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Bulgaria
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Signature requirements
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The signature requirements pertain the legal or contractual requirements in order to make a legally effective declaration of intent or a legally binding contract.

Possibility to replace a specific formal requirement of making a binding declaration of intention

According to the Electronic Document and Electronic Certification Services Act (EDECSA), documents requiring a qualified written form (e.g. notary deeds) as well as documents, for which the possession of the document is legally required (e.g. some specific type of securities), may not be signed electronically. Apart from these documents, since Regulation (EU) 910/2014 is directly applicable, the qualified electronic signature is entirely equivalent to a handwritten signature of a document, no further or additional declarations needed.

According to EDECSA, an express binding stipulation or agreement (not necessarily a formal agreement) is needed to consider the advanced and the simple electronic signature as handwritten equivalent.  


Presence of any specific formal requirements to effectively conclude a loan agreement

In case a loan agreement includes interest stipulations, a mandatory written form is required. The same requirement is in place for the consumer’s loan agreement, concluded between a natural person and a credit or financial institution. According to EDECSA, the written form will be deemed complied with if an electronic document containing an electronic statement is drawn up. Therefore, in most cases, electronically signed documents will be deemed sufficient to conclude a loan agreement. The Consumer Credit Act goes even further, acknowledging that the consumer credit contract can be concluded on any durable medium which would in most cases need the e-signature of the contract. The same possibility is stipulated regarding the loan agreement in the Consumer Credits Related to Immovable Property Act.

Not only regarding the consumer credits contract, but in general, electronic signature, in case it covers all legal requirements mentioned in pt. ‘a’ above, is a valid and legally binding means to effectively conclude a loan agreement in Bulgaria.


Process of conclusion of a contract by using a qualified electronic signature in practice

According to the applicable Regulation 910/2014, the qualified electronic signature in Bulgaria is equivalent to a handwritten signature. The conclusion of the contract is equally legally binding whether it is carried out with a handwritten signature or a qualified electronic signature.

The time and place of conclusion of the e-signed contract, however, are not expressly regulated. Transposing traditional contract rules to the e-signature, the contract is deemed concluded with its signature by the last signing party. Therefore, the time of conclusion of the contract is the time indicated on the qualified signature of the last signing party. The place of the conclusion is usually determined by the same rule. However, if the parties agree on a different rule or a specific place of conclusion, in general there will be no obstacle to accepting this specific place of conclusion of the contract.

It shall also be taken into consideration that an alternation of the document in any way, after its e-signature, even by one party, shall invalidate the qualified signature placed before the alternation. Therefore, the qualified signature provides larger guarantees for the parties. It is not also allowed by legal stipulations, but is also widely utilized in practice, especially in B2B relations. In recent years, qualified signatures are becoming a more common method of conclusion of contracts even between particulars.


Legal consequences to a contract in case of not fulfilling formal requirements

Regardless of the fact if the formal requirements concern the signature or the form of the contract, if they are not met, the contract has no legal effect. There are some exceptional cases where the non-fulfilment of the formal requirements shall not affect the binding effect of the contract if they are fulfilled later in the contractual relations between the parties, but if the non-fulfilment affects the legally required form of the contract, no such exceptions shall apply.


Usual practice of signing contractual agreements in the B2B sector

In the B2B sector, e-signing is a common practice of signing contractual agreements. It is a widely used method of signature because it corresponds better with the business dynamics, permitting the parties to sign the contract according to their respective availability. Moreover, the specific protection of a document, signed with a qualified signature, that invalidates the signature in case of alternation of the document after the signature, provides enough certainty for the parties, making e-documents or e-signed documents a trusted method of conclusion of all types of agreements.



Usual practice of signing contractual agreements in the B2C sector

E-signature in the B2C sector has become more utilized in recent years. Since a great number of consumers do not own a qualified signature, advanced and simple electronic signatures are commonly used methods for remote conclusion of B2C contracts. In practice, the two-factor authentication is the better practice, but the more widely used method is the simple electronic signature. Apart from the conclusion of the contract and its legally binding effect, according to the Bulgarian Civil Procedure Code, e-documents are accepted as valid, and binding proofs by the Bulgarian courts. Since the Covid-19 lockdown, Bulgarian courts are widely accepting court submissions in electronic form. A centralized e-justice platform, significantly improved in the last 3 years, allows parties to submit e-signed documents and proofs, receive information and documents on the ongoing court proceedings, pay court fees and receive court notifications through the platform, all in electronic form. The e-justice system has strengthened the country’s trust in e-documents and e-signing making it a preferred and widely utilized method in Bulgaria.




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