Legality of eSignatures in Nicaragua

Background

The move toward digital document authentication is reshaping how transactions are carried out in Nicaragua and across the globe. As more organizations move away from traditional paper-based processes, electronic signatures are gaining momentum as an efficient and environmentally conscious alternative that helps streamline and accelerate the completion of various transactions.

For successful adoption in Nicaragua, it is vital to select an electronic signature tool that is compliant with the nation’s legal requirements, especially Law No. 729, the Electronic Signature Law.¹ The law provides that certified electronic signatures have the same legal value as handwritten signatures and are admissible as evidence in judicial and administrative proceedings in Nicaragua.² Despite the progressive acceptance, it's essential to recognize that some documents may still need a physical signature, and seeking legal consultation is advisable to navigate variable regional laws.³

The importance of security surrounding electronic signature platforms cannot be overstated. Services must integrate robust protection features such as data encryption, signer identity verification, and audit trails to deter unauthorized access and guarantee document authenticity. For instance, BoldSign offers these imperative security features and complies with legal and security protocols.

Nicaraguan enterprises must emphasize legal conformity, elevate security measures, and choose user-friendly platforms for integrating electronic signatures into their business frameworks. This approach boosts productivity and ensures the protection of their business exchanges.

Overview of the eSignature regulations

The use and application of electronic signatures in Nicaragua are regulated by:

• Law No. 729, Electronic Signature Law
• Executive Decree No. 57-2011 Regulating Law No. 729, Electronic Signature Law⁴

The laws recognize the legal validity and effectiveness of electronic signatures and digital certificates. Furthermore, certified electronic signatures are granted the same legal value as handwritten signatures.⁵ It grants all individuals the freedom to execute their contracts upon agreement by the contracting parties electronically.

The regulation divides electronic signatures into:⁶

1. Standard electronic signatures
2. Certified electronic signatures

A standard electronic signature is any data, including a sound, symbol, or process, executed or adopted to identify a person and indicate that person's approval or intention regarding the information contained in a data message and which is attached to or logically associated with that data message.

A certified electronic signature is designed so that, together with a security procedure, it can be verified that the signature is:⁷

• Uniquely linked to the signer
• Capable of identifying the signatories
• Created using means that the signer can keep their sole control
• Linked to the data it relates to so that any subsequent change to the data is detectable

Uniquely linked to the signer

An advanced electronic signature must be uniquely connected to the person using it. The signature must be created with methods only the signer can access, like a private key and confidential information, to verify their identity.

Use and incorporation remain in their sole control

The person using the advanced 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 signature forgery.

Identify the signatories

The process used to create the signature must be capable of identifying the person signing. This may include using a biometric signature, a personal identification number (PIN), an email address, or a company registration number.

Track down any alterations made after signing

Preserving the authenticity of the signed document is essential. 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 signature place.

A certified electronic signature can be validly used to complete electronic contracts in place of a handwritten signature in all contracts entered into by State institutions, decentralized, and autonomous entities. This also extends to transactions done with the involvement of such institutions or entities.⁸

The validity of a certified electronic signature shall be dependent on the following:⁹

• The creation of data corresponding exclusively to the holder.
• The recognized certificate on which it is based is issued by an accredited certification service provider.
• The secure signature creation device is provided by an accredited certification service provider.

Summary analysis

Scope and limitations of eSignature transactions

The use of electronic signatures is not legally recognized for all document types. Some transactions are appropriate 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 and internal correspondences
• Non-disclosure agreements
• Purchase orders
• HR
• Procurement
• Employee onboarding, etc.

Unique consideration

A certified electronic signature can be used instead of a handwritten signature in all contracts between State institutions, decentralized entities, and autonomous entities.¹⁰

Exemptions

In limiting the scope of use of electronic signatures, the Act exempts transactions from the following regulations:¹¹

• Legal acts of family law
• Personal acts in general
• Provisions due to death
• Those acts that must be carried out under the formalities required by the relevant Law

Summary list

How does BoldSign help

The following elements of compliance available within BoldSign can be used to comply with Nicaraguan 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 ensures 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 another 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 are informed that they could opt out. This ensures that the signer is aware of the implications of signing electronically and has given their consent.
• Custom terms: Get your signers to agree to a custom set of terms. This can be useful to ensure additional security and that the signer understands the terms of the document.
• QES compliance: BoldSign offers qualified electronic signatures (QES) that verify the signer's identity and help ensure documents are legally binding. These signatures provide the highest level of e-signature security, protecting important documents from unauthorized changes. For cross-border transactions involving Nicaragua, BoldSign helps users manage and sign documents electronically while supporting compliance with applicable Nicaraguan legal requirements.

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

However, Syncfusion’s 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 are subject to frequent changes, and the 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, warranties of merchantability, fitness for a particular purpose, or accuracy.

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