Electronic contracts and signatures
With more and more aspects of life transferring online, the same has happened with businesses of all types and sizes. Therefore, there emerged a need for electronic contracts and naturally – electronic signatures. The federal legislation signed electronic signatures into the U.S. law relatively recently, and the electronic signatures are nowadays considered equally valid as traditional paper signatures.
Electronic signatures are similarly regulated by law in more than 30 countries, while in others they are still not equally valid as paper signatures and paper contracts.
The most frequent type of electronic contract is a so-called “Click to Agree“contract, which becomes legally binding once you click the “I Agree” button. There are also some other forms of electronic contract, and the electronic signatures that go with them. You can type your full name in the “signature” area, upload a scanned version of pen on paper signature, or use cryptographic “scrambling” technology – which is the most common technique behind the term “electronic signature”.
Since this concept is still relatively new, it is constantly worked on its further progress and improvement. please see here for more information. The most important conditions it needs to fulfill are to be safe for both parties involved in a contract, and to be valid as proscribed by the state and federal law. Some of the greatest advantages of this type of signature are that it makes concluding a contract much faster and easier than before, it is environmental-friendly and most importantly – it is safe and usually equally valid as a traditional signature on a paper contract.
A slight disadvantage lies in the fact that not everyone meets software requirements for concluding and signing an online contract, which is why companies almost always need to offer an opportunity of signing a traditional, paper-based contract to every party they want to do business with.