|How Your Business Will Benefit from Using Electronic Signatures|
Turnaround times are accelerated with the use of electronic signatures because you don’t keep your customers waiting while you search for contracts or forms. Additionally, adding an electronic signature to a document is just like signing on paper. There is no need to change your customers’ habits and they are assured that even with remote handling, all their documents are secure.
Signatures have been the most accepted means of authentication since ancient times. During the Roman Empire, a combination of seals and signatures were recognized as the primary source for document and legal contract authentication. In the 1830s, electronic communications became legally recognized “electronic signatures” when the telegraph and Morse Code were invented. In 1976, Martin Hellman and Whitfield Diffie introduced public key cryptography, wherein cryptographic keys were first distributed over an unprotected public network. The first electronically signed document was an agreement between two nations – a Joint Communique signed by Ireland and the United States in 1998.
What is an electronic signature or e-signature?
There are different definitions for this term, but for the purpose of US law, the US Code defines it as “an electronic sound, symbol, or process, attached to or logically associated with a contract or other record and executed or adopted by a person with the intent to sign the record.”
Why are businesses using electronic signatures?
E-Signatures and Mobile Devices
Many business owners have come to realize the importance of using e-signatures in business. In fact, some businesses have even adapted this signing process for the smaller screens of mobile devices. If the transaction involves straightforward, simple sales contracts, a mobile e-signature is ideal. The customer sees and agrees to what exactly what is being purchased on the spot, and this allows salespeople to work more efficiently. For lengthy documents however, especially those that have several form fields that require considerable interaction with the client, a PC format is more suitable.
How Legitimate are E-Signatures?
As for the legitimacy of e-signatures, you need not worry. In 1999, the European Union passed the EU Directive for Electronic Signatures, and on the 30th of June, 2000, US President Bill Clinton signed into law the Electronic Signatures in Global and National Commerce Act (ESIGN), which signified that all signed electronic contracts and documents are as legally binding as a paper-based contract.
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