Legal compliance for electronic signatures
When an electronic signature on a contract or document is questioned, it must pass several checks before it can be recognized in court. Requirements may vary depending on the law, even for documents without a signature (telex, fax…).
Steps in the United States
- Provide information on the legal validity of the electronic signature, hardware/software requirements, signing options, and costs (if any);
- Authenticate the parties to identify business risks and requirements;
- Present the entire document for review (parties may need to provide data);
- Require parties to confirm voluntary signing of the document;
- Ensure the document has not been altered since signing;
- Provide original legal documents for record keeping.
Forgery (signature or consent) is a key concern. While courts assume forgery is impossible, electronic signatures are not entirely immune. Businesses often verify electronic signatures through other means, such as direct phone calls or relying on traditional relationships, not solely electronic documents.
Note: Common electronic signatures are not digital signatures as they lack cryptographic guarantees and integrity checks. They may have legal validity in specific cases.
Source: Admin compilation
