On (e-)signatures

Yes, there are jurisdiction-specific exceptions, and yes, it is more complicated and there are nuances… but, generally speaking, and subject to the same exceptions and nuances, this is how signatures work legally.

The point of a signature is to prove a person’s entry into a contract. Most types of contracts have no prescribed form, with no requirement to be in writing and no requirement to have a signature affixed. Buying groceries in a shop happens through the grocery shop offering up the groceries – they are put on shelves with price tags under them – and the shopper accepting the offer by handing over cash to the cashier. There are many more examples from law school but the key point is that contracts can be created in different ways. If two parties have promised each other to do, or exchange, one thing for another, this will typically be legally enforceable and hence a contract has been created.

The problem that arises is how do you prove what was agreed. This is in particular difficult and important where the exchange is not simultaneous (I give you this now and you will give me that later). Writing down the terms of the contract makes it easier to prove what was agreed and including date, time and each person’s signature increase the value of the written contract as evidence further. But that is still all it is, a form of evidence of the contract actually entered into. Other than as a form of evidence of agreement, the signature carries no magic power.

There are exceptions to this rule of course. For some types of contracts law makers have decided that it is not satisfactory to allow any type of evidence. Instead, they have imposed a requirement for a certain form, generally a signed written contract.

So, in the world of digital signatures this means that for contracts of the first category, i.e. the signature is just evidence, any digital signature is valid, but some are better forms of evidence than others. Including times stamps, linking it to an email and tracking IP numbers are all helpful in that respect.

For the second type, i.e. a signature is a formal requirement for an enforceable contract to be created, the digital signature solutions needs to be approved by the law makers. The EU have created their specifications but most popular digital signature solutions do not meet the requirements as the identification process slows down use and adoption.

Luckily, most contracts are in the first category allowing us all to benefit from the simple digital signing solutions that are easily available. At DealStack we make full use of digital signatures to ensure a great customer experience throughout our products. While not 100% possible yet, we look forward to binning all our scanners very soon!

At DealStack we make full use of digital signatures to ensure a great customer experience throughout our products.