Are electronic signatures legal? In most cases, yes.
For most everyday agreements, such as contracts, offer letters, leases and sales agreements, an electronic signature has the same legal effect as one in ink. Here's what the law says, what makes a signature hold up, and the exceptions to know about.
What the law says
- United States. The federal ESIGN Act (2000) says a signature or contract can't be denied legal effect just because it's electronic. Almost every state has also adopted the Uniform Electronic Transactions Act (UETA). New York has its own similar law.
- European Union. The eIDAS regulation says an electronic signature can't be refused as evidence in court just because it's electronic. It also defines "advanced" and "qualified" signatures for cases that need more.
- United Kingdom. The courts and the Electronic Communications Act 2000 accept electronic signatures for most documents.
- Elsewhere. Canada, Australia and many other countries have similar laws. Check the rules where you and your signers are.
What makes an electronic signature hold up
The details differ by place, but the same four things come up again and again:
- Intent to sign. The signer clearly means to sign, for example by clicking to sign rather than by accident.
- Consent to do business electronically. The signer agrees to use electronic records and signatures.
- The signature is tied to the document. It's clear what was signed, and the document can't be swapped afterwards.
- A record is kept. You can show the signed document and how it was signed, later on.
A signing service helps with all four. EaseSignature records a timestamp for each step (sent, signed and completed), keeps an audit trail for every document, and gives you the finished, signed copy to keep.
Documents that usually still need ink
Some documents are left out of the e-signature laws, or need extra formalities such as witnesses or a notary. In the United States the exceptions include:
- Wills, codicils and testamentary trusts
- Adoption, divorce and other family-law documents
- Court orders, notices and official court documents
- Notices of utility shut-off, foreclosure, eviction, or cancellation of health or life insurance
- Product recall notices and some documents that must travel with hazardous materials
Other countries have their own lists. Some property deeds also need a witness or notary.
Electronic signature or digital signature?
An electronic signature is any electronic way of showing agreement, such as typing, drawing or clicking to sign. A digital signature is a specific cryptographic technique that makes any later change to the file detectable. Most everyday business agreements need only an electronic signature.
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Questions, answered.
Are electronic signatures legally binding?
In most cases, yes. In the United States the ESIGN Act and UETA give electronic signatures the same legal effect as handwritten ones for most documents, and the EU (eIDAS), the UK and many other countries have similar rules. This is general information, not legal advice.
Is a typed name a valid signature?
It can be, if the person typed it intending to sign and the record links it to the document. A signing service makes that easier to show, because it records who signed and when.
Which documents can't be signed electronically?
Some documents still usually need a handwritten signature or special formalities, for example wills and certain trusts, some court and family-law documents, and certain legal notices such as eviction or utility cut-off notices. Rules vary by place, so check with your attorney if you are unsure.
What is the difference between an electronic signature and a digital signature?
An electronic signature is any electronic way of showing you agree to a document, such as typing or drawing your name. A digital signature is a specific cryptographic technique that locks a document so changes can be detected. Most everyday business agreements only need an electronic signature.
Will an e-signature hold up in court?
Courts in the United States, the UK and the EU regularly accept electronic signatures. What helps most is evidence of who signed and when, which is why a timestamped audit trail matters. For a specific dispute, ask a lawyer.
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