Electronic Signing of Agreements: The Future of Contract Execution
Gone are the days of traditional paper-based contracts and lengthy processes of obtaining signatures. With the advent of electronic signatures, signing agreements has become much easier and faster. Electronic signing of agreements has become increasingly popular, not only for its convenience but also for its security and legality.
What is Electronic Signing?
Electronic signing is a means of signing documents digitally, where a person`s signature is authenticated and encrypted electronically. Instead of printing out a document, signing it, and scanning it back to send it to the concerned party, electronic signatures allow a person to sign a document with just a few clicks.
Types of Electronic Signatures
There are usually three types of electronic signatures:
1. Basic Electronic Signatures: This is the simplest form of electronic signatures, where a person types their name into a document.
2. Advanced Electronic Signatures: This type of signature employs a more secure authentication methodology, like a personal identification number (PIN), secure biometric authentication, or a digital certificate.
3. Qualified Electronic Signatures: These are the most secure and legally binding electronic signatures, confirmed by a certified authority, and can only be created by a qualified electronic signature creator.
Benefits of Electronic Signing
1. Saves Time and Effort: Electronic signing eliminates the need for printing, signing, and scanning documents, reducing the time and effort required to sign agreements.
2. Improved Efficiency: Electronic signing helps organizations expedite business processes and reduce turnaround times, leading to improved efficiency.
3. Enhanced Security: Electronic signing is highly secure, with documents encrypted during transmission and stored in secure locations.
4. Cost-Effective: Electronic signing eliminates the need for printing, postage, and storage, reducing costs associated with traditional methods of signing documents.
5. Environmentally Friendly: With no paper being used, electronic signing helps in reducing environmental waste.
Are Electronic Signatures Legally Binding?
Yes, electronic signatures are legally binding in most countries. They are recognized and accepted by law, provided they meet certain criteria, like being identifiable, verifiable, and having the intent to sign. Also, organizations should be compliant with relevant laws and regulations when using electronic signatures.
Conclusion
With the world becoming increasingly digital, electronic signing of agreements is becoming the norm. It has numerous benefits, including time-saving, improved efficiency, enhanced security, cost-effectiveness, and eco-friendliness. Electronic signatures are legally binding, provided they meet certain criteria. Organizations that embrace electronic signatures can streamline business processes, reduce costs, and improve overall efficiency.