How to Understand the Legality of Electronic Signatures

Electronic signatures are a commonly misunderstood technology.

Many people are simply not aware of the legal validity of e-signatures and believe there may be privacy or security concerns with signing documents online.

However, the fact is an e-signature carries the same legal weight as a traditional wet-ink signature, and the document is considered to be legally binding once an e-signature is affixed to it.

Electronically signed documents are stored in a database for both parties to access at any time and follow a strict set of guidelines regarding their application, distribution, and legality.


The Legality of Electronic Signatures

First, it must be understood that an electronic signature is a digital signature, although a digital signature is not necessarily an electronic signature.

A digital signature is any mark, badge, or image which acknowledges the receipt and agreement of an electronic contract.

It could be a symbol, sound, or any other unique representation of the specific “signer.”

An electronic signature is a signature that is typed or drawn, with a mouse or trackpad, directly onto a document.

When the signature is drawn, biometric measurements capture the signers unique motions that directly resemble those used to create a signature with pen and paper.

The electronic signature provider that you choose attaches the signature to the document permanently and securely, making it legally binding.

If the provider is unable to do so, the signature is not legally binding as there is no way to confirm the signer’s intent to sign the document.

The reputable e-signature provider requires accessing the document through email verification or entering a personal identification number or password before the document can be signed.

This makes an e-signature legally valid, as there is proof of intent.

Once an electronic signature is generated with a reputable e-signature service, it cannot be altered.

The ESIGN (Electronic Signatures in Global and National Commerce Act) and the UETA (Uniform Electronic Signature Transactions Act) make electronic signatures legal and provide guidelines for their proper use in business transactions.

They also protect those who use e-signature technology as a way of completing contracts.

A reputable e-signature software provider creates an audit log record each time the document is viewed and signed.

The application provider also has a permissions system where documents can only be viewed, edited, and signed by specified users.

It is most convenient if the documents are stored in the cloud and accessible by the involved parties with the correct credentials at any time, from any computer.

Electronic signatures help businesses streamline document processes in a tech-driven world.

There is no reason for people or companies to be apprehensive about electronic signatures.

A vast array of information is available online to educate prospective e-signature users and spread the real facts about this innovative technology.

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