In this digital age, a lot of people enter into legal agreements using electronic means. It can be as simple as accepting the terms and conditions of a service or as complicated as signing a business deal. By checking “I agree” to the terms and conditions of new software or clicking “I accept” in the cookie prompt on a new website, you have entered into a legal agreement with the software provider or the website manager.

Bank transactions that could only be executed by signing off on a bank mandate, such as cheque and withdrawal slips, can now be authorized electronically. It can be done through single or multiple stages of verification and will possess the characteristics of an actual transfer done by signing a physical cheque.

Legal Limitations to Electronic Signatures 

As much as electronic consent is legally binding for establishing a legal basis for some transactions, there is still a question about the acceptability of electronic signatures. This is especially true when you are dealing with sensitive documents. These documents may include wills, deeds, and other corporate documents associated with large risk. What are the legal risks associated with electronic signatures? What are the legal considerations for using electronic signatures?

Legal Risk

Electronic signatures have a measure of risk attached to them in many cases. This is because an electronic form of the original identity can easily be copied, duplicated, shared, manipulated, and used by a party other than the one associated with the contract. However, many argue that similar risks exist with regular signatures. Cheques and other legal documents also have a history of being copied and forged, long before the birth of electronic signatures.

Legal Considerations 

To assess whether electronic signatures are legally binding, you must evaluate them based on a similar scale to that on which wet signatures are acceptable. To do this, you must review the validity of the signature based on the following considerations:

• Can such an electronic signature serve as the basis for a commitment that is legally binding?
• Is there evidence that the signatory was committed to signing such a document?
• Is there evidence that the electronic signature originated from and can be used only by the signatory?
• Is there a trail of evidence leading up to the signing of the document that reveals that the signatory considered, reviewed, and expressed a commitment to sign electronically?
• Is the signature applied to the document consistent with signatures on other legal documents signed by the signatory?

Considering these questions, a person can create legal backing for electronic signatures. As a business owner or someone who is trying to complete a business transaction, you need to take the validity of the electronic document into consideration. It also helps to read esign software reviews to choose a suitable option for your business.  

Conclusion 

Finally, in many parts of the world, electronic signatures still cannot be used for highly sensitive documents such as wills, real estate purchases, and bank transfer transactions above a specific limit. However, as a more secure and effective electronic signature or eSign options are provided, we will most likely see a global adoption of electronic signatures.