It has never been more important for contracting parties to be able to execute an agreement without being in the same room. Fortunately, executing a commercial transaction online is becoming more efficient and secure as the law continues to embrace technological advances, including electronic signatures (or e-signatures). Although e-signatures have gained increasing acceptance as a quick, efficient way to enter into a legally binding agreement, they should not be taken lightly. For example, e-signatures:
- Are only appropriate for transactions where each party has agreed to conduct the transaction electronically.
- Are not appropriate for certain types of legal documents, such as certain transfers of rights in real property and wills or testamentary trusts.
- Must be logically associated with a contract or record and executed with intent to bind.
- May include a typed name in an email or text message, or the click of an online button in certain jurisdictions and under certain circumstances.
If you have questions about how your company uses electronic signatures, or need your current contracts re-written to accommodate electronic signatures, just give us a call. We’re happy to help!