Frequently Asked Questions

Are electronic signatures legal?

Electronic signatures are legal to use in many countries around the world, including the US, Canada, the UK, and several other European countries, India, Japan Egypt and more. This means that a document that has been signed electronically can be admitted as evidence in a court of law, if needed.

What is the legal definition of an electronic signature?

An electronic signature is loosely defined by the E-SIGN Act as “an electronic sound, symbol, or process attached to, or associated with, a contract or other record and used as the legal equivalent of a written signature.”

Are electronically signed documents just as legally enforceable as hand-signed ones?

Electronically signed documents should have the same five characteristics as a hand-signed document to ensure they are secure, compliant and auditable:

1. The signer must intend the signature to have the same force and effect as a signature affixed by hand.
2. The signature must be unique to the person using it.
3. The signature must be verifiable as belonging to the user.
4. The signature must be under the sole control of the person using it.
5. The signature must be attached or linked to the document in a way that authenticates the integrity of the electronic signature and document contents.

Has an electronically signed document ever been challenged in court?

There have been a number of cases in the U.S. where electronic records, signatures and transactions have been admitted as evidence in a court of law. That said, it is not the technology, or the level of security, that dictates whether or not electronic records and signatures are admissible in court. Rather, it is how well the process established the intent to sign. The following are examples of cases involving electronic signatures and records.

• Shattuck v. Klotzbach, Civ. Act. No. 01-1109A (Superior Ct., Mass., December 11, 2001)
• Hotmail Corporation v. Van Money Pie Inc., et al., C98-20064, 1998 WL 388389 (N.D. Ca., April 20, 1998)
• Vinhnee v. American Express, 336 B.R. 437 (9th Cir. BAP 2005)
• Campbell v. General Dynamics Government Systems Corp (321 F.Supp.2d 142 Mass. 2004)

Do compliance requirements differ from state to state?

Yes and no. The federal Electronic Signatures in Global and National Commerce law and the state Uniform Electronic Transactions Acts (UETA) are similar in substance, and together enable the use of electronic signatures in commerce throughout the US. That said, there may be additional regulations, or compliance requirements, that apply to certain processes (like truth-in-lending disclosures, or protecting the privacy of medical records). But these requirements exist for paper processes as much as for electronic ones.

Bringing a process online without compromising compliance will be one of your challenges. Experience shows that with the right solution, e-signatures not only maintain compliance; they improve it. Increased visibility into your processes and the ability to enforce workflow rules are the natural results of straight through processing. For example, a consumer is physically unable to e-sign an agreement without first reviewing and accepting all disclosures.

Are there any special requirements for presenting legal disclosures over the web?

As with paper transactions, an organization must still prove that it presented consumers with the government-mandated disclosures in the required format and within the required timeframe. In addition, the merchant must be capable of demonstrating that the consumer has consented to receiving disclosures electronically, and that he/she can access the information in the electronic format provided.

Delivering disclosures via your Web site requires more than simply posting disclosures on a Web page. Evidence of the entire disclosure delivery process, including how the disclosure was rendered to the consumer's browser, and which actions the consumer took, must be securely stored in a single audit trail.