Electronic signatures have received a lot of attention. We’d like to present a brief review of e-signatures and what makes them legal to use in this essay.

Everything in the modern world has been digitalized over time. Everything is digital today, from online shopping to the automation of complex business tasks, and it is also the building block of our future. Electronic signatures, often known as e-signatures, are becoming becoming more prevalent.

However, because it looks to be simple to sign a document online, many people are concerned about the legality of e-signatures. Is electronic signature legally binding?

The first thing you must understand is what an e-signature is. Signing documents online is similar to signing documents in person, except that e-signatures are multi-dimensional. There are numerous options available to you.

You may use an e-signing program that allows you to sign a document with a mouse click, or you could draw your signature on a digital document with a mouse. 

The appearance of such a signature on a document may or may not confer (stronger or weaker) legal standing, depending on a variety of factors, which are discussed further in the guide.

Legal Criteria for e-signature

The Electronic Signature and Records Association Act of the United States provides that an electronic signature is only legal if all parties agree to use it instead of more traditional methods to obtain consent.

In general, legally binding e-signatures must include the following:

  • Show that the signer is who they claim to be.
  • Prove the signer’s intent to sign electronically. Giving the signer the option of signing on paper and allowing them to select is the best approach for doing this.
  • The signer’s willingness to sign is demonstrated (e.g., there is an option to not agree, such as a “cancel” button).
  • The validity of the signer can be independently verified. This frequently indicates the existence of an email trail, timestamp, cell phone number, and IP address. Two-step identification may also be useful for attribution purposes here.

Electronic signature laws by state, if they meet all of the above criteria. However, there are some instances where e-signature cannot be legally recognized.

E-signatures are not utilized in many countries and jurisdictions for important ceremonies and documents such as birth or death certificates, divorce certificates, and adoption papers. 

Wet signatures and a notary or witnesses are frequently required in these cases. If the signer is not computer-literate, e-signatures are likewise denied.

The following are the fundamental criteria of a legally binding e-signature. While this overview is based on US legal standards, most of the ideas may be extended to e-signatures in other regions of the world, which we will look at in depth in the following section.

1. Validity: Electronic signatures and records have the same legal value as traditional paper and ink partners. The fact that a signature was captured electronically is not enough to make it invalid.

2. Consent: The individual signing must give their permission to use an electronic signature. That implies the company must provide them with specific disclosures before they sign.

3. Intent: The individual signing an e-signature must intend to sign the document. They must agree to the contents of the paper and fully understand the significance of their signature.

4. Recording: An e-signature must be accompanied by evidence that it is an electronic signature rather than a wet signature.

5. Data integrity: Documents that have been e-signed must be kept secure from tampering or unintentional data loss.

Electronically signed documents are generally accepted in the United States. This includes business-to-business, business-to-consumer, and consumer-to-consumer transactions, as well as interactions between the government and enterprises or individuals. 

Several court cases have confirmed the dependability of e-signatures, enshrining them in case law. In the United States, e-signatures are not accepted in a few situations. In certain circumstances, signatures must be in ‘wet ink’ or legally notarized.


To summarize, understanding what is required for legally enforceable electronic signatures is critical in today’s digital world. Individuals and organizations can secure the accuracy and legality of their electronically signed papers by following these guidelines. 

Consent, intent, identity verification, and a dependable electronic signature platform all play important roles in determining the legal validity of electronic signatures. 

As technology advances, remaining current on developing legislation and best practices in this industry will be critical for ensuring the integrity of electronic transactions and documentation.

By Zubair Pateljiwala

I work at Data Service Solutions as a QuickBooks certified professional. If you are facing any errors or issues with QuickBooks, you can ask any queries about it. For asking your question, call +1-(855)-955-1942.

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