When many people think of electronic signature tools used by firms seeking a secure, paperless, contract workflow, the first question they often ask is, “how do they know who signed it.” This is an old way of thinking from people who often resist technological change. I think forgery suspicion and lack of understanding are primary reasons that many small firms have yet take advantage of this time/expense saving eSignature technology.
The real question is, “how do you confirm who signed handwritten signatures?” This includes signature stamps or images of your real signature pasted into a document. I’m sure many people have signed documents for their spouse or their boss. I guess in order to confirm who actually signed it, you could hire an expensive scribe expert to compare signatures.
Upon mention of e-signatures, many may think of the process they go through at a department store when they sign for a credit card purchase. After swiping the card, they pick up a gadget that looks like a pen and make their mark on an electronic pad confirming their intent to buy. Even this process may have seemed strange 30 years ago, but we now know it is no different than signing your name with ink on paper. They are the same because the commonality between all signatures is threefold:
- You must have access to the document
- With the ability to make your mark
- Confirming your intent to sign
Hundreds of years ago, people would use stone chops and wax seals to make their mark and confirm their intent. Today, the Federal E-Sign law and subsequent state UETA laws proclaim that contracts and electronically signed documents cannot be denied based solely on this medium.
Benefits of e-Signatures
e-Signatures are nothing more than electronic substitutes for instances when handwritten signatures are impractical. If you do business with people outside the four walls of your office, then eSignatures enable you to close deals in minutes online, without spending money on postage and without waiting for clients to drive to your office to sign in person.
e-Signatures also provide an added level of security by enabling documents to remain in an encrypted environment, rather than floating around the office for faxing and mail packaging. This helps ensure client confidentiality and privacy, and may even help your company comply with regulatory standards.
If you’re the suspicious type who doesn’t think you can confirm who signed electronic documents, take a look at the last signed contract you received by mail or fax and ask yourself, “could this be my client’s paralegal’s, secretary’s, or spouse’s signature?”
Quality e-signature services require a PIN be typed before signing; the same requirement banks use to allow people to take money out of an ATM machine. They also track the email address the e-signature request was sent to, and the date and time it was signed. If this isn’t enough, an IP address can also be obtained from the person signing the document.
It may be a matter of time before companies fully accept this technology. However, those that embrace eSignatures sooner rather than later will be ahead of the game.
