eSignature Legality in Israel

E-Signature Legality Summary

The ESL regulates the use of electronic signatures. The ESL was amended in 2018 to remove legal barriers to the use of electronic signatures. Following the 2018 amendment, as a practical matter, an electronic signature suffices to sign most documents in Israel (the ESL currently provides that only handwritten wills are required to be signed manually).

Notable Changes in E-Signature Law Since 2020

None.

Types of Permitted Electronic Signature

The ESL defines an electronic signature as a signature that is electronic data or an electronic symbol, which has been attached to or associated with an electronic message. Israel recognizes three forms of electronic signatures:

• A "simple" electronic signature is an electronic signature not meeting definition requirements for higher levels of electronic signature, i.e., Secure or Certified. Thus, typing one´s name at the bottom of an email might constitute a simple electronic signature. 

• A "Secure Electronic Signature" is an electronic signature which meets all the following requirements:

  • It is unique to the owner of the Signing Device;

  • A Signing Device is "unique software, a unique object or unique information required for producing a secure electronic signature";

  • It enables apparent identification of the owner of the Signing Device;

  • It is created using a Signing Device that can be maintained under the sole control of the owner of the Signing Device; and

  • It enables identification of any change to the electronic message after signing.

• A "Certified Electronic Signature" is a Secure Electronic Signature for which a Certification Authority has issued an electronic (digital) certificate regarding the signature verification device required for verifying it (as of today, there are only two Certification Authorities in Israel).

Documents That May be Signed Electronically

Contracts in Israel are generally valid if legally competent parties reach an agreement by way of offer and acceptance sufficient to show the parties’ intention to be bound. Acceptance may also be indicated by conduct. Accordingly, for most contracts, Israeli law does not restrict the use of electronic signatures if the parties both agree to use electronic signatures.

After the 2018 amendment, any electronic signature, including a "simple" electronic signature, can comply with the legal requirement for a signature provided the type of signature used is adequate to fulfill, to a sufficient degree of certainty, the purposes of such requirement (this is a vague standard that has not yet been examined by the Israeli courts). However, the Ministry of Justice has published a clarification of this standard which explains that one should:

a) Identify the purposes behind the legal requirement by, in most cases, (i) identifying the signatory and ensuring that consent to sign the document has been demonstrated; and (ii) ensuring that the document cannot be altered after it has been signed;

b) Examine the level of certainty required and the possible consequences of not fulfilling the objectives on a case by case basis, bearing in mind (i) the characteristics of the intended document signatory and of the person relying on the signed document; (ii) the nature of the document in question and the work environment in which it subsists; (iii) the relationship and the level of familiarity between the parties; and (iv) the parties' mutual understandings and consents regarding the type of signature; and

c) Choose a type of electronic signature that best addresses these matters.

Therefore, the following categories of documents typically do not impose any requirements on the use of electronic signatures:

• HR

• Procurement

• Corporate Resolutions (subject, however, to the corporate's constitutional documents and signatory rights and authorizations)

• NDAs

• Software Licensing

• Healthcare

• Lending

• Chattel Paper

• Insurance

• Education

• Life Sciences

• High Tech

• Documents to be Recorded

• Consumer Transactions.

Further Guidance

The following either have specified additional requirements for using "simple" electronic signatures, may require the use of Secure Electronic Signatures or Certified Electronic Signatures, or the use of electronic signatures is not prohibited, but caution should be exercised before using such electronic signatures due to the sensitivity of the type of document: 

• Certain Banking Documents

• Real Estate

• Documents requiring Notarization or apostilled copies

• Certain Government Filings.

Under Israeli law, a signature will not be deemed inadmissible solely because it is an electronic signature. If there is a dispute, “where a contracting party has greater influence on determining the electronic signing method used to execute the contract, that party bears the burden of proving that the counterparty has in fact signed the contract.” To help with satisfying this burden, a party often relies upon an electronic signature platform that provides an audit trail, options for associating the signature with the signer(s) and a mechanism by which the party can establish that the signature and document have not been tampered with.

In addition, while there is nothing to prevent the use of electronic signatures from the ESL perspective, specific regulators (e.g., the Bank of Israel) and certain governmental authorities may impose their own restrictions on the use of electronic signatures or refuse to accept documents signed electronically or by a "simple" electronic signature. 

An electronic message signed with a Secure Electronic Signature has a heightened level of admissibility in a legal proceeding with a presumption that (i) the signature is that of the owner of the Signing Device, and (ii) the electronic message is the one that was signed by the owner of the Signing Device. A Certified Electronic Signature is held to be a Secure Electronic Signature and has the additional benefit of verification. Other than these characteristics, there is no evidentiary difference between the two with respect to their admissibility. 

Enforcement Penalties for Non-Compliance

There are no statutory penalties for non-compliance with the ESL per se, but rather only implications with respect to the possible enforceability or admissibility into evidence of the fully executed document. 

With respect to enforceability, the Israeli contracts laws normally do not require a document to be signed in order to be binding so long as the court is convinced that it was the intention of the parties to enter into the contract. Therefore, it is unlikely that there would be implications on enforceability beyond the ability to prove that the document was actually signed by the party wishing to invalidate the contract. 

With respect to the admissibility into evidence, this would be governed by the general rules of evidence and the "best evidence" rule. With respect to proving documents, the "best evidence" rule holds that the best evidence for this purpose is the original document. In the case of an electronic signature, there is no "original," thus a copy of the document with the electronic signature would usually be considered to be the "best evidence" available. The courts will also be willing to recognize an electronic version of a document or a copy thereof if satisfied that such version has high credibility. 

Seminal Case Law

There is no Israeli case law addressing the use of electronic signatures or otherwise challenging an electronically signed document.  

Publicly Accessible Hyperlink(s) to Laws/Regulations Discussed Above 

• Electronic Signature Law, 5761-2001 (in Hebrew)

• Ministry of Justice clarification document on standards for electronic signatures (in Hebrew)

• Additional useful information on electronic signatures available from the Ministry of Justice (in English)