Planning to Implement eSignatures in your business in Mexico? First read this

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Although electronic signatures are valid in Mexico since the year 2000, due to COVID-19, their use has become more widespread. Please find below the main points on the topic:

I. Validity. Electronic signatures are recognized and deemed valid in Mexico. They are regulated at the federal level by the Advanced Electronic Signature Law (Ley de Firma Electrónica Avanzada) and the Commercial Code (Código de Comercio). Their use is also recognized in the Federal Civil Code (Código Civil Federal).

II. Types. According to the Commercial Code, the existing types are the advanced electronic signature (AES) and, by opposition, the one commonly known as simple electronic signature (SES). The AES is equivalent to the certified signature in other jurisdictions.

(a) For commercial purposes, the SES produces the same effects as wet-ink signatures.

Some common SES examples are those provided by Docusign or Adobesign. Even the credit card PIN number is a SES.

In practice, there still are challenges regarding the SES’s evidentiary nature that should be analyzed since the tool selection stage.

(b) An AES produces the same effect as wet-ink signatures in any document.

In Mexico, AES can only be provided by certification services providers (PSC for its acronym in Spanish, Proveedores de Servicios de Certificación). The PSC can be public or private institutions and are authorized by the Ministry of Economy (Secretaría de Economía). The Tax Administration Service (Servicio de Administracion Tributaria) in Mexico is a statutory PSC and provides taxpayers with an AES: the FIEL (now known as e.firma).

PSCs issue certificates that bind the signatory to the AES and the content of the document it was used in, in a trustworthy and exclusive manner.

III. Practical considerations.

(a) When holding personal meetings or exchanging signatures is impossible, electronic signatures may be an alternative for signing documents, as long as the law in Mexico does not require wet-ink signatures as it happens with public deeds.

(b) There are practical and legal differences between SES and AES that should be analyzed before selecting one for its implementation, such as the type of operations they may be used in and the sophistication (or not) of the court that may hear a case.

(c) Both AES and SES are valid before Mexican courts. However, they are not exempted from being contested by the counterparty, just as wet-ink signatures are. We recommend analyzing the specific case they will be used in and the characteristics of the software selected, in order to identify possible risks and to implement a prevention and mitigation strategy from the outset.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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