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Validity of Signatures and Exemption from Witnesses in Electronically Signed Contracts

By 17/07/2023July 19th, 2023No Comments

Law No. 14,620, enacted on July 13, 2023, among other provisions, introduced an essential innovation regarding extrajudicial enforceable instruments. According to the new paragraph 4 of Article 784 of the Code of Civil Procedure: “In enforceable instruments constituted or certified electronically, any form of electronic signature provided for by law is admitted, and the signature of witnesses is exempted when its integrity is verified by a signature provider.”

This provision reinforces the recognition of the validity and effectiveness of electronic signatures, providing greater flexibility to the parties involved, who can choose the form of electronic signature that best suits their needs and preferences. Additionally, the new law exempts the requirement of witness signatures in cases where a signature provider verifies the document’s integrity. This simplifies procedures by eliminating the need for witnesses when the security and integrity of the document can be verified through a trusted electronic signature provider.

These changes have a significant impact on the legal and business world. The ratification and expansion of electronic signatures as a valid means of expressing intent contribute to the modernization and agility in entering into new business transactions, providing greater efficiency and cost reduction for the parties involved.

By dispensing with the need for witness signatures in some instances, the new legislation keeps up with technological advancements, adapting to the demands of the digital environment. This brings practical benefits, particularly in electronic transactions where the requirement of witnesses could be operationally challenging.