Electronic Signatures Are Real. Are They?
05 Nov 2024
Electronic signatures ensure document transparency. That's why more than one billion users reported that they are comfortable with signing their documents electronically.
Electronic signatures demonstrate the individual's consent to the agreement, and it is not a new concept. Many companies have already accepted and levelled up with electronic signature solutions to improve efficiency and productivity and manage time.
Getting back to the question. Are the eSignatures legal? Yes, they are. Electronic signature software creates a binding contract that is secured, simple, and more efficient.
In this blog, VeriDoc Sign discusses what makes an e-signature legally binding. We also cover how valid they are and more.
Are The eSignatures Legally Enforceable?
You get the most substantial evidence when you combine eSignatures with tamper sealing, security, strong authentication, and audit trailing. Of course, they are stronger than a wet signature. Do you know how you can check the authenticity of a wet signature?
You need first to compare copies of the signatures.
Handwriting experts help you resolve the duplication then. Often, it would be best if you also had witnesses.
For a wet signature, you not only need more hours for the process but also to check its validity.
The human element makes it less reliable even after the rounds of checking.
While for an eSignature, the process differs from one service provider to another, some checkpoints remain the same. Most eSignature software stores and shares its history's complete evidence and timestamps, including every view, sign, decline, etc. These service providers maintain all this information in a certificate of completion.
What does this certificate of completion have?
The sender's identity.
An envelope ID.
The representation of signatures. (graphical)
The IP address of the place where these actions take place.
Timestamp of the activities with the document.
Types Of Documents That One Can Sign Electronically.
Companies have been accepting and enforcing electronic documents for a while. It has been ruling business and personal transactions worldwide for its simplicity and effectiveness. You can sign a business document electronically now. But, let us look at the types of copies that you can use electronic signatures for:
NDAs or Non-disclosure agreements
Work statements and sales contracts
New hires deals, employee policy updates, and offer letter
Customer service and purchase order agreements
Transaction related to real estate
Paperwork to open a new account
Insurance policies and claims, etc.
Electronic signatures are always an easy way out. You do not have to waste hours on documentation anymore. When you have a business to handle, excess paperwork is nothing more than trouble. But, every perk comes with an exception. An electronic signature is not valid when you want to sign:
Wills
Agreements governing divorce, marriage, or any other intense family law
Notice that states the cancellation of utility services
Testamentary trusts
Orders by a court of law or official documents of court
Notice for termination of health or life insurance policies
Documents of eviction or default, especially when it is for a primary residence of any individual
A document that you require legally to transport any harmful chemicals. These chemicals include pesticides.
Notices that demonstrate a health or safety risk.
But, everything comes with limitations. So, it is better to know both the benefits and the regulations. Electronic signatures are accepted globally, so before you plan to use them, study the laws of your land first. Some countries still possess certain restrictions on switching to eSignatures for vital contracts.
New technologies are incredible. It is the best time for you to switch to eSignatures for competitive advantage. With VeriDoc Sign eSignature solution, you have a great potential to increase your overall productivity and efficiency and ensure document transparency every time.