An e-signature doesn’t just refer to signing an electronic pen pad at a store or pasting your signature into online documents; electronic signatures can refer to entering a PIN number for a debit card or clicking “I agree” when logged into an online account. Such consent is just as legally valid as pen and ink, and such contracts will hold up in court. What’s important is that the electronic signature or token is unique to you (whether it’s a written signature, a PIN number, email address, or what have you). The U.S. Federal E-Sign Act defines an electronic signature as an “electronic sound, symbol, or process used by the signer.”
The Business of the E-Signature
The efficiency of moving to paperless processing has helped many industries expedite the contract-signing process. Businesses can now spend more time making money and less time pushing paper, paying for postage, and filling filing cabinets. Most methods of e-signing work seamlessly with common business tools like Microsoft Word, Google Docs, Dropbox, and more. Bye-bye, fax machine.
Consenting to something electronically (especially when your bank account is involved) makes many people nervous, but e-signing is potentially more secure. The pharmaceutical industry is capitalizing on e-signatures tremendously due mostly to shorter approval times for prescriptions. For a monthly service charge, many apps allow you to store your signature and simply paste it into documents that need signing.
Is Your E-Signature Safe?
In contracts where authenticity is likely to come into question (think wills and promissory notes), it’s important to keep original copies handy. Such documents often need to be signed in the presence of witnesses and thus should never be e-signed in the first place. On the other hand, signing a rental contract on an iPad, for example, might make you nervous, but it’s really no different than signing paper; the difference here is that the contract can be emailed to you quickly.
What’s important is that documents you e-sign aren’t changed afterward. Because of this risk, you should always get a printed copy. Make sure a copy is emailed to you and that something like giving up a limb hasn’t been added to the contract. Keeping these items in your email inbox can help keep them dated. For high-value transactions (such as real estate contracts), e-sign services like DocuSign and Adobe EchoSign are considered most secure and follow the letter and intent of the E-Sign Act.
Electronic contracts save time and paper. Sometimes doing something electronically can be nerve-wracking, so keep your computer secure and only shop from stores and vendors you trust. If you’re hesitant about signing your realtor’s iPad, it can’t hurt to ask for a paper contract — but do think about all the trees you’re killing.
