Have you heard of the idea of a digital signature? Wondering what they are all about? Wondering whether they are legally enforceable? Well, we are going to answer all of the questions that you may have about digital signatures on this page.

What is a Digital Signature?

A digital signature is pretty much what it says on the tin. It is a digital copy of your signature. Legally, it doesn't even need to be an actual copy of your signature. It could be an audio agreement. As long as it conforms to the law related to contracts, then it works.

The age of digital signatures has allowed people to start signing legally enforceable contracts from their computer. Depending on how the system works, a digital signature will either involve you typing in your own name, or actually attaching a real copy of your signature to the contract. No matter which route you go down, the end result is the same. This means that you will have signed a contract without needing to physically handle a piece of paper.

Most of these documents are signed and delivered via email. However, they can be distributed in a multitude of different ways. Companies that have started to switch over to the idea of digital signatures have managed to find that conducting business is a lot more efficient than it used to be for them.

The Benefits of Using Digital Signatures

For starters, when you use digital signatures, you do not have to worry about printing out forms to sign. This is a huge issue nowadays when more companies than ever are looking to 'go green'. 

As a business, it is also costly to send out letters to people for them to sign back to you. If you have some sort of digital signature system in place, then you can save a lot of cash.

The major benefit of digital signatures, however, is the fact that they are fast. With the right set-up, important documents can be signed and returned in a matter of minutes. There is no quicker system. This is great for continuing to keep business flowing in, whether you are the one signing the contract or somebody else is.

The Legal Side of Digital Signatures

So, a lot of people wonder if electronic signatures ar e legally binding or not. The truth? They are. They have been since 2000. This is in the United States. Digital signatures seem to be legal in most countries.

Since digital signatures are regarded as the same as pretty much any signature, you will have to ensure that you conform to the laws surrounding the normal signing of contracts i.e. there is consent, the person that is signing the document is legally allowed to sign the document, etc.

Because digital signatures are seen as the same as any other contract signature in the eyes of the law, if you have to head to court due to a breach in the contract, then you have a legal standing. All you need to do is prove that the signature was obtained legally. Chances are that if you are running a business and kept a paper trail, then this shouldn't be too difficult to prove!

Conclusion

Digital signatures are becoming increasingly common for businesses, particularly in this pandemic-striken world. They are a great way to ensure that contracts are signed quickly, great for cutting down paper waste, and with the right system you can save a lot of time. If your business doesn't yet use digital signatures, we seriously suggest that you start look into it soon. They carry a wealth of benefits.