One of the most important questions of e-signature validity and enforceability is how to be sure of the e-signer’s true identity.
Email Authentication Meets the Legal Standard and Is Enforceable
When you send a document to someone for e-signature, any legally valid software would require them to authenticate their identity, usually via email, before being able to e-sign. This happens either by (1) the recipient logging into the software with the email address specified by the sender, or (2) clicking a signing link in an email sent to the verified email address. In both cases, the recipient’s email address is a unique identifier that meets the legal requirement of verifying the signer’s (recipient’s) identity before allowing them to e-sign.
Two Ways to Authenticate Signers’ Identity
When you send a document for e-signature, the signer usually has to prove who they are through their email. This can happen in two ways:
- They log in to the e-signature software with their email address.
- They click a special link sent to their email.
The most secure practice is to do a combination of steps (1) and (2).
What if the verified email address is a shared inbox?
As long as the email address that the sender specifies is verifiable as the correct email address for the person who should be signing, that’s all that is relevant to an e-signature being binding and enforceable.
For example, if someone receives an e-signature request in their email inbox and asks their assistant — who has access to this inbox — to e-sign the document on their behalf via their email, the e-signature is enforceable. This is because accessing the email address inbox with the correct login credentials, following the signing link, and completing the e-signature request constitute a high enough level of authentication of the signer’s identity.
Additionally, e-signatures on reliable software providers are tracked through an audit trail, which indicates the event types, IP addresses, and timestamps of key events in the e-signing process. This gives you extra security and assurance of the e-signature’s authenticity, and you can be confident that it would hold up in court.
Getting Big Features Without a Big Price
Some e-signature services offer top-notch features without charging a fortune. This is great for growing businesses that need powerful tools but can’t spend too much.
Things to Look For
Following the Rules
Different industries have different rules about signatures. Make sure your e-signature service follows all the right laws and regulations.
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