Electronic signatures: Overview, definition and example
What are electronic signatures?
Electronic signatures (e-signatures) are digital marks or symbols that are used to indicate agreement or approval on electronic documents. These signatures serve as a legally valid alternative to handwritten signatures and can be used in contracts, forms, and other official documents. They can take various forms, including scanned images of handwritten signatures, typed names, or clicks on an "I agree" button.
Why are electronic signatures important?
Electronic signatures are important because they provide a fast, secure, and convenient way to sign documents without the need for physical paperwork. They streamline the process, making it easier for businesses and individuals to complete transactions quickly and efficiently, especially when parties are located remotely. E-signatures also help reduce paper usage and the logistical burden of printing, mailing, and storing physical documents.
For businesses, adopting electronic signatures can save time, reduce costs, and increase the efficiency of contract execution.
Understanding electronic signatures through an example
Imagine a company in the US that needs to finalize a deal with a supplier in Europe. Instead of mailing a physical document for a signature, both parties can use an electronic signature platform to sign the contract online. The system records each signature, along with a time stamp, ensuring the document’s authenticity and the agreement of both parties.
This process is faster and more secure than traditional methods, as it eliminates delays and ensures that both parties have the same version of the signed document.
An example of an electronic signature clause
Here’s an example of how an electronic signature clause might appear in a contract:
“The parties agree that this Agreement may be executed by electronic signature, which shall have the same force and effect as an original handwritten signature.”
Conclusion
Electronic signatures provide a modern, efficient way for businesses and individuals to sign documents quickly and securely. They offer significant benefits, including time savings, cost reduction, and improved convenience. Understanding how electronic signatures work ensures that businesses can take full advantage of their legal validity and streamline their contract processes.
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.