eSignature Legality Guide

None.

According to the ESL, an electronic signature is defined as electronic data or a symbol attached to or logically associated with an electronic message. Israel recognizes three main types of electronic signatures:

• A "simple" electronic signature is any electronic signature that does not meet the criteria for higher-level signatures such as Secure or Certified. For example, typing a name at the end of an email may be considered a simple electronic signature.
• A "Secure Electronic Signature" is an electronic signature that fulfills all of the following:
  1. It is unique to the owner of the Signing Device;
  2. The Signing Device is defined as unique software, an object, or information needed to create a secure electronic signature;
  3. It allows clear identification of the Signing Device's owner;
  4. It is created using a Signing Device that remains under the sole control of its owner; and
  5. It enables detection of any changes to the electronic message after it has been signed.
• A "Certified Electronic Signature" is a Secure Electronic Signature for which a Certification Authority has issued a digital certificate for the signature verification device (currently, there are only two Certification Authorities in Israel).

In Israel, contracts are generally valid if competent parties reach an agreement through offer and acceptance that demonstrates their intent to be bound. Acceptance can also be shown by conduct. Therefore, for most contracts, Israeli law does not limit the use of electronic signatures if both parties agree to use them.

Following the 2018 amendment, any electronic signature, including a "simple" one, can satisfy the legal signature requirement as long as the type of signature used is sufficiently reliable to meet the intended purpose (this standard is somewhat vague and has not yet been tested by Israeli courts). The Ministry of Justice has issued guidance on this standard, recommending that one should:

a) Identify the objectives behind the legal requirement, usually by (i) confirming the signer's identity and their consent to sign; and (ii) ensuring the document cannot be changed after signing;

b) Assess the level of certainty needed and the potential consequences of not meeting the objectives on a case-by-case basis, considering (i) the characteristics of the signer and the party relying on the document; (ii) the nature of the document and its context; (iii) the relationship and familiarity between the parties; and (iv) the parties' mutual understanding and agreement regarding the signature type; and

c) Select the type of electronic signature that best addresses these considerations.

As a result, the following types of documents typically do not have specific requirements regarding the use of electronic signatures:

• HR
• Procurement
• Corporate Resolutions (subject to the company's constitutional documents and authorized signatories)
• NDAs
• Software Licensing
• Technology sector
• Healthcare
• Lending
• Chattel Paper
• Insurance
• Education
• Life Sciences
• High Tech
• Documents to be Recorded
• Consumer Transactions.

The following categories may have additional requirements for "simple" electronic signatures, may require Secure or Certified Electronic Signatures, or may not prohibit electronic signatures but warrant caution due to the sensitive nature of the documents:

• Certain Banking Documents
• Real Estate
• Documents requiring Notarization or apostille
• Certain Government Filings.

Under Israeli law, a signature is not inadmissible solely because it is electronic. In case of a dispute, if one party had greater influence over the choice of electronic signing method, that party must prove that the other party actually signed the contract. To meet this burden, parties often use electronic signature platforms that provide audit trails, ways to link the signature to the signer(s), and mechanisms to show that the document and signature have not been altered.

Additionally, while the ESL does not restrict the use of electronic signatures, certain regulators (such as the Bank of Israel) and some government authorities may have their own rules or may not accept documents signed electronically or with a "simple" electronic signature.

An electronic message signed with a Secure Electronic Signature is presumed in legal proceedings to have been signed by the owner of the Signing Device, and that the message is the one signed by that owner. A Certified Electronic Signature is considered a Secure Electronic Signature and also benefits from verification by a Certification Authority. Aside from this, there is no evidentiary difference between the two regarding admissibility.

There are no specific statutory penalties for not complying with the ESL itself; rather, non-compliance may affect whether a document is enforceable or admissible as evidence.

Regarding enforceability, Israeli contract law generally does not require a document to be signed to be binding, as long as the court is convinced that the parties intended to enter into the contract. Therefore, the main implication is the ability to prove that the document was actually signed by the party disputing the contract.

For admissibility as evidence, general evidentiary rules and the "best evidence" rule apply. The "best evidence" rule states that the original document is preferred. Since there is no "original" for electronic signatures, a copy of the electronically signed document is usually considered the best available evidence. Courts may also accept an electronic or copied version if they are satisfied with its credibility.