Is Electronic Signature Actually Legal?

Is Electronic Signature Actually Legal?

In the digital age, the way we conduct business has evolved significantly. One of the revolutionary changes has been the adoption of electronic signatures. However, despite the widespread use of electronic signatures, there is still some confusion and skepticism regarding their legality. In this article, we will explore the legal standing of electronic signatures and how they hold up in a legal context.

Understanding Electronic Signatures

An electronic signature, often referred to as an e-signature, is an electronic signal, symbol, or process attached to or logically associated with a contract or other record. It is used by a person with the intent to sign the record. Electronic signatures can take many forms, such as a typed name at the end of an email, a digital image of a handwritten signature, or a biometric hand signature created with a stylus and tablet.

The Legal Framework

Many countries around the world have established legal frameworks that recognize the validity of electronic signatures. In the United States, the Electronic Signatures in Global and National Commerce Act (ESIGN) and the Uniform Electronic Transactions Act (UETA) have confirmed that electronic signatures carry the same weight as traditional handwritten signatures.

Similarly, in the European Union, the eIDAS regulation (EU No 910/2014) provides a clear set of standards for electronic identification and trust services for electronic transactions, including electronic signatures. Under eIDAS, electronic signatures cannot be denied legal effect solely on the grounds that they are in electronic form.

Different Types of Electronic Signatures

Not all electronic signatures are created equal. They are generally categorized into three types:

1. Simple Electronic Signatures (SES): These include typed names, email signatures, or any basic form that indicates acceptance.
2. Advanced Electronic Signatures (AES): These are uniquely linked to the signatory, capable of identifying the signatory, and linked to the data in a way that any subsequent change is detectable.
3. Qualified Electronic Signatures (QES): These are a specific subset of advanced signatures that have been created by a qualified signature creation device and based on a qualified certificate for electronic signatures.

The level of legal assurance and the complexity of the technology used increase from SES to QES.

Are Electronic Signatures Enforceable in Court?

Yes, electronic signatures are generally enforceable in court, provided they meet the relevant legal requirements. For instance, the signature should be attributable to the person purported to have signed the document, and the intent to sign and agree to the contents of the document should be clear.

However, the admissibility of an electronic signature may be influenced by the type of document being signed and the jurisdiction in question. Certain documents, such as wills or court orders, may have stringent requirements that must be met for an electronic signature to be legally binding.

How to Ensure the Legality of Your Electronic Signature

To ensure the legality of your electronic signature, it is crucial to use a trustworthy e-signature solution that complies with the relevant laws and regulations. Additionally, it's important to:

• Verify the identity of all parties involved in the signing.
• Ensure all parties have a clear intent to sign and are fully informed about the contents of the document.
• Maintain a secure and verifiable audit trail that records the signing process.
• Use an electronic signature that is appropriately secure for the transaction at hand.

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For European SMEs looking for a seamless way to create contracts, sign them electronically, and manage documents, Enty's contract services offer the perfect solution. With Enty, there's no need for legal expertise—you can create contracts in minutes and choose from tens of methods to e-sign them.

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Final Thoughts

Electronic signatures are a legal and efficient way to execute agreements and can help streamline business processes. While they are subject to certain requirements, as long as these are met, electronic signatures hold legal weight and are widely recognized across various jurisdictions. It’s important to use trusted services that ensure compliance with the law, such as those provided by Enty.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. For legal specifics related to electronic signatures, consult with a legal professional or refer to the