Electronic signature

What does Electronic signature mean?

An electronic signature is any electronic sound, symbol or process that a person attaches to a record with the intent to sign it. That definition, taken almost word for word from US law, is deliberately broad: a typed name, a drawn squiggle on a touchscreen, a click on an "I agree" button or an e-signature (sometimes written esignature) applied through an online platform can all qualify.

What turns a mark into a signature is not its appearance but the surrounding facts. Courts and regulators generally ask whether the person intended to sign, whether they consented to doing business electronically, whether the signature can be attributed to them, and whether the signed record was kept in a form that can be reproduced accurately later. Good e-signature tools exist mainly to capture evidence for those questions.

In practice, a typical flow looks like this. A freelance designer uploads a project agreement as a PDF, places a signature field for the client, and sends it. The client opens a link from their email, reviews the document, types or draws a signature and clicks to finish. The platform records each step with timestamps and produces a finished copy that both sides can download and keep.

A common misconception is that an electronic signature must be encrypted or certificate-based to be legal. That describes a digital signature, which is one specific cryptographic technique. In the United States, the ESIGN Act and UETA give electronic signatures the same legal effect as handwritten ones for most transactions, without prescribing any technology. A few document types, such as wills and certain court or family-law papers, are commonly carved out, so it is worth checking the rules that apply to your situation.

Another myth is that a signature image alone proves anything. On its own, a pasted image of someone's handwriting is weak evidence. What makes an electronic signature defensible is the record around it: the audit trail showing who received the document, when they opened it and from which device, plus a way to show the file has not changed since.

eSignSimple handles electronic signatures the straightforward way. You upload a PDF or Word document (Word files are converted to PDF), set a signing order if needed, and signers complete it without creating an account. Every completed document gets an audit trail with timestamps, IP address and device details, a certificate of completion, and a SHA-256 hash of the final file that anyone can check on our public /verify page. These are simple electronic signatures, not qualified or advanced ones.

Our take: for the everyday agreements most small businesses sign, from NDAs to leases to offer letters, a well-documented electronic signature is all you need. Spend your energy on clear documents and good records rather than chasing heavier signature types the law does not require of you.

What is an example of electronic signature?

A freelance copywriter agrees a retainer with a new client over a video call. She uploads the contract to eSignSimple, drags a signature and date field onto the last page for the client, and sends it. The client opens the email link on his phone, types his name as a signature and finishes in two minutes; both sides get the signed PDF with an audit trail and certificate of completion attached.

What has to be true for an electronic signature to hold up?

When an electronic signature is challenged, the argument rarely turns on the signature itself. It turns on four questions, and it helps to know in advance which piece of evidence answers each one. Intent: did the person mean to sign, rather than just open or scroll? A deliberate action such as adopting a signature and pressing a finish button, recorded with a timestamp, answers that. Consent: did they agree to deal electronically? A consent statement the signer accepts before signing, and the fact that they chose to sign through an emailed link, answer that. Attribution: was it really them? The email address the link went to, the IP address and the device used are the usual answers. Integrity: is this the same document they signed? A fingerprint of the final file answers that.

If you can point to a specific record for each of the four, you are in a strong position for the kinds of documents most small businesses sign. If one is missing, for example the contract was signed from a shared inbox that five people can read, that is the weak spot a challenger will aim at, and it is worth fixing before you send rather than after.

Which documents should you not sign electronically?

Most commercial paperwork can be signed electronically, but a short list of documents usually cannot, or needs extra formality. Wills and codicils are the classic example almost everywhere. Many family-law documents, some court filings, documents that must be notarized or witnessed in a particular way, and in some countries property transfers and certain employment terminations also need paper, a wet signature, a notary or a higher signature level. The exact list differs by country and, in the US, by state.

A practical rule we use: if a document is normally signed in front of an official, filed with a land registry or court, or witnessed by a named person, check the local rules before switching it to e-signature. If it is an agreement between two businesses, or between a business and a customer about services, goods, employment terms or confidentiality, an electronic signature is almost always fine. Our guide on whether electronic signatures are legally binding goes through the common exceptions in more detail.

Scanned, typed, drawn or digital: which kind do you actually need?

People often mix up four different things. A scanned signature is a picture of your handwriting pasted into a file; it is an electronic signature in the legal sense but carries almost no evidence on its own, because anyone with the image can paste it. A typed or drawn signature applied through a signing platform is the same legal category, but now it comes with a record of who received the link, when they acted and from which device. A digital signature is a cryptographic technique that binds the file to a certificate. A qualified signature is a specific EU legal level built on that technique.

For an NDA, a freelance contract, an offer letter or a lease, a typed or drawn signature through a platform is the sensible choice: it is quick for the signer and leaves good evidence. Reach for certificate-based signatures when a law, a regulator or the other side explicitly asks for them. The comparison in digital vs electronic signature lays out the trade-offs side by side.

What should you keep after an electronic signature is complete?

Keep the final signed PDF exactly as you downloaded it, not a re-saved or printed copy, because any re-save changes the file and breaks the match with its recorded fingerprint. Keep the certificate of completion with it; with eSignSimple that is the last page of the same file, so this happens automatically. Keep the email that delivered the completed document, which shows when you received it. And note where the file lives, so someone else in your business can find it if you are away.

How long to keep it depends on the document. A reasonable baseline is the life of the contract plus the period in which someone could sue over it, which is several years in most places. For employment and tax records, local rules often set specific minimums, so check those rather than guessing.

Which terms are related?

• Digital signature: A digital signature is a cryptographic mechanism that uses public key infrastructure to prove who signed a document and that it has not changed.
• ESIGN Act: The ESIGN Act is a 2000 US federal law giving electronic signatures and records the same legal validity as paper and ink in interstate commerce.
• UETA: UETA, the Uniform Electronic Transactions Act, is a US model law adopted by 49 states that validates electronic records and signatures.
• eIDAS: eIDAS is the EU regulation (No 910/2014) on electronic identification and trust services, including electronic signatures.
• Simple electronic signature (SES): A simple electronic signature is the basic eIDAS level: data in electronic form used by a signer to sign, such as a typed or drawn signature.