Legality of eSignatures in Hungary

Background
What is an electronic signature
Overview of electronic signatures regulatory framework in Hungary
Summary
The scope and limitations of electronic signature transactions
Cases where the use of a qualified electronic signature is required
Summary of the scope and limitations of electronic signature transactions
How does BoldSign help

Background

Electronic signatures are revolutionizing document verification, making the process much more efficient in Hungary and worldwide. These digital solutions enable quick and eco-friendly signing processes, reducing paper use and facilitating faster transactions. However, it’s crucial to understand the key considerations when adopting electronic signatures in Hungary.

It is wise to select an electronic signature provider that complies with both Hungarian legislation (Act on electronic administration and trust services¹) and the European Union’s Regulation 910/2014² to ensure that electronic signatures have the same legal standing as traditional handwritten signatures for transactions within Hungary. Nevertheless, certain documents may require a handwritten signature, and regional laws can differ, so consulting with a legal expert is recommended.

Security is of the utmost importance. Providers of electronic signatures must incorporate robust security features, such as data encryption, user authentication, and audit trails, to prevent unauthorized access and to certify the integrity of the document. BoldSign offers these security measures to satisfy compliance requirements and safety concerns.

While electronic signatures are increasingly accepted and offer tremendous benefits, it’s important to consider legal compliance, prioritize security, and choose an intuitive service to integrate them effectively into operations within Hungary.

What is an electronic signature

In the context of Hungarian regulations on electronic signatures, they are defined as electronic data attached to or logically associated with other electronic data used by the signatories to sign a document. These signatures are legally effective on most documents as long as they can be distinctly associated with the person signing, and there is evidence to confirm their validity, ensuring that the document remains unaltered and genuine. Furthermore, the signatory must demonstrate a clear intention to sign, signifying their Agreement to the terms specified in the document. When these conditions are met, electronic signatures are given the same legal validity as manual signatures.

Overview of electronic signatures regulatory framework in Hungary

As technology rapidly progresses, there is an increasing demand for contemporary methods to authenticate signatures on documents. This has led to considerable interest in the adoption of electronic signatures. Electronic signatures are considered just as valid as traditional wet-ink signatures; however, their use is subject to specific regulations spelled out in:

Act CCXXII of 2015 on the general rules on electronic administration and trust services.
Regulation (E.U) No. 910/2014

The regulations categorize eSignatures into:

Standard electronic signature
Advanced electronic signatures
Qualified electronic signatures

A Standard electronic signature is any data or document in electronic form that is attached to or logically associated with another electronic data and serves as an authentication method.

An advanced electronic signature is an electronic signature that meets the following standards³:

It is uniquely linked to the signer.
It is able to identify the signers.
It is developed through means that the signers can maintain under their explicit control.
It is linked to the data to detect any post-signature changes/alterations.

Uniquely linked to the signer

An advanced electronic signature must be securely linked to the individual using it, ensuring that it is created through means exclusively available to the signer, such as a private key and private information, to confirm their identity.

Use and incorporation remaining in the signers’ sole control

The individual using the advanced electronic signature should maintain exclusive control over the signature creation tools. In most cases, this involves overseeing a set of cryptographic keys or utilizing two-factor authentication, where the signer is the sole possessor of the private key, ensuring the signature cannot be duplicated fraudulently.

Identify the signatory

The method employed to generate the signature needs to have the ability to authenticate the identity of the individual signing. This could involve the application of a biometric signature, a Personal Identification Number (PIN), an email address, or a company registration number.

Track down alterations made after signing

Maintaining the integrity of the signed document is crucial. Any alterations to the document post signature need to be detectable. Typically, this is achieved using audit trails. The audit trail logs the signer’s I.P. address, time stamps of key signing events, and locations, providing proof of the signer’s identity, timing, and location.

A Qualified Electronic Signature⁴ is an advanced electronic signature created with a secure signature-creation device and attested by a qualified certificate. Article 32⁵ sets out a validation set of standards to be met by the one for a qualified electronic Signature. These are:

Statutory compliant certificate at the time of signing.
A qualified trust service provider issued a valid certificate when signing.
Signature validation data corresponds to the data provided to the relying party.
The unique set of data representing the signatory in the certificate was correctly provided to the relying party.
The use of any pseudonym is clearly indicated to the relying party if a pseudonym was used at the time of signing.
The electronic signature is of a qualified electronic signature creation device.
The integrity of the signed data has not been compromised.
Meets validity standards of an advanced eSignature.

Summary

Under Act CCXXII of 2015 on the general rules on electronic administration and trust services and
Regulation (E.U) No. 910/2014

Type of signature

Unique features

Legal validity

Standard Electronic Signature

No unique feature other than being data in electronic form.

Validity is dependent on the evidentiary weight.

Advanced Electronic Signature

Uniquely linked to the signer.
Capable of identifying the signatories.
Developed using means that the signatory can maintain his control.
Linked to the data it relates to so that any subsequent change to the data is detectable.

Validity is dependent on evidentiary weight across jurisdictions.

Qualified Electronic Signature

Certificate compliant with laws provided at signing.
Trust service provider issued a valid certificate at signing.
Signature validation matches the data given to the recipient.
The signatory's unique data is accurately given to the recipient.
Any pseudonym used is disclosed to the recipient.
Signature made with a qualified electronic signature device.
Meets all features of Advanced eSignature.

Deemed valid in jurisdictions across the E.U. Equivalent to a handwritten signature.

Type of Signature	Unique Features	Legal Validity
Standard Electronic Signature	No unique feature other than being data in electronic form.	Validity is dependent on the evidentiary weight.
Advanced Electronic Signature	Uniquely linked to the signer. Capable of identifying the signatories. Developed using means that the signatory can maintain his control. Linked to the data it relates to so that any subsequent change to the data is detectable.	Validity is dependent on evidentiary weight across jurisdictions.
Qualified Electronic Signature	Certificate compliant with laws provided at signing. Trust service provider issued a valid certificate at signing. Signature validation matches the data given to the recipient. The signatory's unique data is accurately given to the recipient. Any pseudonym used is disclosed to the recipient. Signature made with a qualified electronic signature device. Meets all features of Advanced eSignature.	Deemed valid in jurisdictions across the E.U. Equivalent to a handwritten signature.

The scope and limitations of electronic signature transactions

Electronic signature use is not legally recognized for all document types. Some transactions are acceptable for eSignatures, while others are not. Below is a brief analysis and a summary table of these transactions.

Documents that can be signed

Electronic signatures can be employed to affix signatures and provide countersignatures on a diverse array of documents, such as:

Legal Opinions
Offer letters
Memoranda & Internal
correspondences
Non-disclosure agreements
Purchase orders
HR
Procurement
Employee onboarding
End user agreements, etc.

Cases where the use of a qualified electronic signature is required

Under Article 25 of the eIDAS⁶, Qualified electronic signatures are deemed to bear the same legal validity granted to wet-ink signatures as such the following (non-exhaustive list) can be signed in either wet ink signature or qualified electronic signature:

Administrative transactions⁷
Registration for Electronic identification⁸
Verification of identity before and by trust service providers⁹
Juridical act of more than one pages¹⁰

Exempted transactions

Under the Hungarian Act on electronic signatures, under section 99¹¹, transactions that cannot be concluded in electronic signature are contracts governed by family law or inheritance law.

Nuptials
Wills
Codicils
Testamentary trust documents

Summary of the scope and limitations of electronic signature transactions

Permissible Transactions

Exempted transactions

Any type of Electronic Signature

Legal Opinions
Offer letters
Memoranda & Internal correspondences
Non-Disclosure Agreements
Purchase orders
HR
Procurement
Employee onboarding
End User Agreements, etc.

Qualified electronic signatures

Administrative transactions
Registration for Electronic identification
Verification of identity before and by trust service providers
Juridical act of more than one pages.

Contracts governed by family law or inheritance law.
- Nuptials
- Wills
- Codicils
- Testamentary trust documents
- Property trust documents

Permissible Transactions		Exempted transactions
Any type of Electronic Signature	Qualified electronic signatures	Contracts governed by family law or inheritance law. Nuptials Wills Codicils Testamentary trust documents Property trust documents
Legal Opinions Offer letters Memoranda & Internal correspondences Non-Disclosure Agreements Purchase orders HR Procurement Employee onboarding End User Agreements, etc.	Administrative transactions Registration for Electronic identification Verification of identity before and by trust service providers Juridical act of more than one pages.

To guarantee the authenticity of an electronic signature, it is recommended to adhere to the following best practices while also complying with all relevant legal obligations:

Verify the identity of the individual signing and, in business dealings, confirm that the individual is authorized to represent the company in signing the document.
Obtain explicit consent from the person signing, which should be recorded in the contract or a separate legal agreement, to establish their Agreement to use the chosen electronic signature for the document.
Ensure the document is safeguarded against any alterations post-application of the electronic signature.
Maintain a detailed record of the signing process that includes every action the signer takes.

How does BoldSign help

The following elements of compliance available within BoldSign can be used to comply with Hungarian eSignature laws:

Disclaimer: The information on this page is intended to help businesses understand the legal framework of electronic signatures for this particular country.

Secure and unique signing link: A secure and unique link to sign a document is sent directly to the signer’s email address. This helps ensure that the document is only accessed by the intended signer and cannot be tampered with.
Password protection: Senders can specify a password that needs to be entered before viewing and signing a document. This adds a layer of security to the signing process.
Audit trail: The IP address of the signer and timestamps for all significant events in the signing process are recorded in an audit trail. This provides a record of who signed the document, when, and where.
Digital signature: The final document is digitally signed with an AATL-compliant certificate. This ensures that the document cannot be tampered with without invalidating the signature.
Consent: Signers are asked to confirm their intent to sign electronically and informed that they could opt out. This helps ensure that the signer is aware of the implications of signing electronically and has consented to do so.
Custom terms: Getting your signers to agree to a custom set of terms. This can be useful to ensure additional security or that the signer understands the terms of the document.
QES compliance: BoldSign offers fully compliant qualified electronic signatures (QES) that are simple, secure, and legally binding across the EU. QES guarantees that your essential documents are protected with the highest level of e-signature security, giving you peace of mind in your digital transactions. Using BoldSign, you can confidently manage your important documents while ensuring compliance with EU regulations.

Syncfusion makes no warranties of any kind, including but not limited to respect to the information or the product, whether express, implied, statutory, or otherwise. To the maximum extent permitted by law, Syncfusion disclaims all conditions, representations, and warranties, whether express, implied, or statutory, with respect to this information without limitation any implied warranty of merchantability, fitness for a particular purpose, accuracy, or currentness of this information.

However, Syncfusion, its officers, directors, stockholders, affiliates, attorneys, accountants, employees, or agents cannot provide legal advice. You should consult your personal attorney regarding your specific legal questions. Laws and regulations change frequently, and this information may not be current or accurate. To the maximum extent permitted by law, Syncfusion provides this material on an “as-is” basis. Syncfusion disclaims and makes no representation or warranty of any kind with respect to this material, express, implied, or statutory, including representations, guarantees, or warranties of merchantability, fitness for a particular purpose, or accuracy.

Syncfusion nor their officers, directors, stockholders, employees, affiliates, attorneys, accountants, or agents shall be liable for indemnification, nor does this create an express or implied, contractual or statutory, equitable or otherwise, under this Agreement. The officers, directors, stockholders, affiliates, attorneys, accountants, or agents will not have any liability in any form.

¹ Act CCXXII of 2015 on electronic administration and trust services [https://njt.hu/jogszabaly/en/2015-222-00-00]
² Euro Lex “Regulation 910/2014” [https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32014R0910]; Accessed on 6th March 2024
³ Act CCXXII of 2015, 1(22) [https://njt.hu/jogszabaly/en/2015-222-00-00] as read with Regulation (E.U) 910/2014 Art.3(11)
⁴ Act CCXXII of 2015, S.1 (38) as read with Regulation 910/2014 S. 3(12)
⁵ Electronic Identification and Trust Services Regulation 910/2014. Art. 32
⁶ Regulation (Eu) No 910/2014 of the European Parliament and of the Council, S. 4, Art. 25 [ https://eur-lex.europa.eu/eli/reg/2014/910/oj]
⁷ Act CCXXII of 2015, S 25 (f) [https://njt.hu/jogszabaly/en/2015-222-00-00]
⁸ Ibid S.32 (3)
⁹ Ibid, S. 88, 2
¹⁰ Act CCXXII of 2015, S. 103 (4) [https://njt.hu/jogszabaly/en/2015-222-00-00]
¹¹ Act CCXXII of 2015, S. 99 [https://njt.hu/jogszabaly/en/2015-222-00-00]

Enterprise-Ready E-Signatures

Built to scale with your business

Close deals faster, cut costs, and stay compliant. From startups to global enterprises, thousands trust BoldSign to simplify document signing.

0 +

Years in business

0 +

Customers

0 +

Countries

0 +

Built-in features

Testimonials

Why our customers love us

The true measure of our impact lies in the stories shared by our valued partners.

Google Integration, 25 free sends, dashboard, Signature font options, App is very responsive / fast, Emails between sender and signer are good, Audit trail is very helpful, No account needed for signer is great, Mobile experience is good for signer.

Jeremy Kadlec

Edgewood Solutions

Switch to BoldSign already! It's intuitive to use and affordable for small businesses. I never have to worry about the status of a document because with BoldSign I know. Plus, they let you program the frequency of reminders signatories receive. I'm so glad to have found it!

Sarah Dillard

Kaleidoscope

We’re using BoldSign successfully in our b2b SaaS platform - as it’s embedded to allow seasonal farm workers and their agribusiness employers to e-sign their employment onboarding documents for the first time. It’s part of the total solution saving the workers and HR managers 50% more time compared to their traditional pen/paper manual process.

Scott Prince

Croft

Sign up for your free trial today!

30-day free trial
No credit card required

30-day free trial

No credit card required