Agreement to use electronic signatures: Overview, definition, and example
What is an agreement to use electronic signatures?
An agreement to use electronic signatures is a formal agreement between parties that allows for the use of electronic signatures as a valid and legally binding method for signing contracts and other documents. Electronic signatures (e-signatures) are digital representations of a person's intent to agree to the terms of a document, typically created using a digital signature or an electronic system such as an e-signing platform.
The agreement to use electronic signatures acknowledges that the parties involved accept the legal validity of electronic signatures and agree to use them instead of traditional handwritten signatures. This is particularly useful for simplifying document execution, speeding up transactions, and reducing the need for physical paperwork, especially in digital or remote environments.
Why is an agreement to use electronic signatures important?
An agreement to use electronic signatures is important because it streamlines the signing process, making it faster, more efficient, and often more secure. It eliminates the need for physical signatures, which can save time, reduce paperwork, and lower costs associated with mailing or printing documents.
For businesses, using electronic signatures can improve workflow efficiency and enhance collaboration, particularly in situations where parties are located in different geographic locations. From a legal standpoint, e-signatures are recognized as valid in many countries, including the United States under the ESIGN Act and the UETA, and in the European Union under eIDAS regulations, provided certain conditions are met.
For individuals, agreeing to use electronic signatures provides convenience and flexibility, allowing them to sign documents remotely without the need for physical presence or traditional ink signatures.
Understanding the agreement to use electronic signatures through an example
Imagine two businesses entering into a partnership agreement. Instead of printing, signing, scanning, and sending documents back and forth, both parties agree in advance to use electronic signatures. They execute the contract using an e-signature platform where each party digitally signs the document. Both parties receive copies of the signed agreement almost immediately, without the delays associated with traditional signing methods.
In another example, a freelance designer and a client agree to use electronic signatures for their contract. The designer sends the contract to the client through an email with a link to a secure e-signature platform. The client reviews the terms and digitally signs the agreement, completing the process without needing to print or fax any paperwork.
An example of an agreement to use electronic signatures clause
Here’s how a clause like this might appear in a contract:
“The Parties agree that electronic signatures shall be considered as valid and binding as handwritten signatures. Both Parties consent to the use of electronic signatures for all documents related to this Agreement, including but not limited to contracts, amendments, and notices. The Parties further agree to use a secure e-signature platform to execute these documents.”
Conclusion
An agreement to use electronic signatures simplifies the process of signing contracts and documents by allowing digital representations of signatures to be legally binding. This practice enhances efficiency, reduces costs, and supports remote and digital transactions. For businesses and individuals, agreeing to use electronic signatures ensures that contracts and agreements are executed in a timely, secure, and legally valid manner, complying with relevant legal standards.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.