Contract changes: When simple email signatures become legally binding
In the digital age, the way we communicate has evolved, but so has the law. If you negotiate, sign, or manage construction contracts where communication is frequent and issues are complex, it’s crucial to understand how email signatures and electronic communications can legally bind you to contract changes.
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Key takeaways ECT Act
Non-variation clauses aren’t foolproof
Most well-drafted contracts include a non-variation clause. This is essentially a term stating that no changes to the agreement are valid unless they’re in writing and signed by both parties or the parties’ authorised representatives.
These clauses are designed to prevent unintended amendments. However, the Electronic Communications and Transactions Act 25 of 2002 (ECT Act) introduced a new layer of complexity.
What the ECT Act says about electronic signatures
The ECT Act defines two types of electronic signatures:
- Ordinary electronic signatures: eg. a typed name in an email footer.
- Advanced electronic signatures (AES): verified by an accredited authority.
Under Section 13(3) of the ECT Act, an ordinary electronic signature is valid if it is intended as a signature and is logically associated with the data/message. This means that even a simple email footer that contains your name and designation can meet the legal threshold for a signature.
A landmark case
In Spring Forest Trading 599 CC v Wilberry (Pty) Ltd t/a Ecowash and Another [2015], the Supreme Court of Appeal held that an email exchange, which included a standard email footer, constituted a valid amendment to an existing agreement.
The court found that an email footer meets the legal requirements for an electronic signature under the ECT Act if it:
- was intended to serve as a signature,
- clearly identified the sender, and
- was logically connected to the content of the email.
This decision confirms that even if a contract includes a non-variation clause, valid amendments to contracts can be done by way of email exchanges.
For everyone involved in construction projects but particularly contract administrators, you may unintentionally:
- Agree to a contract amendment;
- Accept an instruction or variation;
- Accept early termination; or
- Commit to new terms
…just by replying to an email.
Best practices to protect yourself
- Ensure your contract non-variation or communications clause contains sufficient safeguards regarding email communication.
- Be cautious when discussing contract terms over email.
- Avoid ambiguous language that could be interpreted as agreement.
- Train your team on the legal weight of electronic communications.
- Consult legal counsel before confirming any changes in writing—even via email.
Final thought
The ECT Act has modernised contract law in South Africa, but it also means that your digital words carry legal weight. In a world where deals are done over email, understanding the law is not optional; it’s essential.
In today’s world, your email signature is more than just a formality; it could be your binding word. Stay informed, stay cautious, and when in doubt, get it reviewed before putting it in writing.
About the author
Danielle Giannico is an Associate in LnP Beyond Legal's Construction Team, and Nikita Lalla is a Director and Chief Executive of the firm.