Electronic signatures

Legally binding

Electronic signatures are legally admissible in the USA and EU. The USA’s Electronic Signatures in Global and National Commerce Act was enacted in 2000.

The EU’s Electronic Commerce Directive was adopted and implemented into the UK’s Electronic Communications Act 2000. Section 7 states that in any legal proceedings, an electronic signature incorporated into or logically associated with a particular electronic communication shall be admissible into evidence in relation to questions as to the authenticity or integrity of the communication or data. In 2004 to the Consumer Credit Act of 1974 further facilitated the electronic signing of credit agreements.

For all these, the specific electronic signature technology is not defined by the Act or the Regulations themselves. Best practices should include an acknowledgement by parties that they are affirmatively agreeing to sign by an electronic signature. EchoSign automatically includes such an acknowledgment in every transaction.

Fast and convenient

The first time you try and sign a document electronically it may take you about half an hour, but only because the process is unfamiliar. But it is worth spending that half hour because all subsequent signatures take less than two minutes and are much more convenient than printing off a contract then faxing or mailing it.

Most important is the long-term effect as e-signature services provide an archive of all your contracts. Your lawyer will love this feature.

Good for the environment

Finally, it is worth remembering the environmental costs of paper signatures. It is not just the paper printing but also the courier services that are often used to allow tracking and speed. The fuel costs are considerable and avoidable. Switch to electronic signatures as soon as you can.