It may surprise you that electronic signatures (e-signatures) have the same legal effect as traditional ink signatures. This means that documents and contracts signed electronically are enforceable. Creating an e-signature on documents may help your business if you plan to conduct business online.
Making transactions speedy with an e-signature
In the world of online businesses, speed can give you an advantage over your competitors. Making it easy for customers to buy and transact with you saves a lot of time. Plus, the convenience may encourage repeat business. As a business owner, you may use e-signatures in a variety of contexts, such as:
- Sales contracts
- Employment contracts
- Financing agreements
- Noncompete agreements
To ensure that your e-signatures are legally valid, it’s crucial to adhere to the rules specified by the Uniform Electronic Transactions Act (UETA) and the Electronic Signatures in Global and National Commerce Act (ESIGN). These rules outline the legal use of electronic signatures and records in business transactions.
Risks to signing documents electronically
Despite its efficiency, there are some risks involved in using e-signatures. Conducting business online means you may come across certain threats to your online security, such as:
- Fraud through forgery of your signature
- Identity theft
- Phishing scams
- Legal compliance risks
There are risks to using your sensitive information freely. Fortunately, there are specific things you can use to set up safety measures and limited access. Doing so helps ensure the security of your transactions and minimize the risk of others falsifying documents on your behalf.