Digital Signature of Documents in Cyprus

I am frequently asked whether placing a digital signature on a document greats a binding obligation on the parties to an agreement.

So I decided to dig deeper into this matter and share with you my findings, current Cyprus law and best practise to be followed.

Is a digital signature on a digital document binding?

EU Regulation No. 910/2014 on Electronic Identification and Trust Services for Electronic Transactions in the Internal Market (“Regulation on Electronic Transactions”)

Building trust in the online environment is key to economic and social development.

Lack of trust, especially due to the lack of certainty on the legality of a contract, makes everyone reluctant to carry out transactions electronically and adopt new services.

On the contrary, continuing to use paper and wet-ink signatures also means that you have to deal with the filling, administration and the relevant GDPR risks.

The Regulation on Electronic Transactions created the foundations for a digital government and prompted the private sector to adopt the same.

As a consequence of the Regulation on Electronic Transactions several matters were provided for, e.g.:

• Website authentication Services
• Cross border recognition between national legal systems
• Use of electronic seals by legal persons
• Retention periods  of electronic documents

but most importantly that:

Evidence Law, Chapter 9 of the Laws of Cyprus or in other words how is the Regulation on Electronic Transactions adopted in Cyprus

In accordance with Section 2 of the Evidence Law a ‘document’ is anything upon which content, is recorded or imprinted including electronic signatures, electronic seals, electronic time stamps, electronic documents, registered electronic dispatch as these are defined by the Regulation on Electronic Transactions.

Right of the court not to accept a document

In accordance with Section 36 of the Evidence Law, the court has discretion, for the purpose of serving justice, having taken all the facts of the case, to reject a document as admissible to evidence.

Constitution of the Republic of Cyprus

In the case of ΑΣΤΥΝΟΜΙΚΟΣ ΔΙΕΥΘΥΝΤΗΣ ΛΕΥΚΩΣΙΑΣ ν. ΓΙΑΤΡΟΥ κ.α., Αρ. Υπόθεσης: 23042/2015, 25/7/2019 , a case within a case, to asses the admissibility of evidence in the main case, the court considered Article 17 of the Constitution which reads:

Article 17 – Constintution of Cyprus
1. Every person has the right to respect for, and to the secrecy of, his
correspondence and other communication if such other communication is
made through means not prohibited by law.

The rights afforded by Article 17.1 of the Cyprus Constitution extend to any transmission of thoughts and ideas in whatever medium and accordingly this protection is afforded to telephone calls, electronic messages, fax and other means.