Are electronic signatures legal?

The simple answer is a resounding yes.

Here are a few common questions our customers ask us time and again-

Question- Are the laws and regulations surrounding E-Signatures still unclear? Answer- No, they are now very clear and well established.

• On June 30, 2000, Congress enacted the Electronic Signatures in Global and National Commerce Act ("ESIGN" or "the Act"), to facilitate the use of electronic records and signatures in interstate and foreign commerce by ensuring the validity and legal effect of contracts entered into electronically. http://www.ftc.gov/os/2001/06/esign7.htm
• In July of 1999, the National Conference of Commissioners on Uniform State Laws approved and recommended the Uniform Electronic Transactions Act (UETA)- the purpose of the UETA is to remove the barriers to electronic commerce by validating and effectuating electronic records and signatures. http://www.ictparliament.org/CDTunisi/ict_compendium/paesi/usa/USA23bis.pdf
• The amount of case law in the United States and abroad has been growing steadily over these last few years, and electronic signatures have been upheld time and again in the court of law.
• The UCC (uniform commercial code) recognizes the use of electronic contracts as those similar to a wet ink signature.

Question- Do E-Signatures lead to more risk? Answer- No

• An E-Contract actually has more traceability and more enforceability with electronic signatures than there are in place with wet ink signatures. A document, for example, can be signed by just about anyone, and returned, so there is actually less verification.
• Electronic processes actually increase visibility within the organization to show who, what, when, where and why.

Question- Is a contract management solution all you need to implement an e-signature solution. Answer- It depends...

• Most contract management systems are restricted to within the company and even then, departmentally. Your electronic signature system must have the flexibility and portability to operate outside of these internal walls for easy access by your customers and business partners.
• Also, a robust electronic signature system should have a contract management aspect built into it that includes expiration management, exposure analysis, storage and alerting capabilities.

Question- I have heard that E-Signatures are only a viable option for low-risk, high volume transactions, is this true? Answer- False

• E-Signatures are accepted at all levels and across virtually all industries, from government, to mortgage and real-estate all the way to credit card providers.

Simply put, E-contracting is quickly becoming the preferred method of legally binding agreements because it is in fact better and more secure than a traditional wet-ink document.