Electronic and Agreement

Electronic and Agreement: Understanding the Legalities and Advantages of Digitally Signed Contracts

Gone are the days when signing a contract meant physically signing a piece of paper in ink and sending it via mail or courier. In today`s world of digital communication, electronic signatures have become the norm. With the COVID-19 pandemic forcing businesses to shift to remote work, this trend has only accelerated. This has also raised questions about the legalities of electronic signatures and their validity as a legal form of agreement. In this article, we will take a closer look at electronic signatures and the legal framework surrounding them.

What are Electronic Signatures?

Electronic signatures are defined as the electronic process that is used to show a person`s intent to be bound by a contract or agreement. This process involves the use of some form of electronic communication, such as a computer, smartphone, or tablet, to sign a document. Electronic signatures can take many forms, including scanned signatures, typed names, or even a simple click to accept terms and conditions.

Electronic signatures have several advantages over traditional signatures. They are faster, more convenient, and can be executed from anywhere with an internet connection. They also eliminate the need for physical storage and reduce the use of paper, which is better for the environment.

Legal Framework for Electronic Signatures

The legal framework for electronic signatures varies from country to country. In the United States, the Electronic Signatures in Global and National Commerce Act (ESIGN) of 2000, and the Uniform Electronic Transactions Act (UETA) provide the legal framework for electronic signatures at the federal and state levels, respectively.

ESIGN and UETA make electronic signatures as legal and enforceable as paper signatures. They recognize that electronic communication is the equivalent of paper communication and that electronic signatures have the same legal effect as ink signatures. However, there are some exceptions to this rule, such as wills, trusts, and agency agreements, which require a signature in ink.

Challenges with Electronic Signatures

Despite the legal framework and the advantages of electronic signatures, there are still challenges that need to be addressed. One of the primary challenges is ensuring the authenticity and integrity of electronic signatures. With paper signatures, it is easy to verify the authenticity of the signature, as it is unique to the individual. However, with electronic signatures, this becomes more difficult. There is a risk that someone could pretend to be another person and sign a document fraudulently.

To address this challenge, electronic signatures must comply with certain technical requirements. These requirements include the use of digital certificates, encryption, and secure storage. They ensure that the signature is unique to the individual, that the document has not been tampered with, and that there is a record of the signing process.


Electronic signatures have become an essential tool for businesses in the digital age. They are fast, convenient, and cost-effective. However, it is important to understand the legal framework surrounding electronic signatures and the challenges that come with them. By complying with the technical requirements for electronic signatures, businesses can ensure that their contracts are legally binding and enforceable. Ultimately, electronic signatures provide a way for businesses to streamline their operations while still maintaining the legal validity of their agreements.