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The signature requirements pertain the legal or contractual requirements in order to make a legally effective declaration of intent or a legally binding contract.
Possibility to replace a specific formal requirement of making a binding declaration of intention
Mexican law foresees the possibility of electronic signatures and remote consent in the execution of agreements (for example, the remote onboarding of clients of financial institutions mentioned above); therefore, while the most common form of agreements is generally the written consent, this can be replaced by other measures (subject to certain conditions).
Presence of any specific formal requirements to effectively conclude a loan agreement
As a general rule, no, although certain formalities may need to be complied with in order to cancel any securities granted under the relevant loan (for example, mortgage cancellations need to be registered before the Public Registry of Property).
Process of conclusion of a contract by using a qualified electronic signature in practice
The term “Electronic Signature” is defined in the Code of Commerce as data in electronic form affixed to, or logically associated with, a data message, which may be used to identify the signatory in relation to such data message and to indicate the signatory’s approval of the information contained therein. Electronic signatures have the same legal effect of a hand-written signature and have probative value; however, such Code also distinguishes the category of “Advance Electronic Signature” which are electronic signatures that comply with specific requirements, which are only currently met in Mexico if a Certified Services Providers (“PSC”) issues the Advance Electronic Signature. PSCs are private companies, notary publics, public brokers and certain public institutions that are duly authorised by the Ministry of Economy to serve as a PSC (e.g. the Tax Administration Service, “SAT”). The most common Advanced Electronic Signature in Mexico is the e.firma, issued by the SAT.
Legal consequences to a contract in case of not fulfilling formal requirements
“Form” in Mexico is a validity requirement (in opposition to an existence requirement). This means that improper form does not, by itself, mean the contract is absolutely null and void, rather, it can still be confirmed by the parties (or one (1) party may request the agreement is formalised as per legal requirements).
Usual practice of signing contractual agreements in the B2B sector
Mexico is a highly formalistic country, and, due to the reasons described above, electronic signatures are not especially widespread amongst institutional entities, as such customarily, B2B transactions are executed through written, physical agreements (although it is not rare for different parties to sign on different dates).
Usual practice of signing contractual agreements in the B2C sector
As with B2B models, the most common method of executing agreements in a B2C environment is through written agreements with handwritten signatures. Notwithstanding, unlike B2B models, B2C models have increasingly adopted remote consent procedures and remote onboarding.