Are electronic signatures binding?

by ‎12-16-2010 11:02 AM - edited ‎12-16-2010 11:06 AM (2,149 Views)

Question


I have never used an electronic signature program before-are they binding? How does the company that sent it to me know that it's me?

Answer

 

 


DocuSign enables valid and enforceable electronic signatures, compliant with ESIGN and state electronic signature laws. In cases where a signer tries to repudiate a contract based on a claim that his signature was forged, it becomes a matter of proof, just as it would in the case of a wet signature on a paper document.

Proof of identity is accomplished at various levels in either world. In the case of a live signing, it can range from merely trusting the signer by taking his word, to requiring 2 pieces of photo ID, to requiring a notary public to witness the signature. It all depends on the risk threshold of the one relying on the signature. In the electronic world, various authentication measures are available. DocuSign offers several, including email address confirmation, IP Address ID, “shared secret” (DocuSign’s Access Code) and knowledge-based authentication (DocuSign’s ID Check). Electronic authentication measures are a matter of preference, as they are for paper-based transactions.

Remember, a certain percentage of contracts are going to be repudiated, whether they are on paper or signed electronically. The risks associated with such repudiation (frequency, amount at stake, etc. based on your industry experience) will ultimately determine the level of authentication you deem appropriate for the transaction. As a DocuSign customer you have the ability to apply different authentication measures on a transaction-by-transaction basis.