You’ve landed a new freelance job, congrats!
As a remote worker, your contract is sent to your Inbox with your contract. You notice a space at the bottom where you’re asked to sign.
Wait, I hear you “is a computer signature legally binding?”
Don’t worry, we’ve got the most popular FAQs so you’ll learn everything about this new form of signatures. Read on to find out more.
1. What Is an Electronic Signature?
First, let’s tackle “what is an electronic signature?”
Otherwise called an ‘eSignature’, it’s an electronic indication of intent to agree with the document’s contents.
Stumped on how to make an electronic signature? Know that it’s not only scribbling a signature on your tablet, eSignatures include those that are:
- Typed
- Scanned
- An electronic representation of a handwritten signature
- A fingerprint or retina
- A unique representation of characters
2. What Are Electronic Signatures Used For?
Other then your contract, electronic signatures are necessary for a variety of documents and transactions, often for personal use. For example, contracts and agreements, loans, leases, and order forms.
3. Are Electronic Signatures Legal?
“Are electronic signatures legally binding?” you ask.
Yes, they are. Almost every country has adopted an electronic signature law. If you’re wary, check the electronic signature software to see their comprehensive guide to the legality and where your country stands.
4. Are Electronic Signatures Trustworthy?
Electronic signatures are also secure. As these documents contain sensitive information, you can’t afford to take risks so rest-assured they are unique, encrypted, and tamper-evident.
There is a multi-faceted verification of signing events so your data is secure.
Also, many electronic software companies have an extensive audit trail that serves as a third-party validation of transaction completion. This includes the signer’s email address, name, authentication, and IP address with a time-stamp.
5. What Happens If My Electronic Signature is Not Identical to My Handwritten Signature?
Nothing.
The electronic software company will capture biometric data on your handwriting during the signature process (e.g. speed) and use this to metric to identify you.
6. Why Should I Use Electronic Signatures Instead of Checking a Box For Giving My Consent to a Document?
A legal electronic signature is not compulsory, but it depends on the security you want to provide to the transaction.
Electronic signatures let you identify as the signer which is important in a court trial as you can prove there was a bidding contract.
7. What is the Difference Between a Digital Signature And an Electronic Signature?
Even though people throw around “digital signature” and “electronic signature” interchangeably, there is a difference.
We’ve covered what an eSignature is but a “digital signature” is a set of algorithms and encryptions that create a “hash” (a digital fingerprint) for each person involved in the signing process.
Digital signatures are mainly used in government agencies (e.g. ministries) and regulated industries. Also, pharmaceutical companies use certified signatures to meet their industry standards.
8. What Are the Benefits of Electronic Signatures?
There are many advantages of electronic signatures such as:
Cost-Effective
When you’re signing a contract “the old-fashioned way”, prices add up. Think about the cost of paper, printing, signing, scanning, storing, and replacing lost documents that can occur.
An electronic signature streamlines the process and is far cheaper.
Saves Time
Waiting for a potential employee or client to send over a handwritten signature can take time. But when it’s electronic, you’ll receive the signed contract in minutes.
Better Control
Electronic signature software has a control panel where you can view and control the entire signing process.
The control panel reveals the current state of the document (e.g. sent or pending signature) including the document signatures history, a documented track record, and supporting documents for each operation.
Better Service and Happier Customers
As you don’t need to install any extra software of apps, both parties can enjoy its quick service.
Eco-Friendly
A person in the U.S. goes through 700 pounds of paper products a year.
When you’re switching to electronic signatures, it’ll cut back on the amount of paper used. Also, your desk will be less cluttered when you use an electronic signature software.
9. How Do You Know the Right Person Has Signed the Document?
It’s important to use a solution that uses additional verification and validation of users. It can be done by creating an account and verifying that account before signing the document.
But don’t use solutions where you sign within the email you received or sign without creating an account as it’s impossible to validate the signee.
10. What if Someone Claims They Didn’t Sign the Document?
In a nightmare scenario, this issue may arise so it’s essential you use a solution that uses blockchain.
This is because blockchain will contain the evidence and truth of the transaction and document. If you’ve chosen a less secure solution, you’ll have to do an extensive audit trail to unearth the proof.
So before investing in an electronic signature software, ensure they have the protection you need.
And That’s Everything to Know About Your Computer Signature!
A computer signature is beginning to overtake handwritten signatures. Their ability to streamline the transaction process, save time, and money make them useful for businesses.
If you are a business owner, hoping to introduce electronic signatures to your paperwork, make sure the provider has the right protection to prove the signee added their name in case a legal issue arises in court. Good luck!
Interested in an electronic signature software? We’d love to hear from you. Check us out for more details.
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