What has changed in 2024 and how to properly formalize electronic agreements
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You conduct business via email and instant messaging. Do you know which of your correspondences are already legally binding contracts?
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Do you know how signing a contract via scanned data differs from signing a contract with a qualified electronic signature—and when does this matter?
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What three rules must be followed when conducting business correspondence so that every important agreement has evidentiary value?
The company reached an agreement with the contractor via WhatsApp: the scope, deadline, and price were all agreed upon in correspondence. They decided to sign the contract later. “Later” never happened. When the contractor was halfway through the work and stopped, it turned out there was no legally binding obligation to complete it. The correspondence exists, but how exactly to classify it is a question for the court.
What changed in 2024
On June 4, 2024, amendments to the Law on Arbitration Courts came into force, legally enshrining a previously controversial issue: exchanging messages using electronic means of communication is an appropriate means of concluding an agreement, including an arbitration agreement.
This reflects a broader trend in Latvian law: electronic communications are recognised as legally significant if certain conditions are met.
Three levels of electronic contracting
Level one—maximum protection: qualified electronic signature (eSignature). A document signed by both parties via eSignature or a similar system is recognized by EU member states as equivalent to a handwritten signature. Use for important and long-term contracts.
Level two—good protection: exchanging signed scans via email with confirmation. Each party signs the PDF personally, scans it, and sends it by email. Important: save the outgoing and incoming email headers. After the 2024 amendments, courts are increasingly accepting such documents.
Level three—basic protection: instant messaging or email correspondence with explicitly agreed-upon terms. This serves as proof of agreement, but is vulnerable if the defendant disputes the agreement or claims the sender was not authorized.
Five rules for secure electronic communication
Rule number one: important approvals should be sent to a work email only. Personal addresses and instant messaging apps create the risk of denial of authority. A work email with a corporate domain is much more convincing.
Rule two: after a verbal conversation, follow up with a written summary. If you’ve negotiated over the phone or in a meeting, immediately send a letter: “I confirm our agreement of [date]: we agreed on the following…” Ask for confirmation. This creates a written record.
Rule three: clearly document consent. A simple “OK” or ”👍” as a reply in a messenger is less effective than “I agree to the terms and conditions, ready to sign.” Strive for explicit, written consent.
Rule number four: save your correspondence systematically. Create folders for each contact. Screenshots should include the date, contact name, and context. Deleted messages are difficult to recover.
Rule number five: For large transactions, always have a written contract. Correspondence is fine as a supplement to the contract. As a substitute, it’s risky. For amounts over €5,000, spend an hour on a proper contract.
Photo-scan vs. electronic signature: what’s the difference?
A photo scan of a signed agreement confirms that a certain person signed a certain document. The document can be altered before scanning, which poses a risk. If challenged, proof must be provided that the document was not altered.
A qualified electronic signature is cryptographically linked to a specific person and the specific contents of a document. Any modification to the document after signing invalidates the signature—this is automatically visible. Irrefutable.
Checklist for concluding a deal online
Determine the importance level of the transaction and select the appropriate level of execution
For amounts over 5,000 euros – a qualified electronic signature or a meeting for signing
When exchanging scans, save the email with headers, both copies
After negotiations, send a written resume and receive confirmation.
Ensure that the signatory is an authorized representative of the company
Include an arbitration clause in any electronic contract
The electronic environment is not a zone of reduced responsibility. It’s an environment where everything is recorded—if you know how to do it.
This article is for informational purposes only and does not constitute legal advice.