What You Need to Know About the Legal Implications of Using eSignatures 

 March 13, 2021

In an ever-connected world, it’s more important than ever to be able to do business electronically. That’s where eSignatures come in. eSignatures are legally binding in many countries and jurisdictions, which means they can be used to replace physical signatures on everything from contracts to NDAs. However, there are some things you should keep in mind before using esignature to ensure that you’re operating within the bounds of the law.

What Are eSignatures?

Before we get into the legalities of using eSignatures, let’s first take a step back and define what they are. An eSignature, also known as an electronic signature, is a digital version of a traditional handwritten signature. They can be used to sign documents electronically and are considered legal and binding in many countries around the world.

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The Legal Landscape of eSignatures

There are a few things you need to keep in mind when using eSignatures from a legal standpoint. First and foremost, while eSignatures are legally binding in many countries, there are some jurisdictions where they may not be recognized. It’s important to do your research and understand the legal landscape before using eSignatures for any business dealings.

 

Another thing to keep in mind is that different countries have different laws governing the use of electronic signatures. For example, in the European Union, the use of electronic signatures is governed by the European Union Regulation on Electronic Identification and Trust Services for Electronic Transactions (eIDAS). In contrast, the United States has a patchwork of state and federal laws governing electronic signatures. As such, it’s important to consult with a lawyer familiar with the laws of the jurisdiction in which you’ll be using eSignatures before proceeding.

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Finally, it’s important to remember that even if electronic signatures are legally binding, there are still some scenarios where you may need to provide a physical signature. For example, if you’re signing a contract for the sale of real property or entering into a lease agreement, you’ll likely need to provide a physical signature regardless of whether electronic signatures are legally recognized in your jurisdiction. Consult with a lawyer to determine whether electronic signatures can be used for your specific situation.

Is eSignatures Legally Binding?

Yes, eSignatures are legally binding in the United States if they meet the requirements set forth by the ESIGN Act and UETA. These requirements include:

  • The signer must have the intention to sign the document;
  • The signer must be able to review the document before signing it;
  • The document must contain all information required by law; and
  • The signer must agree to retain a copy of the signed document.
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If all of these requirements are met, an eSignature carries the same legal weight as a traditional handwritten signature would. This means that businesses can use eSignatures to conduct transactions with customers and partners with confidence knowing that their agreements will be enforceable in court.

Conclusion:

E-signatures can save time and make doing business more convenient but it’s important to understand their legal implications before using them for any formal agreements. Although they are binding in many places, there may be scenarios where you will still need physical Signatures Regardless always consult with local Lawyers familiar with esignature laws before proceeding.

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