What Is An Electronic Signature?

According to a recent US law, an electronic signature is “an 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”. This definition comes directly from the Uniform Electronic Transactions Act (UETA). Over 90% of US states have enacted UETA. However, as far as the legality of electronic signatures goes, the court is not completely new to the issue. In fact, common laws reference to telegraph and faxes signatures.

Courts have stated that an enforceable electronic signature can include documents sent via email, signed using a digital pen pad device at a store, acceptance of the End-User License Agreement, or by signing electronic documents online.

Many experts agree that an electronic signature should not be confused with a digital signature. These experts state a digital signature is one that uses cryptographic techniques. However, many researchers use the terms “electronic signature” and “digital signature” interchangeably. In truth, many times an electronic signature has very different security properties and cryptographic signature techniques than a digital signature. Most experts would agree it is proper to call a digital signature a subset of the electronic signature.

Today many businesses rely on the idea of the electronic signature. Online contracts are utilized at higher rates than in the past, making way for a new push in the traditional electronic signature option. Mortgage companies, legal offices, and medical facilities are examining the benefits of using the electronic signature method. Many businesses realize the on-demand services they can conduct, reducing time for all parties involved, when they utilize an electronic signature method.

SignatureLink - an electronic signature solution.