As technology advances, so does the way we conduct business and sign contracts. Traditionally, contracts were signed in person with a pen and paper. Nowadays, electronic signatures have become commonplace and are recognized by law.
When entering into a contract with another party, it is important to have a clear understanding of the type of signature that will be used. One common provision found in contracts is « the parties agree that this agreement may be electronically signed. »
What does this mean? Essentially, it means that the parties involved have agreed to sign the contract electronically, rather than using a physical signature. Electronic signatures can take many forms, such as digital signatures, scanned signatures, or even a typed name in an email.
There are many benefits to using electronic signatures. They are more efficient and can save time and money by eliminating the need to print, sign, and mail a physical copy of the contract. Electronic signatures can also speed up the signing process, as parties can sign the document from any location with an internet connection.
However, it`s important to note that electronic signatures are subject to certain legal requirements. In the United States, electronic signatures are governed by the Electronic Signatures in Global and National Commerce Act (ESIGN) and the Uniform Electronic Transactions Act (UETA). These laws establish the legal validity of electronic signatures and provide guidelines for their use.
To ensure that an electronically signed contract is legally binding, there are a few key considerations that should be taken into account. First, both parties must agree to the use of electronic signatures and consent to conducting business electronically. Additionally, adequate measures should be taken to verify the identity of the signatories and ensure the integrity of the document.
Overall, including a provision in a contract that allows for electronic signatures can be a convenient and efficient way to do business. However, it`s important to understand the legal requirements and take appropriate measures to ensure that the electronically signed contract is legally binding.