Legality of eSignatures in Lithuania
Background
Electronic signatures have revolutionized the way we authenticate documents, making finalizing agreements more efficient in Lithuania and worldwide. These digital tools enable quick and eco-friendly signing, reducing paper use and accelerating the pace of business transactions. However, understanding the critical considerations for implementing electronic signatures within Lithuania is vital.
Entities and individuals must select an electronic signature solution that adheres to Lithuanian laws, particularly the Law on Electronic Signature (2000). This legislation recognizes electronic signatures’ legal standing as equivalent to traditional pen-and-paper signatures. Yet, it’s important to remember that some documents may still necessitate a physical signature, and legal stipulations may differ across regions; thus, consulting with a legal expert is advisable.
The security of the electronic signature process is essential. The chosen service must provide vital security features, such as encryption, authentication measures, and detailed audit logs, to prevent unauthorized use and ensure document integrity. Services like BoldSign have been crafted to offer these security guarantees and meet compliance and security requirements.
In conclusion, while electronic signatures bring numerous benefits and enjoy broad acceptance, it is crucial to follow legal guidelines, prioritize security, and select an intuitive platform for their effective use in Lithuania.
What is an electronic signature?
As defined by the Law on Electronic Signature (2000), an electronic signature is a set of electronic data that is attached to, incorporated with, or logically associated with other electronic data. It is used to verify the purported author’s identity. Such signatures are legally binding. For most documents, the signatures must be securely linked to the signatory and protected against tampering or fraud. Meeting these requirements ensures that electronic signatures hold the same legal weight as handwritten ones.
Overview of electronic signatures in Lithuania
Electronic signatures are considered just as valid as traditional wet-ink signatures; however, their use is subject to specific regulations spelt out in:
- Law on Electronic Signature (2000)
The regulation categorizes the signatures into two categories:
- Standard Electronic Signature
- Secure Electronic Signatures
A standard electronic signature, as defined in Article 2, Clause 4, refers to data that is either incorporated, linked, or logically connected with additional data to verify the authenticity of that additional data and establish the identity of the individual signing.
Secure-electronic-signature, on the other hand (under Art. 2.5.), means signature based on a qualified certificate, which meets additional requirements outlined in the statute:
- It is uniquely linked to the signatory.
- It is capable of identifying the signatory.
- It is created using a means that the signatory can maintain under his sole control.
- It is linked to the data to which it relates so that any subsequent change in the data is detectable.
To be uniquely linked to a person
A secure electronic signature must be uniquely connected to the person using it. The signature must be uniquely made with methods that only the signer can access, like a private key and confidential info, to verify their identity.
The use and incorporation remain in their sole control
The person using the secure electronic signature must have sole control over the means of creating the signature. Typically, this requires managing a key pair or two-factor authentication, with the signer exclusively holding the private key to prevent unauthorized signature forgery.
Able to identify the person using the technological process
The process used to create the signature must be capable of identifying the person signing. This may include using a biometric signature, Personal Identification Number (PIN), email address, or company registration number.
It is easy to track down any alterations made after signing
It is essential to preserve the authenticity of the signed document. Modifications made to the document post-signature should be identifiable. This is commonly accomplished through an audit trail. Audit trails record the signer’s IP address, timestamps of key signing events, and location, providing proof of identity, timing, and place of signature.
Summary analysis
Law on Electronic Signature (2000)
Type of signature
Unique features
Validity standard
Standard Electronic Signature
N/A
Based on the evidentiary value
Secure Electronic Signatures
- It is uniquely linked to the signatory.
- Capable of identifying the signatory.
- It was developed using a means that the signatory can maintain under his sole control.
- Linked to the data to which it relates so that any subsequent change in the data is detectable.
- Valid unless the contrary is proven.
| Type of signature | Unique features | Validity standard |
|---|---|---|
| Standard Electronic Signature | N/A | Based on the evidentiary value |
| Secure Electronic Signatures |
|
|
The scope of limitations as to the use
The validity of electronic signatures depends on the type of document, rendering them appropriate for certain transactions while unsuitable for others. Below is an analysis and a table summarizing 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:
- Human Resources
- Procurement
- Non-Disclosure Agreements (assuming they are contracts, not formal deeds)
- Public petitions
- Internal correspondences
- End-user licences
- Educational Field
- Offer letters
Exemptions
The legislation does not explicitly specify which types of transactions are prohibited from being finalized using an electronic signature. Nonetheless, in accordance with the Lithuanian Civil Code, it is advisable to exercise caution in the following areas which are exempted:
- Contracts of marriage (Art.1.74)
- Notaries (under Art. 1.74)
- Loan Agreements exceeding 3,000 euros in sum. (Art. 6.871)
- Bills of exchange for sums exceeding 3000 euros
- Official wills (Art. 5.28)
- Contracts of gift providing gift exceeding 14.000 Euro in sum (Art. 6.469)
Summary scope of limitations
Permissible transactions
Exempted transactions
- Human Resources
- Procurement
- Non-Disclosure Agreements (assuming they are contracts, not formal deeds) Internal correspondences
- End-user licences
- Educational Field
- Offer letters
- Contracts of marriage
- Notaries
- Employment termination notices.
- Loan Agreements exceeding 3,000 euros in sum.
- Bills of exchange for sums exceeding 3000 euros.
- Official wills
- Contracts of gift providing gift exceeding 14.000 Euro in sum.
| Permissible transactions | Exempted transactions |
|---|---|
|
|
To guarantee the legitimacy of an electronic signature, it is recommended to adhere to the following best practices while also ensuring compliance with all relevant legal obligations:
- Verify the identity of the person signing and, in cases involving companies, confirm that the individual is authorized to commit the company with their signature legally.
- Obtain explicit consent from the person signing, which can be included in the contract itself or provided through a separate consent document, acknowledging their intent to use the chosen electronic signature method for the document.
- Safeguard the document against any alterations post-application of the electronic signature.
- Maintain a detailed record of the entire signing process, documenting each action performed by the person executing the signature.
How does BoldSign help?
The following elements of compliance available within BoldSign can be used to comply with Lithuanian eSignature laws:
- 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, along with timestamps for all major events in the signing process, are recorded in an audit trail. This provides a record of who signed the document when they signed it, and from where they signed it.
- 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: There is an option to get your signers to agree to a custom set of terms. This can be useful for adding additional security or ensuring 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.
Disclaimer: Information on this page is intended to help businesses understand the legal framework of electronic signatures for this particular country.
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 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.
Syncfusion nor their officers, directors, stockholders, employees, affiliates, attorneys, accountants or agents shall be entitled to indemnification, express or implied, contractual or statutory, equitable or otherwise, under this agreement.
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