Electronic signatures are becoming increasingly common because they’re faster to obtain than handwritten signatures, cheaper because they require less resources and time, and they can be legally binding, just like handwritten signatures. In fact, they can be more secure in some instances because they can be less susceptible to forgery.
In this article, you’ll learn what exactly electronic signatures are, what requirements they need to meet in order to be legally binding, how Mailsuite’s electronic signatures work, and what types of documents can and cannot use electronic signatures.
What are electronic signatures?
According to the United States Electronic Signatures in Global and National Commerce (ESIGN) Act and the Uniform Electronic Transactions Act (UETA), electronic signatures are “any electronic sound, symbol, or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.”
In other words, electronic signatures are available in many different forms, from checking an “I agree” box on a website or signing with your finger on a mobile device to typing in a PIN number or using a more robust esignature solution like Mailsuite.
Requirements for electronic signatures to be legally binding
Requirements for legal electronic signatures vary based on the jurisdiction and sometimes the industry. In this article, we’ll focus on the United States, where there are four major requirements electronic signatures must meet in order to be recognized as valid:
- Demonstrates intent: Electronic signatures are only valid if each party intended to sign the relevant document.
- Shows consent to conduct business electronically: Each party must agree to sign electronically. For business to business interactions, there are a variety of ways to get consent, but in writing is always the safest method. There are stricter requirements to get consent from individual consumers, so be sure to check your local regulations in order to do so properly.
- Associates the signature with a document: The software or tool that parties use to sign a document electronically must create a record that shows how the signature was created. This can be a text or image that is added to the document that proves it was signed electronically.
- Allows for record retention: All parties must be able to retain and accurately reproduce a copy of the signed record.
Mailsuite’s esignature feature meets these requirements, as you’ll see in the next section.
How Mailsuite’s electronic signatures work
Mailsuite makes sending documents for signature and signing documents a simple process. In a nutshell, the sender attaches a document for signature to their email via Mailsuite, then sends the email how they normally would. Then the recipient consents to sign electronically by clicking a button in the email they receive and follows the prompts to sign the document.
Once the recipient confirms their signature, a copy of the signed document is emailed to both the sender and receiver, and a full audit trail is available. You can see the full process for sending documents for signature in this walkthrough.
You can use Mailsuite’s signature audit trail data to verify the signature on your document. The audit trail includes:
- The sender and recipient names and email addresses
- A private document ID and secure validation code
- Signature status (the document name, who signed it, and when)
- Evidence history (IP addresses, date of access, device used, and action taken)
With Mailsuite, the process of sending a document for signature and signing a document is simple and takes seconds. It also meets all of the requirements listed in the previous section.
What types of documents can be signed electronically?
Electronic signatures can be used legally on a wide variety of business documents throughout the world. However, it’s always important that you make sure electronic signatures are legal in your specific circumstances, especially in your country of business and in your industry. Here are some examples of documents where electronic signatures are generally acceptable:
- Employment: Job offer letters, work contracts, employee policy updates
- Non-disclosure agreements (NDAs)
- B2B: Requests for proposals or quotes, sales contracts, master service agreements (MSAs), purchase orders, and statements of work
- Real estate and other property: Property ownership transfers, leases, and mortgage documents
- Banking and finance: Bank account documents, loan agreements, insurance policy applications, and insurance claims
What types of documents can NOT be signed electronically?
While a lot of day-to-day business documents are eligible for electronic signatures, there are always exceptions. Again, be sure to check which document types can be legally signed electronically in your specific circumstances. Here are some examples of documents that cannot be signed electronically in the United States:
- Court documents: Divorce statutes and family law documents, wills and trusts, court orders and other official court documents
- Cancellation and default notices: Cancellation of utility services, notices of default, foreclosure, or eviction from a primary residence, termination of health or life insurance policies
- Health and safety: Product recall notices, licenses and other documents required to transport hazardous materials
Learn more about document tracking and signing with Mailsuite:
- How to sign a document sent with Mailsuite
- Mailsuite’s eSignature Audit Trail
- Document analytics in Mailsuite
- Mailsuite’s secure PDF sharing features
DISCLAIMER: The content provided on this site is for general informational purposes only. It is not intended to be legal advice and should not be considered legal advice. Laws related to the topics discussed may change rapidly and Mailsuite cannot ensure that the information presented is accurate or up-to-date. If you have specific legal questions regarding any of the information found here, it is recommended that you seek guidance from a licensed attorney in your jurisdiction.
Last updated: January 14, 2025