Did you know contracts with electronic signatures are valid when they are handled properly?  It has been a tenet of contract law for centuries that a signature on a business contract indicates that the party who signed has entered into the contract and accepts the responsibilities assigned by it, and has the right to expect the benefit of the bargain contained in it.  People who sign contracts are obligated to fulfill those contracts.  But what about signed contracts with no actual signature?  That is the issue raised by the phenomenon of the “electronic signature.”

So what is the situation, legally? Are electronic signatures really valid in contract law?  The answer is yes, they are.  But they need to be used properly in order to ensure that the signature is valid.
The San Diego contract law attorneys at the Watkins Firm point out that Congress passed the Electronic Signatures in Global and National Commerce Act (ESIGN) in 2000.  This recognized that electronic signatures had already become a fact of life in American and international commerce.

There are several ways to “sign” a contract electronically. An electronic document can be initialed or signed in appropriate places via computer. Another way is to click an “I agree” button. This is considered an electronic signature. It is also possible to scan an actual written signature and print an image of the signature in an electronic document.

Some types of contracts are not appropriate for electronic formats. Contracts that must be on paper include foreclosure notifications, termination of utilities, wills, product recalls, termination of insurance benefits and notices from a court of law.

Contracts with electronic signatures are valid when they are handled properly, however, one interesting aspect of the federal law is that businesses must give consumers notification when a paper copy of a contract is available.  If the consumer opts for the paper contract, it must be made available.

When business owners are in doubt about whether an electronic signature would be valid, it is always advisable to seek the counsel of an experienced contract law attorney.

If you would like to learn more about how contracts with electronic signatures are valid we invite you to review the strong recommendations of our former clients and contact the Watkins Firm or call 858-535-1511 today for a free consultation with one of our experienced San Diego business attorneys.