How to prepare for electronic signatures to become a fixture in the new normal
The COVID-19 pandemic and resulting social distancing means that in-person signing of documents is often not possible, and the use of technology plays a crucial role in adapting traditional methods of doing business and facilitating transactions during lockdown, including the increased use of electronic signatures on documents, As usage and familiarity increase, electronic signatures could become the “new normal,” subject to some legal and practical considerations.
In this article, we will learn closely how to prepare for electronic signatures to become a basis in the new normal.
Types of electronic signatures
There are different types of electronic signatures, including:
Writing your name or initials on an electronic document, such as an email or a Word document.
Scan your handwritten signature and merge it into an electronic document.
Use e-signature platforms such as Adobe Sign or DocuSign to create an electronic representation of your handwritten or digital signature.
Legal considerations
Broadly speaking, electronic signatures are generally valid, unless the law or document itself stipulates that a particular type of signature is necessary, for example:
Contracts recorded in writing may be signed with an electronic signature, unless the contract itself stipulates otherwise.
Powers of attorney, which as a rule must be in writing and executed as a deed and therefore require the grantor to sign the instrument in the presence of a witness, can also be signed with an electronic signature, provided that the witness bears witness to the application or electronic signatures.
Assignments of intellectual property must be in writing and signed by the assignor. Again, electronic signatures may be used to properly carry out a task.
Practical considerations
There are some issues to consider:
Companies execute documents through their directors or delegates who can sign using their electronic signature, provided that this is not restricted by the company's constitutional documents.
Foreign transactions may not be subject to the law and, therefore, you should check whether a document executed with electronic signatures will be recognized, in a particular jurisdiction, as legally valid, recordable and enforceable.
If it is necessary to register a document after signing, for example at a national intellectual property office, first check whether the register accepts electronic signatures. Some registers do not, which means that although it is legally valid in England, an electronic signature in Practical practice is not a viable option.
How reliable and secure is the technology used to create the electronic signature?
For example, can a person write another person's name on an electronic document? The more important or valuable the document, the more secure the electronic signature is to provide greater assurance in it. This is particularly important when considering the possibility of the authenticity or integrity of the document being challenged, such as in legal proceedings. The more secure the electronic signature is, the less likely it is to be challenged. If the dispute is successful, also consider establishing procedures to record who signed the document and when.
Ensure that the signatory has the necessary authority and ability to execute the document with an electronic signature.
Country-specific guides are available on e-signature platforms such as DocuSign, but should be used for guidance only. Also note that some countries require you to use a locally approved e-signature provider.
Consider whether you can use digital signatures. This is a more secure type of electronic signature, and its use is mutually recognized.
More and more companies are switching from traditional paper signing methods to safer and more secure ways of signing important documents digitally, including electronic signature solutions.
According to a report by Lunarpen, paperless companies reduce their processing errors by an average of 90%. The entire market is expected to grow to $16.8 billion by 2026 – but there is more to it than just choosing a paperless platform.
Uncertainties can hinder the use of electronic signatures and often limit the confidence of professionals and individuals in their use. Lack of employee training or internal procedures can lead to costly mistakes and negatively impact your customer relationships.
Having inconsistent processes will turn customers away and look for services or products from your competitors. Understanding some electronic signature best practices will ensure you get the right signature every time by building trust and exceeding your customers' expectations.
How does Doc Suite serve you?
Here's how DocuSuite can help you facilitate electronic signatures in organizations:
Signatures are easy
DocuSuite provides an easy-to-use interface that allows users to sign documents with ease.
Signature security
DocuSuite makes it easy to verify the identity of parties involved in signatures to ensure secure processes.
Multilateral signature
DocuSuite allows you to handle documents that require signatures from multiple parties, making it suitable for complex business deals.
Tracking and monitoring
DocuSuite offers tools to accurately track the status of documents and verify their signature.
Legal compliance
DocuSuite adheres to legal standards for electronic signatures, making them legally valid.
Integration with other systems
DocuSuite can integrate with other corporate systems to streamline workflows and improve coordination between departments.
Saving time and effort
DocuSuite helps reduce the need for paper signatures, which speeds up approval processes and improves efficiency.
In this way, DocuSuite can facilitate and improve electronic signature processes within organizations.
Check for compliance certificates
The security of your business is at risk if you use electronic signature software that is not compliant with legislation, and your electronic signature software must clearly demonstrate its compliance with laws and regulations.
Compliance under the Electronic Signatures Act 2000 and other electronic legislation and regulations, such as eIDAS and UETA, requires electronic signatures to meet specific terms and conditions:
Granting consent to conduct business electronically, all signatory parties must agree to sign documents electronically.
Linking the signature to the record. Signatories must place a mark or visual statement on the electronic document, and the signature must be connected to the document being signed.
Intent to Sign Electronic signatures are only valid if the signer intends to sign, and signature requests must be refutable.
Attribution, whether a name or a unique sign, signature should easily make it clear who signed the document.
Establish the rules. The rules establish the legal framework for the provision and effect of electronic signatures
Make sure each digital signature software on your shortlist complies with laws and regulations, and your legal team can help conduct a risk assessment that classifies documents as high, medium, or low risk.
Once you've identified any potential risks, take steps to ensure your documents are legally binding. It's the best way to secure your business from invalid or fraudulent signatures and cybercriminals.
Establish a strong and unified electronic signature policy
Do you have a separate e-signature policy that all team members and clients know and adhere to?
Without a clear policy, there is a risk that the electronic signature processes used may not be compliant, and that electronic records are not supported – or worse, unenforceable.
For example, some legal documents, such as wills, cannot be signed electronically and must be witnessed by an independent third party and cannot be signed with an electronic signature. If these types of documents are signed with an electronic signature, your document may be invalid.
When writing your electronic signatures policy, keep these things in mind:
State its purpose: It is related to regulations and legislation.
Summarizing its content, state the purpose, scope, background and context, such as to whom the policy applies.
Share it formally with all team members and clients: After all, there is no point in having an e-signatures policy, if neither your organization nor your clients are aware of it.
Determine who can sign documents: Your policy should explain their role(s), when documents must be signed, and information about secure storage.
Explain familiar terms and definitions: for example, define the difference between electronic and digital signatures.
Best practices for implementation: You may want to include an opt-out provision. Signatories should be given the opportunity to opt out of signing the agreement electronically. Your policy should explain the procedures to be followed for signers who prefer to sign the agreement manually.
Links to current company policies where relevant, for example, Data Protection and GDPR.
Review and evaluate your policy periodically: Solicit feedback from electronic signature users and customers and update your policy to reflect regulatory changes and improvements.
Once you have developed your electronic signatures policy, share it with your team using your preferred communication platform, for example, Slack or email.
Invite employees for feedback and encourage all users to suggest improvements. Make sure new employees are aware of and read your policy, otherwise you won't have a consistent approach across your organization.
Finally, you will want to know if your policy is effective. You can check this by taking random samples. Periodically, choose a document and review the entire process. Feel confident that your policy is working efficiently as you drive continuous improvement forward.
Doc Suite system and electronic signatures
DocSuite is known as a popular electronic signature system used to facilitate many processes, including electronic signatures. Using DocSuite has a positive impact on providing an effective and secure way to sign electronic documents, while providing features that are compatible with the requirements of laws and regulations for electronic signatures. Our system helps you in :
Electronic consent
It allows contracting parties to agree to conduct business electronically, which is consistent with the requirements of local and international laws.
Link the signature to the record
It allows signers to place a visual mark on an electronic document and links the signature closely to the document.
Intent to sign
It makes it easier for signatories to express their intention to sign, which is consistent with the requirements of the law.
Attribution: Helps effectively clarify who created the electronic signatures on the document.
Evaluation and review
Allows legal teams to evaluate electronic signature programs to ensure their compliance with laws and regulations.
Overall, DocSuite is a great solution for facilitating electronic signatures securely and efficiently, helping achieve legal compliance and secure operations.