Is a signature by fax valid?

The fax is still a frequently used means of communication

According to a survey by the digital association Bitkom, fax machines are still frequently used in many companies. Why is that?

Many companies appreciate the speed because it enables them to send and receive documents in real time. However, what should companies be aware of when using a fax machine for documents with signatures?

With a (faxed) signature, a distinction is made between valid and provable

A faxed signature is valid if it fulfils the requirements for a legally valid signature. This means that the signature must be handwritten and unmistakable and document the intention of the signatory.

However, faxing has a decisive disadvantage: A signed and faxed document loses its probative value just like a scanned document.

Read more about the background in the blog post here: Is a scanned signature legally valid?

In addition, there are some exceptions where a signature by fax is not sufficient. For example, for contracts that require notarisation or for documents with a written form requirement. For the latter, the signature must be either handwritten on paper or digital with a qualified electronic signature.

A faxed signature is therefore legally valid, but cannot be proven and does not fulfil the required form in all cases.

More than a third of companies in Germany use fax frequently

Why is the fax so popular in Germany and why does it seem to be a perennial favourite? Although faxing is on the decline in Germany, it is still popular. For many users, it is a reliable and secure method of sending documents without having to send them by post and at the same time receiving proof of delivery. As long as a functioning fax machine is available and the contractual partners accept orders and documents via it, there is therefore no urgent need for change for many.

However, faxing is increasingly being replaced by alternative methods in Germany.

According to a Bitkom Research survey from 2021, fax usage is falling steadily (see chart). However, although the downward trend will continue, many companies will still continue to rely on fax machines for external and internal communication in the coming years.

Replacing an established and familiar channel takes time, even if the range of digital options is increasing.

However, signatures can become illegible or partially unrecognisable if the fax is of poor quality or the pages are not transmitted completely. In some cases, the originality of the signature can also be questioned if it is only transmitted as a copy by fax. In such cases, transmission by post or the use of an electronic signature solution is recommended.

For legally valid and verifiable signatures, the use of an electronic signature solution is recommended

For which companies is the use of an electronic signature suitable? In principle, every company should constantly examine and analyse the extent to which it can simplify its processes. The use of software for electronic signatures is suitable for companies of any size and in any industry that want to process documents digitally and paperlessly and rely on signatures that are both legally valid and verifiable.

Companies that frequently have to sign contracts, consent forms or other legally binding documents in particular can benefit from electronic signatures. Companies that also focus on mobile working and flexibility benefit from the flexible use of electronic signatures, as documents can be signed at any time and from any location.

The use of electronic signatures offers companies many advantages and is an effective and cost-efficient tool for the digital processing and management of documents.

Time saving: Electronically signed documents do not have to be sent by post or fax and are transmitted as quickly and easily as an e-mail.
Cost savings: The use of electronic signatures saves paper, printing and postage costs.
Security/data protection: Electronic signatures have security measures such as password protection and encryption, which ensure that only authorised persons have access to the document and the signature.
Overview/administration: Electronic signatures such as inSign make it easier to keep track of all documents, as well as open and completed signatures thanks to process management.
Environmental friendliness: The use of electronic signatures is more environmentally friendly than printing and sending paper documents by fax or post.

Summary

Faxing signed contracts is in principle legally valid, but in many cases the ability to provide evidence is lost. If in doubt, it is advisable to seek legal advice or to switch to a software solution for signature processes.

Contact / Consultation

Would you like to use electronic signatures in your company in a legally secure way and not only save money, but also massively accelerate your signature processes at the same time? Then get in touch with our inSign team now.

About the author

Ursula Korotwitschka – Marketing Specialist

Ursula has been working for many years on all aspects of electronic signatures and how smart software can make everyday work easier.