Are Electronic Signatures Legally Binding?

The use of electronic signatures serves an important legal function. Electronic signatures are an important part of electronic records and procedures. They do not give an official impression on a document, like a mark or a badge. It is a legally recognized piece of identification, which has the same legal value as a handwritten signature. When an electronic signature is attached to a document, it becomes legally binding and enforceable. It indicates that the parties to the transaction are responsible for any changes made to the document.

This technology is very important for companies with online payment systems: e-commerce sites can greatly benefit from electronic signature systems. But how can you, as an entrepreneur or consumer, be sure that your signature is legal and enforceable?

Some laws govern the use and regulation of electronic signature systems. They are defined by the Uniform Electronic Transactions Act (UETA) and the Electronic Signatures in Global and National Commerce Act (ESIGN). Most states have passed such laws. They have changed the way electronic transactions are conducted, making them more secure and convenient.

Both laws aim to ensure that electronic signatures have a specific legal structure. The UETA and ESIGN laws define a procedural approach to the use of electronic signature software. Both stipulate that an electronically signed document is not invalid simply because it is electronic.

Similarly, creating a document in which an electronic record is used cannot be rendered legally invalid. In other words: If a document is signed with an electronic signature, it cannot be declared invalid because it was created electronically. If a contract is made with electronic and traditional paper documents, it is still legally binding.

Note that electronic signatures do not only have to be written or scribbled; according to UETA and ESIGN, documents containing electronic sounds or electronic symbols are also considered to be electronically signed. This also applies when the signatory has electronically expressed his agreement to the document. This means that the electronic signature can be a symbol, an embedded cryptogram, or a name typed electronically and approved by the parties involved in the document.

The signature used on a document must be attached or linked to the document to be signed. It must be created using electronic signature software that properly records the process of creating the electronic signature. The software must explain or report the signatures added to the data set. The software used to create the signature must act as a guarantor and have a system (with serial numbers, timestamps, etc.) to track where the signature was acquired and linked to it. If the software used does not meet these criteria, your electronic signature may not be valid.

Companies that use electronic signature systems believe they can streamline their processes. However, they need to make sure they use reliable software to manage electronic signatures.

About Author

Sally Hickman Green is a 30-year-old who enjoys blogging for best e signature app, internet marketing, and social media marketing. She is inspiring and generous in blogging. She has a post-graduate degree in Computer science.