📖 Definition
Electronic Signature (e-signature): An electronic symbol, sound, or process attached to or associated with a contract or record that is adopted by a person with the intent to sign the document.
In simple terms, an electronic signature is a way to sign documents digitally instead of using pen and paper. It can be as simple as typing your name, drawing your signature with a mouse, or using specialized e-signature software.
How Do Electronic Signatures Work?
Electronic signatures work by capturing your intent to sign a document and creating a record of that intent. Here's the typical process:
- Document Upload: The document is uploaded to an e-signature platform
- Signer Identification: The signer is identified (usually via email)
- Signature Creation: The signer creates their signature (typed, drawn, or uploaded)
- Application: The signature is applied to the document
- Audit Trail: A complete record is created including timestamps, IP addresses, and authentication
Types of Electronic Signatures
1. Simple Electronic Signatures (SES)
The most basic form of e-signature. Includes:
- Typed names
- Scanned signatures
- Checkbox agreements ("I agree")
- Email signatures
2. Advanced Electronic Signatures (AES)
A more secure form that must be:
- Uniquely linked to the signatory
- Capable of identifying the signatory
- Created using data under the signatory's sole control
- Linked to the document in a way that detects changes
3. Qualified Electronic Signatures (QES)
The highest level, requiring:
- A qualified digital certificate
- Created by a qualified signature creation device
- Equivalent to handwritten signatures in the EU
Electronic Signature vs Digital Signature
| Electronic Signature | Digital Signature |
|---|---|
| Broad term for any electronic signing method | Specific technology using encryption |
| Captures intent to sign | Uses PKI (Public Key Infrastructure) |
| Various security levels | High security with certificates |
| Easy to implement | More complex implementation |
Learn more: Electronic vs Digital Signature: What's the Difference?
Are Electronic Signatures Legal?
Yes! Electronic signatures are legally binding in most countries:
- United States: ESIGN Act (2000) and UETA
- European Union: eIDAS Regulation (2014)
- United Kingdom: Electronic Communications Act 2000
- Canada: PIPEDA and provincial laws
- Australia: Electronic Transactions Act 1999
Read our full guide: Are Electronic Signatures Legal?
Benefits of Electronic Signatures
- Speed: Documents can be signed in minutes instead of days
- Cost Savings: Eliminate printing, mailing, and storage costs
- Convenience: Sign from anywhere, on any device
- Security: Audit trails provide better verification than paper
- Environment: Reduce paper usage and carbon footprint
- Organization: Easier to track and manage documents
Common Use Cases
Electronic signatures are used across all industries:
- Business: Contracts, agreements, NDAs, proposals
- Real Estate: Leases, purchase agreements, disclosures
- HR: Offer letters, employment contracts, onboarding
- Healthcare: Patient consent, HIPAA forms, intake documents
- Finance: Loan documents, account openings, compliance forms
- Legal: Retainers, settlements, affidavits
How to Choose an E-Signature Solution
When selecting an e-signature platform, consider:
- Ease of use: How quickly can you and your signers learn it?
- Legal compliance: Does it meet requirements for your industry?
- Security: What encryption and authentication does it offer?
- Features: Templates, team management, integrations
- Pricing: Does it fit your budget and usage needs?
- Support: What help is available when you need it?
💡 Recommendation
For most businesses, Signatly offers the best combination of features, ease of use, and value. It's free to start and includes all essential e-signature features.