Are Electronic Signatures Legally Binding?

The short answer is yes: electronic signatures are legally binding. One of the benefits to come out of Covid is the Electronic Transactions Act, which permits electronic signatures on contract documents, provided they are placed on the document appropriately and in accordance with the legislation.

As solicitors, we generally use DocuSign to allow clients to sign electronically. There are precautions built into that program: the contract is sent for signing and validated through a code to your mobile phone, and the system records details such as IP addresses, the date the contract was signed, who signed it, and their email address. There is therefore a proper record of who signed and when.

The one point to be cautious about is signing in a more general fashion, for example in programs that do not carry that validation and the certificates that accompany a proper electronic signature. We would not accept documents signed in that way.

We have prepared this article to share general information. For personal advice, book a consultation with our team.