E-signatures: How they work and why they matter
Electronic signatures are digital versions of your signature that indicate your agreement to the contents of an online contract. They provide a hassle-free way to sign documents remotely, eliminating the need for physical paperwork and enabling more streamlined transactions.
They are legally binding for a variety of purposes and can either be typed, drawn on the screen of an electronic device, or uploaded from your desktop. This modern alternative to wet signatures has been adopted across the world, as it empowers individuals and businesses to sign documents online in a legal, secure, and efficient way.
Jordanian businesses go digital with e-signatures
As Jordan moves forward with digital transformation, e-signatures are becoming essential for businesses seeking efficiency and security in their transactions. The country's commitment to digitalisation is evident through initiatives like the Jordan Digital Transformation Strategy, which promotes the adoption of electronic services across sectors. E-signatures streamline contract execution, regulatory compliance, and document management to reduce paperwork and administrative delays. With the legal framework established by the Electronic Transactions Law No. 15 of 2015, businesses in Jordan can confidently use e-signatures to enhance operational efficiency, facilitate cross-border transactions, and comply with local regulations while embracing a more seamless and paperless future.
Zoho Sign, a digital signature solution, enhances efficiency while meeting all essential requirements, including:
- Speedier signing processes
- Improved productivity
- Signer authentication
- Security
- Remote access
- Improved user experience
- Cost-effectiveness
E-signatures: Revolutionising industries in Jordan
Major industries in Jordan where e-signatures are gaining traction:
- Banking and Finance
- Legal Services
- Retail and ecommerce
- Education
- Healthcare and Pharmaceuticals
- Government Services
- Human Resources
- Technology and IT
- Transportation and Logistics
How the law governs electronic signatures in Jordan
The Electronic Transactions Law No. 15 of 2015 establishes the legal framework for electronic signatures, outlining their types, validity, and the roles of certificates and certifying authorities.
Types of e-signatures
The law classifies electronic signatures into three categories: simple, protected, and authenticated signatures.
Electronic Signature
This includes information such as letters, numbers, codes, or symbols that are electronically added, attached, or linked to a digital record. It serves to verify the identity of the signer and confirm their intent.
Protected Electronic Signature
An Electronic Signature is classified as protected if it meets these conditions:
- It is uniquely linked to the signer.
- It can be used to identify the signer.
- The private key used to generate the signature is exclusively controlled by the signer.
- The signature is attached to the document in a way that prevents any alterations after signing.
Authenticated Electronic Signature
An Electronic Signature is considered authenticated when it meets all the conditions of a protected signature and is also linked to an electronic authentication certificate issued by:
- A licensed electronic authentication provider in Jordan
- An accredited electronic authentication provider
- A government entity authorised by the Council of Ministers, such as ministries, public institutions, or municipalities (meeting the requirements of the Telecommunications Regulatory Commission)
- The Ministry of Information and Communications Technology
- The Central Bank of Jordan (for banking and financial transactions)
Legal standing of e-signatures
Protected Electronic Signature:
An electronic record containing a Protected Electronic Signature carries the same legal weight as a traditional written contract. It can be used as evidence by the parties involved in the transaction.
Authenticated Electronic Signature:
An electronic record with an Authenticated Electronic Signature holds the same legal validity as a traditional written document. In addition to the parties involved in the transaction, third parties can also use it as legal evidence.
Other Electronic Signatures:
If an electronic record does not fall under the protected or authenticated categories, it still holds evidential value equivalent to a written contract between the transaction parties. However, in case of a dispute, the party presenting the electronic record must prove its validity.
Official documents:
Government-issued or authenticated official documents can be legally recognised in electronic form, provided they contain an Authenticated Electronic Signature.
Use cases for e-signatures
According to Article 3 of the Electronic Transactions Law (ETL), Electronic Signatures can be legally used in transactions conducted electronically, including lease agreements.
Additionally, based on third-party sources, Electronic Signatures are commonly used for:
- Vendor and supplier agreements
- Sales contracts
- Employee onboarding documents
- Various other legal documents, except those specifically restricted under Article 3(2) of the ETL
Where e-signatures cannot be used
As per Article 3(2) of the ETL, Electronic Signatures are not permitted in the following situations:
- Creating or modifying a will
- Establishing a Waqf or changing its terms
- Transactions related to movable and immovable properties that necessitate legal registration, including power of attorney, title deeds, and real rights (excluding lease agreements)
- Authorizations and matters concerning civil status
- Notifications regarding the discontinuation or revocation of essential services, such as water, electricity, health insurance, and life insurance
- Court-related matters, including filings, legal notices, and judicial decisions
- Securities transactions, unless specifically allowed under separate regulations issued by the relevant authorities in accordance with the Securities Law
Digital signature certificate
An Electronic Authentication Certificate is issued by an accredited electronic authentication provider to verify that a given Electronic Signature belongs to a specific individual. This process follows officially approved authentication standards, ensuring the validity and integrity of digital transactions.
Certifying authority
An electronic authentication provider refers to an entity that is either licensed or accredited by the Telecommunications Regulatory Commission (TRC) or legally authorised to issue authentication certificates. These providers are also responsible for offering services related to electronic signatures and transactions.
Additionally, the Ministry of Information and Communications Technology (MoICT) oversees and manages the root certificate authentication systems to ensure secure and reliable digital transactions.
Digital confidence in Jordan with Zoho Sign
Designed for Jordanian businesses, Zoho Sign enhances efficiency, ensures document security, and accelerates growth, all while keeping you ahead in the digital race.
Identification and reliability:
Zoho Sign employs strong authentication techniques, such as OTP authentication and PKI-based digital signatures using digital certificates, to ensure the e-signature identifies the signatory.
Control over the data being signed:
The signatory is allowed to review the document before signing and may reject the document if necessary.
Enhanced security:
Zoho Sign employs robust encryption protocols, such as the military grade AES-256 encryption at rest and the TLS/SSL protocol in transit, to ensure that the data transmission between the signing platform and the data being signed is secure. This prevents documents and data exposure in the case of data breaches.
Detectable alterations:
Zoho Sign ensures any alterations to the electronic signature or the document to which the signature is affixed are detectable through an elaborate audit trail of all activities during the signing process. This audit trail comprises critical information, such as the identity of the signatory, the timestamp of the signature, and changes made to the document.
Document timestamping
A digital timestamp is a digitally signed notation that is appended to the electronic data, digital signature, or certificate that indicates that certain digital data exists at a certain point in time. This process securely binds the date and time to the document, ensuring its authenticity and integrity.
Zoho Sign partners with recognised timestamping authorities, GlobalSign and Seiko, to provide trusted digital timestamps for electronic transactions. These timestamps validate the authenticity of e-signatures and verify that the signed document existed in the given form at the time of signing and remains unaltered, adding a robust layer of security to the signing process. By making signatures tamper-proof, digital timestamps enhance the reliability of signed documents for both legal and commercial purposes.
Key takeaway
E-signatures are paving the way for a smarter, faster, and more secure approach to document management. Businesses can streamline workflows, cut operational costs, and strengthen document security while adhering to Jordan's Electronic Transactions Law No. 15 of 2015. E-signatures also empower Jordanian companies to collaborate seamlessly across borders, enabling global partnerships and remote work with ease. Embrace this digital shift and discover how e-signatures can elevate your business in Jordan’s growing digital economy.
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Disclaimer
The information provided in this document is for general informational purposes only and shall not be construed as legal, regulatory, or any other form of professional advice. Zoho Sign disclaims any liability for any error in the information provided herein. We recommend that you consult your legal counsel for any questions that you may have in this regard.