For nearly two decades, Lebanon’s digital legal landscape remained in a state of ambiguity, governed by outdated provisions that did not account for the complexities of the internet age. This changed significantly with the passage of Law No. 81 on October 10, 2018, relating to Electronic Transactions and Personal Data (the “Electronic Transactions Law”).
Before 2018, electronic signatures were often met with skepticism in Lebanese courts due to the strict requirements of the Code of Civil Procedure and the Code of Obligations and Contracts, which prioritized physical “wet ink” signatures on paper. Law No. 81/2018 successfully integrated digital commerce into the Lebanese judicial system, granting electronic signatures a legal status equivalent to handwritten ones, provided they meet specific reliability criteria. This modernization is a cornerstone for Lebanon’s push toward a digital economy, despite the ongoing socio-economic challenges facing the country.
Legal Framework
A. Law No. 81 of 2018
Law No. 81/2018 is the primary legislative instrument governing e-signatures. It follows the international principles established by the UNCITRAL Model Law on Electronic Commerce. The law defines an electronic signature as “a set of symbols, letters, or numbers in electronic form, linked to or logically associated with an electronic document, allowing for the identification of the signatory and expressing their approval of the document’s content.”
The law establishes two tiers of electronic signatures:
i. Simple Electronic Signature: Includes scanned signatures, “click-to-agree” buttons, or email signatures. While these are admissible in court as “commencement of proof,” they do not carry an automatic presumption of validity. If a party denies signing, the burden of proof lies with the person trying to enforce the document.
ii. Reliable (Qualified) Electronic Signature: According to Article 9 of Law No. 81, a signature is considered reliable if:
- • It is uniquely linked to the signatory.
- • It allows for the identification of the signatory.
- • It is created by means that the signatory can maintain under their sole control.
- • It is linked to the data in a way that any subsequent alteration of the data is detectable.
B. Functional Equivalence
Article 8 of Law No. 81 introduces the principle of functional equivalence. It states that an electronic document has the same evidentiary value as a paper document, provided that the person from whom it emanates can be identified and that it is created and stored under conditions that guarantee its integrity.
C. Certification Authorities (CAs)
The Lebanese law envisions a system of accredited Certification Authorities. The Ministry of Economy and Trade, in coordination with the Ministry of Telecommunications, is tasked with supervising these entities. Currently, the Lebanese government recognizes certain international providers, though the local infrastructure for domestic certification is still maturing.
Documents That Can Be Signed Electronically
The 2018 Law significantly expanded the types of documents that can be legally processed digitally. These include:
i. Commercial Agreements: B2B and B2C contracts, including supply chain agreements, service level agreements, and software licenses.
ii. Corporate Governance: Minutes of meetings, board resolutions, and shareholder notices for Lebanese Joint Stock Companies (SAL) and Limited Liability Companies (SARL).
iii. Non-Disclosure Agreements (NDAs): Common in the growing Lebanese tech and creative sectors.
iv. Consumer Contracts: Online retail terms of service and digital subscription agreements.
v. Internal HR Documents: Employee handbooks, leave requests, and certain non-binding offer letters.
vi .Banking Transactions: In line with Central Bank (BDL) circulars, many banking instructions can be initiated electronically, provided the bank has a signed “electronic banking agreement” with the client.
Documents That Cannot Be Signed Electronically
Despite the progress made by Law No. 81, Lebanon maintains a conservative stance on documents involving public order, personal status, or high-value assets. The following generally cannot be signed solely with an e-signature:
1. Transactions Requiring a Notary Public: In Lebanon, many contracts must be “authenticated” (signed in the presence of) a Notary Public. This includes the sale of shares in certain companies, the sale of vehicles, and official protests. The Notary Public system in Lebanon still largely requires physical presence and wet-ink signatures on the official register.
2. Real Estate Transactions: The transfer of ownership of immovable property, the creation of mortgages, or long-term leases must be registered with the Land Registry (DDA). These require physical presence and traditional signatures.
3. Personal Status Documents: Marriage certificates, divorce papers, wills, and adoption records. These fall under the jurisdiction of religious courts (Sharia or Ecclesiastical) and require traditional formalities.
4. Bonds and Promissory Notes: While some commercial paper is moving toward digitalization, “Sannadats” (promissory notes) used for security in Lebanon are typically required in original paper form for summary enforcement (Exécution).
5. Official Powers of Attorney (PoA): A General Power of Attorney or a Special PoA for litigation or property disposal must be signed before a Notary Public.
Notable Changes in the Laws and Practice
1. The Shift from 2004 to 2018
For years, the “Draft Law on Electronic Transactions” (first proposed in 2004) languished in parliament. During this period, Lebanese courts were inconsistent some judges accepted emails as evidence, while others dismissed them. The 2018 Law ended this era of “judicial discretion,” providing a mandatory framework that judges must follow.
2. Impact of the COVID-19 Pandemic
The pandemic acted as a catalyst for the practical adoption of e-signatures in Lebanon. With lockdowns preventing physical meetings, the Lebanese administration began accepting digital copies of certain documents. While the laws didn’t change during the pandemic, the interpretation of “necessity” led to a broader acceptance of digital workflows in both the private and public sectors.
3. Judicial Decisions and Electronic Evidence
Since 2018, there has been a notable increase in the Lebanese judiciary’s reliance on electronic evidence. Courts now routinely accept WhatsApp messages, emails, and logs as evidence in civil and commercial disputes, citing Law No. 81 as the legal basis for their admissibility.
4. Central Bank (Banque du Liban) Circulars
The BDL has issued several circulars (notably Basic Circular No. 81 and its updates) regarding electronic financial and banking operations. These regulations work in tandem with Law No. 81 to ensure that digital signatures used in the financial sector meet high security and encryption standards.
Conclusion
Lebanon has a robust legal text in Law No. 81/2018 that brings its e-signature legality in line with international standards. However, the “gap” in Lebanon is not the law, but the infrastructure. The full potential of “Qualified” signatures remains limited by the slow accreditation of local certification providers and the traditional requirement for Notary Public intervention in many civil acts.
For international businesses, the use of standard electronic signatures (like DocuSign , Adobe Sign or Flowmono) is generally sufficient for commercial contracts in Lebanon. However, for any transaction involving the transfer of property or official government registration, the physical presence of the signatory or an authorized agent remains a necessity.
References
1. Law No. 81 of October 10, 2018 (Electronic Transactions and Personal Data Law), Lebanese Official Gazette.
2. The Lebanese Code of Obligations and Contracts (General principles of consent).
3. The Lebanese Code of Civil Procedure (Articles regarding the hierarchy of evidence).
4. Banque du Liban (BDL) Basic Circular No. 81 and related implementation circulars for electronic banking.
5. Ministry of Economy and Trade (MoET): Guidelines on the implementation of the Electronic Transactions Law.
6. E-Transactions Law in Lebanon: A Step Forward,” Lebanese Bar Association Journal (Special Edition on Digital Law).
