Brazil: Exporting to Brazil: New Law Boosts Enforcement of E‑Signed Contracts

In mid-2023, Brazil enacted a key update that modernizes contract enforcement. Law 14.620/2023 amended the Civil Procedure Code to explicitly recognize electronically signed documents as enforceable extrajudicial titles, without the old formality of having two witness signatures – when the other formalities are present. Traditionally, a simple contract needed to be signed by the debtor and two witnesses to serve as an enforceable instrument in Brazilian courts. This formality was often impractical for international deals. Now, if a contract is executed via a reliable electronic signature platform, it can be used directly in a debt enforcement action against a defaulting Brazilian party – just like a promissory note or other credit instrument – no witnesses required. In practice, a foreign exporter who signs a sales contract digitally with a Brazilian buyer can swiftly initiate a collection proceeding in Brazil if the buyer fails to pay, without first filing a full lawsuit. This significantly streamlines credit recovery and reduces litigation costs for cross-border business.

This legislative change reduces bureaucracy and uncertainty. It also offers practical protection for foreign companies. By ensuring your Brazil-facing contracts meet the requirements of an extrajudicial enforcement title, you gain access to faster legal remedies. Without a valid enforceable contract in hand the creditor might have to pursue a slower, contested process. In short, taking advantage of the new e-signature law means fewer hurdles to getting paid.

Foreign traders should still craft contracts carefully: include clear dispute resolution clauses, choose governing law wisely, and use secure electronic signature tools. These steps, combined with the recent legal update, greatly improve the security of contracts for exporting to Brazil. The ability to enforce agreements more efficiently in Brazilian courts makes the market more accessible and less risky for overseas companies. For more details or tailored advice on cross-border contracts and debt recovery in Brazil, our team is at your disposal.