Is an electronic signature legal in Canada?

Types of electronic signature recognised

PIPEDA defines an electronic signature as a signature consisting of one or more letters, characters, numbers or other symbols in digital form incorporated in, attached to or associated with an electronic document. Provincial acts use similarly broad definitions, so typed, drawn and click-to-sign signatures are recognised.

PIPEDA also defines a "secure electronic signature", a digital-signature-based method set out in the Secure Electronic Signature Regulations (SOR/2005-30). It is required only for specific federal purposes, such as certain original documents or statements declaring truth under federal laws, not for ordinary private contracts.

Which law applies to your contract

Most private contracts are governed by provincial law, so the relevant provincial electronic commerce act matters more than PIPEDA Part 2, which applies to federal laws and federal bodies. The provincial acts are broadly consistent, but each has its own list of excluded documents.

Provincial acts generally require the parties' consent to use electronic documents, which can be inferred from conduct, and that the electronic signature be reliable for the purpose and associated with the document. Governments and public bodies can set their own format requirements.

Evidence and admissibility

The Canada Evidence Act and provincial evidence acts contain rules for electronic records: the party relying on one must prove its authenticity, and the integrity of the electronic records system can be proven by evidence of how it was operated. Courts routinely admit e-signed contracts on this basis.

An audit trail with delivery records, timestamps, IP addresses and a document hash is the practical way to meet these rules. In Quebec, the IT Act places particular weight on maintaining the integrity of the document throughout its life cycle.

Practical tips for Canadian businesses

Everyday agreements such as NDAs, employment offers, service contracts, sales agreements and most leases can be signed with a simple electronic signature. Check the exclusions of the province whose law governs the document for wills, powers of attorney and land transfers.

Keep the executed document and its audit trail together, and remember that PIPEDA Part 1 (or provincial privacy law) applies to the personal information captured during signing. eSignSimple provides simple electronic signatures with an audit trail (timestamps, IP addresses and a document hash); it does not provide PIPEDA "secure electronic signatures".

This page is general information about how electronic signature law works, not legal advice. For a specific high-value or regulated transaction, check with a qualified lawyer in the relevant jurisdiction.