Is your business considering switching to a digital document workflow and unsure about the legality of digital signatures? You’ve probably got several questions concerning what is and isn’t considered legal.
You must ensure you follow the correct procedures and protocol regarding digital document signing.
In this article, we’ll cover everything you need to know about legal signatures, including:
Let’s get into it.
Put simply, a legal signature is a notation that signifies an individual’s acceptance of the terms and conditions a contract outlines. It’s a mark placed on a document, making it legally binding — held accountable in the court of law.
An acceptable, legally binding signature can be as simple as the individual putting a mark on the document. The law doesn’t dictate what the signature looks like concerning its shape. Most people’s signatures are messy and inconsistent, appearing like scribble.
As long as they express the notation for a person’s consent, it’s considered legally binding. In many cases, people will write out their names clearly and legibly.
It’s also worth mentioning that a contract can be legally binding even if there’s no actual contract and legal signature. If there’s sufficient evidence an oral agreement exists, its terms and conditions can be legally enforced.
There are many different circumstances when a legal signature provides significant value. All important business documents will need to have legally binding signatures. Here are some great examples:
As a business, you’re always trying to stay one step ahead of your competitors; NDAs can help you. Non-disclosure agreements ensure anyone who comes into contact with your organization is legally obligated to keep sensitive information private.
Legally binding signatures ensure that former employees, contractors, or consultants are issued NDAs, guaranteeing your trade secrets remain secret.
An organization is only as good as its supply chain; vendor/supplier contracts provide safety and security in this relationship. The document outlines what you’re buying, how much you’re purchasing, how frequently you’ll receive it, and what it will cost.
A legal signature gives you peace of mind, knowing that the law protects your agreement.
Like all businesses, you have a constantly changing workforce: people are leaving and joining. The better you can onboard new team members, the more value they’ll provide.
All the paperwork associated with hiring a new employee will use legal signatures. These legally binding documents will set the terms and conditions of their employment.
The law governing the legality of electronic signatures in The U.S. is the ESIGN Act, which was passed in 2000. It was brought in to address the digitizing of business and document processes. The law gave eSignatures the same legal status as written signatures.
This means electronic signatures may be used as evidence in court. They can also establish other laws that require a signature or signatures. Documents that are electronically signed are protected and legally required to be enforced in court.
Because of the uniqueness and nature of electronic signatures, the ESIGN Act has various requirements. These are concerns that “wet” hand-drawn signatures don’t have to address.
For an electronic signature to be legally binding, it must meet several requirements; these include:
Signaturely is an electronic signature tool allowing you to sign documents online. With it, you can create your own legally binding digital signature, typed or drawn. It’s a web-based app, so it doesn’t matter what device or operating system you use.
To make electronic signatures legal with Signaturely, follow these steps:
Start by heading to the Signaturely website and logging in to your Signaturely account. If you don’t have one, you can create one for free.
Next, you’ll want to upload your document. To do this, start by selecting “Sign” on the sidebar to the left. Then, select the correct “Who needs to sign?” option; there are three to choose from:
After doing so, you’ll be sent to a document preparation page; scroll down and attach your document.
Don’t forget to add the names and email addresses of individuals who need to sign the document.
Once that’s complete, select the “Fill Out & Sign” button at the bottom of the page.
You’ll then be sent to an editor where you can add signatures, text, and other things. This is where you can add a legal signature to your document.
After you’ve added all the necessary information to your document, press “Send” to complete it.
You have now signed a document electronically and legally. As you can see, Signaturely makes it an easy, effortless process.
Signaturely offers three different pricing plans:
The personal plan costs $25 USD per month or $20 per month if you commit for a full year. With this option, you get unlimited signature requests and one template. However, you don’t get team management and custom business branding features.
The business plan costs $50 USD per month or $40 per month if you commit for 12 months. This is the most expensive plan Signaturely offers, so you get all the functionality and features the tool offers.
The modern digital landscape has allowed businesses to improve the efficiency of several essential workflows. Organizations have replaced pens, paper, and fax machines with digital signatures, PDFs, and emails.
But why, exactly, has this shift occurred? What are the benefits of legally binding electronic signatures?
Legal signatures come in several different types; we’ll list them below:
Fax/scanned signatures are images of physical signatures found on documents intended to be physically signed. If there are multiple contract parties, every time one physically signs, they’ll scan and send the signed document to the next party.
Electronic signatures are made digitally, typically with a computer or smartphone. Thanks to the ESIGN Act, electronic signatures are considered legal, just like physical ones.
Digital signatures are electronic signatures with added security measures, such as tamper evidence and independent verification.
Physical signatures are ones that you sign yourself in person, usually with a pen. When a physical signature takes place, a form of verification usually happens. This may be somebody witnessing your signature and providing their signature to the document as well.
For more important documents, a state-certified notarization might be required. Examples include official government documents, like birth certificates or mortgage agreements. These documents can only be physically signed; other legal signatures aren’t suitable.
A signature can be legally binding using an eSignature tool like Signaturely. With it, you can create a typed or drawn digital signature that can be added to documents.
Can I make a signature legally binding for free?Yes, you can make a signature legally binding for free. An eSignature tool like Signaturely will allow you to sign documents digitally.
Are electronic signatures legally binding?Yes, eSignatures are legally binding, thanks to the ESIGN Act passed in 2000.
Are typed signatures legally binding?Yes, typed signatures are legally binding. eSignatures can come in several forms, such as being typed or drawn with a cursor or touchpad.
Can a contract signature be considered legal if not in cursive?Yes, a contract signature is legal, even if it isn’t cursive. The law doesn’t dictate whether or not a signature is legal based on its shape.
Do I need electronic signature software to make a signature legal?No, you don’t need eSignature software to make a signature legal, but it’s the easiest way to do so.
As the business landscape has become increasingly digitized, signing and processing documents online has become standard. This shift from pen, paper, and fax machines to PDFs and emails has raised many legality questions.
We hope the information in this article has provided you with the answers you seek. To recap, we covered the following:
Are you looking for an easy way to create 100% legally binding electronic signatures? Try Signaturely for free today.
Work faster and more efficiently with secure and legally binding eSignatures. Create your free account today!
