An electronic signature (e-signature) is a way to sign legal documents digitally using a computer. Similar to a handwritten signature, it enables the signer to confirm their agreement on contracts or legal documents without the need for a physical pen.
Electronic signatures are often seen as superior to traditional ink signatures because they enable a person to instantly sign documents from anywhere in the world. There’s no need to print the document or use any physical resources—just software, an internet connection, and a computer. This eliminates the need for physical presence or paper documents entirely.
There are three primary types of electronic signatures:
Electronic signatures can be more secure than traditional ink signatures because many providers offer different levels of authentication to prevent forgery. While it can be difficult for people to distinguish between real and fake signatures, computers can detect and reject forgeries using digital ciphers and certificates. This makes electronic signatures an effective way to protect against fraud.
Users of electronic signatures typically rely on specialized software that allows them to easily add a signature to documents, which the recipient can then decode and verify. Usually, the process involves downloading the software, uploading the document, and simply clicking “sign”.
Any electronic process or symbol directly linked to a record that a person intends to sign can be considered an electronic signature.
Electronic signature providers use PKI (Public Key Infrastructure) protocols to ensure that documents are signed by their intended recipients. When a document is signed with a private key, the recipient uses a public key to verify the authenticity of the signature. This process adds an extra layer of security to the signing process.
An electronic signature includes an identification code and password used together to sign a document. It is designed for use solely by the owner, with some systems incorporating biometric data to authenticate the signature.
Electronic signatures are legally binding and hold the same authority as traditional ink signatures. The E-Sign Act, enacted in 2000, established guidelines for electronic signatures, giving them the same legal status as handwritten signatures. However, electronic signatures cannot be used for last wills and testaments.
Many countries accept electronic signatures as legally binding, but one should still consult with a legal practitioner before e-signing in an unfamiliar country. Most of the laws surrounding electronic signatures are pretty standard, but there are still specific provisions that apply to certain locales.
Yes, a typed name can serve as a valid signature from a technical standpoint. As long as the typed name appears within the signature line of a document, it qualifies as a legal electronic signature. There is no strict requirement that a signature must resemble traditional ink signatures. As long as the context is appropriate, any mark within the signature line can be considered an electronic signature.