation to immovable property;
  4. Agreements where stamp duty is payable;
  5. Documents which need to be signed before the notary public and/or witnessed.
  6. Documents relating to legal proceedings which need to be sworn before an affidavit commissioner.

Global Use Cases for Standard Electronic Signatures (SES)

Use cases where an SES is typically appropriate include:

  • HR documents such as regular employment contracts, non-disclosure agreements, employee invention agreements, privacy notices, benefits paperwork and other new employee onboarding processes
  • commercial agreements between corporate entities including non-disclosure agreements, purchase orders, order acknowledgements, invoices, other procurement documents, sales agreements, distribution agreements, service agreements
  • consumer agreements including new retail account opening documents, sales terms, services terms, software licenses, purchase orders, order confirmations, invoices, shipment documentation, user manuals, policies
  • residential and commercial lease agreements except, in some cases, termination notices regarding residential lease agreements
  • software license agreements
  • certain intellectual property licenses and transfers such as trademark licenses and assignments
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