Fax signatures: Overview, definition, and example
What are fax signatures?
Fax signatures refer to a signature that is sent via fax as part of a document transmission. In this process, a person signs a document, then scans or faxes the signed document to the intended recipient. The signature on the faxed document may be a handwritten signature that was initially signed on paper or it could be a digital representation of the signature. While fax signatures were once common for document approval or agreements, they are now less frequently used due to the availability of electronic signature technology.
Fax signatures are typically used when a quick response is needed, or when parties are in different locations and cannot physically exchange documents. However, legal acceptability of fax signatures can vary depending on jurisdiction and the nature of the agreement.
Why are fax signatures important?
Fax signatures are important because they provide a way for parties to quickly and securely sign and exchange documents without needing to be physically present. In situations where electronic signatures are not available or practical, faxing signed documents allows for faster processing and agreement on terms.
While fax signatures have largely been replaced by more secure and efficient electronic signatures in many contexts, they still hold legal validity in certain situations, particularly for urgent contracts or agreements where immediate action is needed.
Understanding fax signatures through an example
Imagine two businesses are entering into a supply agreement. Due to time constraints, they need to sign and return the contract quickly. One company’s authorized representative signs the document, then faxes it to the other company. The recipient receives the faxed document with the original signature, and both parties can consider the agreement officially signed, even though the physical exchange of signed documents did not take place in person.
While this process is not as modern as digital signatures, it was once a commonly accepted method of signing time-sensitive agreements when parties were not in the same location.
Example of a fax signature clause
Here’s an example of how a fax signature might be referenced in a contract:
“The Parties agree that the use of a faxed signature shall be considered as legally binding as an original signature on a hard copy of this Agreement. Any document executed and faxed by one party to the other shall be deemed to have the same effect as if signed in person.”
Conclusion
Fax signatures are an older method of signing documents, where a signed document is transmitted via fax. While they are less commonly used today due to advancements in digital signature technology, fax signatures still serve a purpose in certain circumstances where time-sensitive agreements are necessary. For both businesses and individuals, understanding the implications and legality of fax signatures is important for ensuring that agreements are valid and enforceable in the context of urgent or remote document exchanges.
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.