Electronic signatures have become an integral part of digital lives. Whether you’re signing contracts, documents, or agreements online—electronic signatures are a convenient and efficient way to formally approve something without having to print out paperwork. But while they may be commonplace in the modern world, there is still much confusion surrounding their legal validity and how exactly they work.
In this article, we will provide six key points you should know about electronic signatures and their legal bind and hopefully, by understanding them, you can confidently use electronic signatures for your own business or personal needs with peace of mind.
Table of Contents
What is an electronic signature?
An electronic signature, also known as e-signature, is a data string used to sign digital documents or contracts. It can be in the form of typed names, images, biometrics such as fingerprints, or voice recordings. These are legal and binding forms of agreement when accepted by both parties and are treated by the law as signatures made with pen and paper.
However, depending on what needs to be signed, different levels of assurance may be required. For example, when signing a legal document or contract, the signer should provide proof that they are indeed who they claim to be.
How to generate one?
There are three ways to generate an electronic signature. You can either use signing software, purchase a hardware device that creates digital signatures or simply type your name at the bottom of the document. You can use an esignature generator to create electronic signatures from your computer or mobile device, which will then be attached to the document. These software programs are designed to ensure that the signature is authentic and secure.
However, with most online services, you will be asked to confirm your identity with a password or two-step verification before your signature can be accepted.
Is it legally binding?
Yes, an electronic signature is a legal form of agreement and is just as valid as a handwritten one. Electronic signatures have been legally accepted in many countries since the 1990s and have been given legal force by the EU’s eIDAS Regulation. The regulation states that all electronic signatures are considered valid as long as they are “uniquely linked” to the signer and can be used as evidence in court.
Additionally, companies that offer electronic signature services are usually compliant with stringent international security standards, making them even more secure.
What documents can be electronically signed?
Almost any kind of document—from contracts to tax forms—can be electronically signed. However, in some cases, certain documents may require wet signatures for extra assurance and legal protection. Examples of such documents include wills, court proceedings, and property deeds.
The main difference between the two is that wet signatures require a physical presence and manual signing, while electronic signatures can be used remotely. Additionally, electronic signatures are easier to track and can be used to verify the authenticity of a document.
The benefits of using electronic signatures
The numerous benefits of using electronic signatures include that they can save time and money, reduce paperwork, streamline processes, improve visibility into document sign off, and enhance security.
In addition, they are also more convenient than traditional wet signatures as they can be created quickly without the need for in-person meetings or paperwork. They provide a secure way for two parties to sign an agreement without having to worry about the document being tampered with or lost during transit. This makes them ideal for use in times of remote working and online collaboration.
Ultimately, using electronic signatures can help you stay competitive by allowing you to quickly and securely close deals at any time, from any location.
The risks associated with electronic signatures?
The most common risk associated with electronic signatures is the potential for forged documents or identities. It is important to have a secure system in place that validates each signature before it can be accepted and stored.
Additionally, while electronic signatures are legally binding, they may not be enforceable in certain situations, such as when a document needs to be witnessed or notarized.
Finally, electronic signatures can still be susceptible to cyber attacks, so it is essential to ensure that all documents are stored securely and encrypted before they are transmitted.
Electronic signatures offer many advantages over traditional wet signatures, such as saving time and money, reducing paperwork, streamlining processes, improving visibility into document sign off, and enhancing security. However, it is important to be aware of the risks associated with electronic signatures to ensure that documents are secure and legally binding. By understanding these risks and taking steps to mitigate them you can confidently use electronic signature technology for all your online business needs.
The post Are Electronic Signatures Legally Binding? Here’s What You Should Know appeared first on Enterprise Podcast Network – EPN.
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