Name
Global FinTech Guide
Country _ Name
Singapore
SectionTitle
Signature requirements
Body
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

Singapore has adopted the Electronic Transactions Act 2010 (ETA) which provides the legal framework for the use of electronic signatures on most agreements.

The ETA generally prescribes two categories of electronic signatures: (a) an electronic signature; and (2) secure electronic signature. While both types are recognized and enforceable, secure electronic signatures provide for the following additional presumptions under the ETA, that:

  • the secure electronic signature is the signature of the person to whom it correlates; and
  • the secure electronic signature was affixed by that person with the intention of signing or approving the electronic record; and
  • the electronic signature is authentic and has integrity.
At minimum, an electronic signature must meet the following requirements to be enforceable:
  • the method of signing is used to identify the person and to indicate that person’s intention in respect of the information contained in the electronic record;
  • the method of signing used is either:
    • as reliable as appropriate for the purpose for which the electronic record was generated or communicated, in the light of all the circumstances, including any relevant agreement; or
    • proven in fact to have fulfilled the functions described in paragraph (1) above, by itself or together with further evidence.
A secure electronic signature must meet the following requirements:

  • unique to the person using it;
  • capable of identifying such person;
  • created in a manner or using a means under the sole control of the person using it; and
  • linked to the electronic record to which it relates in a manner such that if the record was changed the electronic signature would be invalidated,
Documents that cannot be executed through electronic signatures includes wills, real estate transactions and deeds.

Presence of any specific formal requirements to effectively conclude a loan agreement

There are generally no specific formal requirements to conclude a loan agreement in Singapore. Parties need only ensure that the agreement contains the formal contractual requirements to be fundamentally considered a binding agreement.

Process of conclusion of a contract by using a qualified electronic signature in practice

As explained above, the equivalent in Singapore are secure electronic signatures which must meet the requirements under the Electronic Transactions Act 2010 of Singapore.
There is no prescribed list of accepted vendors providing secure electronic signatures and there is no licensing requirements for such vendors. Parties using any vendor should ensure their the technology provided by the vendor results in secure electronic signatures.

Legal consequences to a contract in case of not fulfilling formal requirements
The failure to meet the formal requirements will typically deem the contract an unenforceable contract.

Usual practice of signing contractual agreements in the B2B sector

From our experience, the signing of contracts through electronic signatures has gained significant popularity due to its convenience, speed and the increased awareness among market participants of the availability of electronic-signing platforms. Nonetheless, wet-ink signatures continue to be popular among businesses.

Usual practice of signing contractual agreements in the B2C sector

As mentioned above, both electronic signing and wet-ink signing are popular. There is no clear favorability of one over the other.

Authors

Close

Choose country