Electronic signature laws and validity in Canada

The Canadian law on eSignatures can vary slightly between provinces, but one thing remains certain: electronic signatures on the rise.

Whether you're leading the way with electronic signing, or just getting started, this guide is well worth a read.

Are electronic signatures legal in Canada?

Electronic signatures are legally binding and valid in Canada so long as there is the clear intention by the parties to be legally bound by the agreement when signing. This means they hold the same weight as wet ink signatures. 

The stance on electronic signatures in Canada is made clear by the vast library of federal acts and regulations that confirm the validity of eSignatures. 

“Most Canadian provincial and territorial jurisdictions have enacted electronic commerce and transaction laws that provide electronic equivalents to paper-based signatures” - Treasury Board of Canada Secreatariat

At the federal level, the Personal Information Protection and Electronic Documents Act (PIPEDA) provides a broad framework for recognizing electronic signatures as valid and enforceable, particularly in commerce and business dealings. 

However, several provinces have also adopted their own legislation that governs electronic signatures with some slight regional differences. Let’s break down the various eSignature laws and regulations in Canada, and how they vary.

Electronic signatures laws in Canada

Personal Information Protection and Electronic Documents Act (PIPEDA)

The Personal Information Protection and Electronic Documents Act (PIPEDA) establishes the use of electronic signatures for federal matters.

PIPEDA recognizes the legal validity of electronic signatures in most business transactions, provided certain requirements are met:

1. Intent to sign: The individual must have the clear intent to sign the document electronically.
2. Consent: All parties involved in the transaction must agree to use electronic signatures. Consent can be express (explicit) or implied based on the circumstances.
3. Reliability of the electronic signature: The method used to sign electronically must be reliable and appropriate for the transaction. This means that it should be able to identify the signer and demonstrate their approval of the content.
4. Record integrity: The signed document must be stored in a way that allows it to be reliably reproduced when needed. The electronic signature must be linked to the document in a way that prevents unauthorized changes.

Under PIPEDA, an electronic signature is defined as: “a signature that consists of one or more letters, characters, numbers or other symbols in digital form incorporated in, attached to or associated with an electronic document”.

Uniform Electronic Commerce Act (EUCA)

The Uniform Electronic Commerce Act (UECA) is a model law developed by the Uniform Law Conference of Canada to provide a standardized framework for the use of electronic communications and transactions, including electronic signatures, across Canadian provinces and territories. 

While the UECA recognizes the validity of electronic signatures, it emphasizes that the reliability of the method used to create the signature is crucial. This means that electronic signatures should be created and stored in a way that ensures:

• The identity of the person signing is clear.
• The signature expresses the signer’s intent.
• The document and signature cannot be tampered with after the signature is applied.

It is designed to harmonize electronic commerce laws throughout the country and facilitate the use of electronic signatures in business, government, and consumer transactions.

The UECA is not itself law but serves as a model for provinces and territories to adopt or adapt. Many Canadian jurisdictions have implemented legislation based on the UECA, with some variations in language or application. These are provincial laws, which we’ll explore now. 

Provincial laws on eSignatures in Canada

Canada’s provinces and territories have each adopted similar frameworks to PIPEDA but may have additional or unique requirements in certain areas. Some examples of the key provincial legislations include:

• Ontario: The Electronic Commerce Act governs electronic signatures and transactions. It largely mirrors the principles in PIPEDA but includes specific rules for government and public sector documents. However, the ECA does not apply to wills, codicils, and power of attorney. 
• British Columbia: The Electronic Transactions Act (ETA) also governs electronic signatures and aligns with PIPEDA’s standards. It outlines the conditions under which electronic records are considered legally equivalent to paper records.
• Alberta: The Electronic Transactions Act allows for the use of electronic signatures in most commercial transactions and ensures their legal enforceability.
• Nova Scotia: The Electronic Commerce Act is modeled after the federal framework, permitting the use of electronic signatures with only a few exceptions: wills, codicils, trusts, and soem land-related transactions. 

“A number of jurisdictions, including Canada’s provinces and territories, have developed laws, policies and standards for electronic documents and electronic signatures (e-signatures) since the mid-1990s” - Treasury Board of Canada Secreatariat

Quebec, however, has its own framework for electronic signatures, distinct from other provinces. The Act to Establish a Legal Framework for Information Technology governs the validity of electronic signatures and records within the province.

Quebec’s law places emphasis on "technological neutrality," meaning that it does not specify particular technologies but allows any reliable method of electronic signature, including digital certificates and encryption.

As in other provinces, electronic signatures are not valid for wills, personal trusts, or certain real estate transactions (e.g., those involving property transfers). Specific Quebec laws govern some exceptions where traditional signatures are still required.

How to create a legally binding eSignature in Canada

To recap: eSignatures are widely accepted across Canada, and they're generally treated as equal to physical signatures, too. This means they're commonplace across commercial transactions in most provinces.

But how do you actually create an eSignature that fulfils the requirements of Canadian laws?

Well, the most popular option is to use an electronic signature solution like Docusign, or better, an end-to-end contracting solution like Juro that offers secure and convenient eSigning experiences.

Juro’s eSignature solution is designed to offer businesses a streamlined, integrated way to manage contract signing within a fully collaborative platform.

As part of its AI-native contract management system, Juro provides an end-to-end solution for drafting, negotiating, and executing contracts with built-in electronic signature functionality.

Juro's eSigning functionality is:

• Browser-native: Juro’s eSignature solution is fully browser-based, meaning there’s no need for additional software downloads or plug-ins.
• Legally compliant: Juro’s eSignatures are legally binding and comply with the necessary regulations and frameworks, including eIDAS in the EU, ESIGN in the US, and PIPEDA in Canada.
• Secure and auditable: Juro ensures that all electronic signatures are secure, with an audit trail that tracks every interaction with the contract.
• Customizable: Juro offers customizable signing workflows, where users can configure who signs in what order, add witnesses, and set up specific signing permissions.

But the biggest benefit of using Juro is that eSigning is integrated with contract lifecycle management capabilities allowing businesses like yours to handle the entire contract lifecycle—from drafting and approval to signing and storage—within one centralized system.

To find out more, hit the button below for a personalized demo.

What do Canadian courts say about electronic signatures?

Canadian courts have generally upheld the validity of electronic signatures. These decisions have continued to affirm the validity and enforceability of electronic signatures. 

For example, in Vancouver Canucks Limited Partnership v. Canon Canada, the court held that the parties had reached a final agreement on all essential terms of a sponsorship agreement in an exchange of emails (the contract emails). The contract emails constituted an enforceable sponsorship agreement in this case, despite these being electronic. 

A similar outcome arose in Leoppky v. Meston where the court ruled that the ‘in writing’ and signature requirements of the Statute of Frauds were met by the defendant’s email, and her typed name was sufficient to constitute an electronic signature. 

These decisions and many others demonstrate the courts' willingness to interpret electronic signature laws broadly, adapting to modern business practices. 

Other relevant cases include: 

• Roussel v. Desjardins Sécurité financière
• Gryckiewicz v. Ironside
• I.D.H. Diamonds NV v. Embee Diamond Technologies Inc
• Johal v. Nordio

Exceptions to the use of electronic signatures in Canada

While electronic signatures are generally valid in Canada, there are some important exceptions where they are not accepted, particularly for documents that require additional formalities or have significant legal implications.

 Examples of documents where electronic signatures may not be accepted include:

• Wills and codicils: These require handwritten signatures and additional witnessing requirements.
• Trusts created by wills: As with wills, trusts created through a will must meet formal, traditional requirements.
• Negotiable instruments: Documents like promissory notes, bills of exchange, and other negotiable instruments often require ink signatures to be enforceable.
• Real estate transactions: In some provinces, certain real estate purchase agreements or documents related to the transfer of land must be signed in writing, with physical signatures.

FAQs

Are electronic signatures legally binding in Canada?

Yes, electronic signatures are generally legally binding in Canada, provided they meet the requirements set out in PIPEDA and relevant provincial laws.

Can all documents be signed electronically in Canada?

While electronic signatures are widely accepted, certain documents like wills, negotiable instruments, and certain real estate documents typically require traditional signatures. Always check specific legal requirements for your particular situation.

What makes an electronic signature legally binding in Canada?

An electronic signature must show the signatory's intent, be reliably linked to the document, and maintain the document's integrity to be legally binding.

Are there industry-specific standards for electronic signatures in Canada?

Yes, industries like financial services, healthcare, and legal sectors have specific standards to ensure security and compliance.

How secure are electronic signatures?

Electronic signatures can be very secure, especially when using advanced solutions that offer encryption and authentication features. The level of security often depends on the method and technology used.

Can electronic signatures be used in court?

Yes, electronic signatures are admissible in Canadian courts. However, as with any evidence, their validity may be challenged and will be assessed based on the specific circumstances of each case.

Can I use eSignatures for government filings or forms?

In many cases, yes. Canadian federal and provincial governments allow the use of eSignatures for certain filings and forms, such as tax filings, business registrations, and some permits.

However, not all government documents may be eligible for electronic signatures.

Do I need a special technology or software to create a valid eSignature?

No specific technology is required under Canadian law for a valid electronic signature, as long as the method used is reliable and captures the signer’s intent.

However, many businesses use specialized eSignature platforms (e.g., DocuSign or Adobe Sign) to ensure security and ease of use.

Can eSignatures be used in cross-border transactions?

Yes, eSignatures can be used in cross-border transactions, provided they meet the requirements of the countries involved.

Canadian law generally recognizes electronic signatures for international transactions, but parties should ensure compliance with foreign laws.

Do eSignatures have an expiration date?

Electronic signatures themselves do not expire, but the underlying contracts or documents they are attached to may have expiration terms.

In cases of digital signatures, the digital certificate used for authentication may have an expiration date, which requires renewal.

Who are some of the leading eSignature providers in Canada?

Leading providers include Juro, DocuSign, Adobe Sign, and HelloSign, among others.

Juro is not a law firm and this article should not be relied on as legal advice.