Legality of Electronic Signatures

E-Sign's electronic signature platform incorporates all the legal requirements worldwide, ensuring that your documents can be signed from anywhere in the world and are legally valid.

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eSign Legality Guide

Are Electronic Signatures Legal?

Electronic signature transactions are a legally recognized and binding method for nearly all business and personal document transactions within the US and around the world.

Legislative Requirements for electronic signatures worldwide

Advanced eSignatures

A legally binding advanced electronic signature must meet the following requirements:

  • It is uniquely linked to the signatory
  • It is capable of identifying the signatory
  • It is created using means that the signatory can maintain under their sole control; and it is linked to the data to which it relates in such a manner that any subsequent change in the data is detectable.

Qualified eSignatures

A legally binding qualified electronic signature must meet the following requirements:

  • It is created using a qualified signature creation device; and be based on a qualified certificate
  • It offers the highest level of trust through face-to-face or equivalent ID verification process
  • Data in electronic form which is attached to or logically associated with other data in electronic form and used by the signatory to sign
Legality of Electronic Signatures

United States of America

E-Sign's digital signature solution complies with the definition of an e-signature under the Electronic Signatures in Global and National Commerce (ESIGN) Act, the Uniform Electronic Transactions Act (UETA, 1999) The ESIGN Act (2000) addresses e-signatures and e-records, allowing for electronic signatures in all 50 states when federal law applies. It defines an e-signature as an electronic sound, symbol, process attached to or logically associated with a document and executed or adopted by an individual with the intent to sign and be legally bound.

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United Kingdom

Electronic signatures are legally recognized in the United Kingdom and are provided for in the Electronic Identification and Trust Services for Electronic Transactions Regulations in 2016, the Electronic Communications Act 2000. and the retained UK version of Regulation (EU) No 910/2014 of the European Parliament (also known as EIDAS).

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European Union

Regulation (EU) No 910/2014 on Electronic Identification and Trust Services for Electronic Transactions, commonly known as eIDAS, took direct effect in EU member states from July 1, 2016. It established a EU-wide legal framework for electronic signatures. E-Sign's digital signature solution is compliant with eIDAS and EU electronic signature technical standards. E-Sign is also compliant with GDPR.

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Australia

Electronic signatures are legally recognized in Australia and are provided for by the Electronic Transactions Act 1999 (ETA) and implementing regulations, the Electronic Transaction Regulations 2020 (ETR) at the federal level, as well as by each State and Territory. States and Territories also have their own electronic signature laws (Local ETA) which generally follow the ETA, but include different exemptions and limitations.

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New Zealand

Electronic signatures have been legally recognized in New Zealand since the Electronic Transactions Act (ETA) 2002. There aren’t any requirements for electronic signature types, therefore a Qualified eSignature won’t receive legal status.

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How eSign Complies with Electronic Signature Law

Unlike a handwritten signature, which is generally the same mark on every document, E-Sign’s digital signature is 100% unique to every document. The signer’s identity is established by:

  • Email Address
  • IP Address
  • Location
  • Time and Date Stamping
  • Web Browser and System Information
Secure Legal eSigning

Secure and Legal

eSign's Secure Digital Signature

eSign provides the following within its digital signature to ensure every document that is sent is secure and legally admissible:

  • Digital certificate authenticating all data and document interaction
  • Time and date stamping
  • Detailed document audit trail from inception to completion
  • Document integrity maintained and checked throughout the signature process
  • Secure storage of documents and data
  • Identification of users verified
  • Unique digital fingerprint created for every signed document
  • Unique signature fingerprint created for signatory
Safe Secure eSignatures

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Frequently Asked Questions

What industries commonly use electronic signatures?

Electronic signatures are widely used across various industries, including:

  • Real Estate: For signing contracts and finalizing transactions remotely.
  • Legal: For executing agreements, affidavits, and other legal paperwork.
  • Healthcare: For patient consent forms, electronic prescriptions, and maintaining medical records.
  • Financial Services: For processing loan documents, opening accounts, and managing compliance paperwork.
  • Human Resources: For handling employment contracts, onboarding paperwork, and employee consent forms.

Are electronic signatures legally binding?

Yes, electronic signatures are legally binding in numerous countries. In the United States, they are recognized under the ESIGN Act and the UETA, while in the UK and European Union, they are governed by the eIDAS Regulation. These laws ensure that electronic signatures carry the same legal validity as handwritten signatures, as long as specific requirements are fulfilled.

What makes an eSignature legal and enforceable?

For an electronic signature to be legally valid and enforceable, it must satisfy several key conditions:

  • Intent to sign: The individual must demonstrate a clear intent to sign the document electronically.
  • Consent to use electronic signatures: All parties involved must agree to conduct the transaction using electronic signatures.
  • Association with the document: The eSignature must be clearly linked or associated with the specific document or transaction being signed.
  • Record retention: The signed document must be securely stored and easily accessible for future reference or reproduction.

Can I sign a PDF document electronically?

Yes, signing PDF documents electronically is simple with the help of eSignature platforms like eSign. eSign directly integrates with PDF readers, allowing you to securely sign, track, and manage signed PDF files with ease.

Can I use eSignatures for all types of documents?

While eSignatures are accepted for most business and legal documents, there are exceptions. In the U.S., documents like wills, trusts, and certain court filings may still require a physical signature. It’s important to check local regulations and consult a legal professional if you’re uncertain about whether an electronic signature is valid for a specific document.

How do I verify the validity of an eSignature?

An eSignature’s validity can be confirmed through several methods:

  • Audit trails: Many eSignature platforms offer detailed logs that track actions during the signing process, including timestamps, IP addresses, and email confirmations.
  • Certificate-based digital signatures: Some eSignatures are accompanied by a digital certificate from a trusted third-party provider, ensuring authenticity.
  • Authentication: Signers may be required to verify their identity through methods like email, phone verification, or biometric authentication.

Can I use an eSignature for international business transactions?

Yes, eSignatures are widely recognized for international business transactions. Many countries, including the U.S., EU member states, Canada, and Australia, have laws that validate and enforce electronic signatures in cross-border agreements. However, it’s essential to check the legal requirements in both countries involved to ensure compliance.

Are electronic signatures admissible in court?

Yes, electronic signatures are typically admissible in court if they meet the legal standards, such as those outlined in the ESIGN Act or eIDAS. Courts usually consider factors like the signer’s intent, consent to use eSignatures, and the security measures used to authenticate and validate the signature.

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