As most businesses have transitioned to working from home, signatures on documents must be executed outside of the office. There are a few ways to get signatures on documents when you’re not in the office, such as sending the documents in the mail or faxing them back and forth. However, electronic signatures are typically the easiest for all parties involved.
There are some cases where business disputes arise over an electronic signature and whether or not it is valid.
In 2000, the federal government enacted the United States Electronic Signatures in Global and National Commerce (ESIGN) Act to address any issues that may arise from electronic signatures. The Act has four major requirements for an electronic signature to be validated.
Any electronically-signed document must follow the following requirements to be valid:
Intent to Sign
Similar to a handwritten signature, both parties must show clear intent to sign documents electronically. An example of showing intent would be using a computer mouse to draw a signature or typing your name out and choosing to “accept” the signature. In both cases, the individual has taken an action to intentionally sign the document.
Consent to Do Business Electronically
Parties will be asked to show consent to do business electronically. In most cases, signers are asked to accept a consent clause stating that they agree to use electronic signatures. The signer is notified in the clause that the agreement within the contract will be treated as though it was signed by hand.
Signed Copies
When a document is signed, whether electronically or by hand, there must be proof of when the signature was executed, and all signers must receive a copy of the agreement. Most electronic signature solutions will automatically provide copies.
Record Retention
All parties or persons involved must have access to a reproduction of the documents for reference. As long as the document accurately reflects the agreement, it will stand as a valid agreement between the parties.
Electronic signatures will have the same legal effect that handwritten signatures have in court as long as they are executed following the four ESIGN Act requirements.
If you are considering raising a contract dispute over an agreement that was electronically signed and you have followed the ESIGN Act requirements, you might have grounds for a case.
Contact our firm today for a consultation.
Gaslowitz Frankel LLC is Georgia’s premier fiduciary litigation law firm. The firm has earned a reputation for excellence across Georgia and the Southeast in providing representation to individuals, executors, trustees, investors, shareholders, and financial institutions in complex fiduciary disputes involving wills, estates, trusts, guardianships, conservatorships, businesses, and securities.
