The legal validity of electronic signatures and international nuances

Electronically signed documents have become a part of everyday business practice – they are convenient, fast, and modern. However, not every digital signature automatically means that a document has legal force. As BDO Latvia Partner Viesturs Briežkalns points out, in practice situations still occur where documents are signed electronically but do not meet the legal requirements for a secure electronic signature.

The article notes that Latvia has clear legal regulations defining the validity and application of electronic signatures, but the situation may differ abroad. Especially in international transactions, companies should be aware that different countries apply different rules on what type of electronic signature is considered valid.

“In Latvia, there are legal acts that define the parameters of electronic documents and how they must be signed in order to have legal force. However, foreign clients should take into account that they may not have a Latvian secure electronic signature, which can create additional challenges,” explains V. Briežkalns.

Briežkalns also emphasizes that it is important for business partners to agree on how documents will be signed to avoid misunderstandings and ensure legal certainty. He notes that foreign partners often prefer physical meetings and in-person signing of documents, especially when starting cooperation.

The article also highlights cases where electronically signed documents are not recognized as legally binding abroad, as well as situations where banks or companies wish to verify a client’s identity in person, even if the document has already been signed electronically.

For a more detailed explanation and practical examples, see the 14 October issue of the “Dienas Bizness” magazine.