Digital signatures are revolutionizing the way companies conclude contracts and design business processes. A must for all companies in the context of digital contract management!
In a digitized (business) world, many processes that were historically paper-based are gradually being replaced by electronic solutions. At the forefront of this trend is everything related to contract management in companies. Regardless of the type of contract, whether it is an employment, rental, or service contract, companies want to process contracts as efficiently, quickly, cost-effectively, and sustainably as possible. The goal is media-break-free digital contract management. But how can such digital contracts be signed in a legally secure and valid manner?
Since 2016, the eIDAS Regulation has enabled companies in EU member states to use trust services for electronic identification for contract processing. This regulation made it possible for the first time to sign contracts securely, efficiently, and legally binding with a digital signature—a milestone for the digitization of business processes. The introduction of the eIDAS Regulation also laid the foundation for integrating electronic signatures as a reliable tool in everyday business.
In March 2024, the revised eIDAS 2.0 came into force to address weaknesses in the original version and promote uniform application in all EU countries. Another improvement is the precise definition of standards for the various security levels of electronic signatures. This not only facilitates implementation in digital processes, but also promotes the acceptance of digital signatures as legally valid and widely used.
E-signature: Digital signature with class
Digital signatures, often referred to as electronic signatures, come in different grades or "levels" which, depending on the type of document, may or may not replace handwritten signatures (also known as "wet signatures"). These signatures differ primarily in their level of security and are divided into the following three categories: simple electronic signatures (EES), advanced electronic signatures (AES), and qualified electronic signatures (QES).
Simple electronic signature (EES)
The simple electronic signature confirms the authenticity and integrity of documents and emails wherever the law requires written form. It is comparable to a normal envelope that you simply seal and send. The envelope protects the contents, but it does not offer any additional security. Anyone could open the envelope and change the contents without it being immediately noticeable. This digital signature does not replace a handwritten signature, as it is subject to free judicial evaluation of evidence (in other words, judges do not have to follow fixed legal rules when evaluating [evidence]).
Advanced electronic signature (AES)
The advanced electronic signature ensures the integrity of the signed document by means of a certificate, similar to a registered envelope, where the recipient must confirm receipt. You can track the sending and receipt, but the content could theoretically still be changed. However, this signature is also subject to free judicial evaluation of evidence and, like the EES, does not replace a handwritten signature.
Qualified electronic signature (QES)
A qualified electronic signature requires that the signatory can theoretically be identified at any time (including via video). It is like a sealed and certified envelope that ensures that the content cannot be altered and that the sender and recipient are verified by a trust service provider. This method is therefore legally equivalent to a handwritten signature, as it offers the highest level of security and legal recognition and is actually the standard when it comes to creating a digital signature.
Figure 1: Overview of all electronic signatures | isr.de
Disclaimer: The information provided on this website does not constitute legal advice and is not intended to address any legal issues or problems that may arise in individual cases. The information on this website is of a general nature and is provided for informational purposes only.
Digital signing: All advantages at a glance
- Faster processing of business processes: All business processes that require a signature are significantly accelerated by e-signing.
- Conclude contracts in real time: No more long waiting times due to sending contract documents back and forth. With digital signatures, you can conclude contracts almost in real time.
- No media breaks: By using e-signing solutions and creating a digital signature, you save yourself the hassle of printing and scanning. Your signed documents are stored securely and digitally (e.g., in the cloud) and are ready for immediate electronic dispatch.
- Signature process independent of time and location: Whether in the office, working from home, or on the go—sign your contracts flexibly and independently of devices from anywhere.
- GDPR compliant & protected: All your data is secure and protected by the digital certificate.
- Save paper and postage costs: With electronic signatures, you not only save on postage costs, but also do your bit for the environment and conserve resources.
Signature process in ISR Contract Manager
At ISR, we are your reliable partner when it comes to modern digital contract management with digital signatures. Our ISR Contract Manager provides you with all the tools you need to manage contracts efficiently, securely, and legally.
We have seamlessly integrated qualified electronic signatures into the standard version. This allows you to conveniently have contracts signed by external partners—without direct access to your internal network. ISR Contract Manager comes with EMS E-Sign as standard, so you can start using digital signatures right away. Want to create a digital signature but use a different e-signature provider? No problem!
Figure 2:Signature process in ISR Contract Manager | isr.de
Upon request, we can integrate DocuSign (ISR partner since the end of 2024) or other providers such as Adobe Sign for you.
This is how the signature process works in ISR Contract Manager:
Step 1 – Check access rights:The ability to initiate a digital signature in ISR Contract Manager is linked to the respective role or role assignment. Only authorized users can start this process.
Step 2 – Assign signatories: In the contract file, under "Signature process," select the person or persons who are to provide the digital signature.
Step 3 – Set an expiration date: Define a deadline by which the digital signature must be provided. Once this deadline has passed, the process can be restarted if necessary.
Step 4 – Start the process: You can start the signature process via the three-dot menu. Both parties will receive an invitation to create their digital signature. Verification is carried out by a trusted service provider (Trust Service Provider ) such as EMS E-Sign or others.
More than just contract management: Advanced features for your business
In addition to the option of adding a digital signature to contracts, ISR Contract Manager offers seamless tracking of your contracts. You can keep track of which phase of the contract lifecycle a document is in and which steps are still pending at any time. This transparency ensures full control over the progress and status of your processes.
The ISR Contract Manager seamlessly complements our ISR Information Office document management system, making it an essential part of your digital work environment. Our Contract Manager is a versatile and comprehensive tool that can be flexibly adapted to your individual requirements. This not only optimizes your workflows, but also ensures that your processes remain lean and efficient without sacrificing important functions.
Interested in our contract management software?
Benefit from a modern, powerful solution that not only helps you to legally sign contracts with a digital signature, but also significantly simplifies contract management as a whole.
Do you have any questions or would you like to find out more? Write to us—we look forward to helping you!
Jens Brettschneider
Head of Business Unit
Application Management
jens.brettschneider@isr.de
+49(0)151 422 05 425
