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Electronic signature
An electronic signature is any electronic way for a person to show that they agree with what is in a document. It includes a typed name, a signature drawn, a click-to-sign button or a cryptographically verified certificate attached to a person’s identity. In most jurisdictions, if the right conditions are met, it has the same legal effect as a handwritten signature.
How It Works
A signer reviews a document and completes an electronic action that signals consent. Depending on the platform and the legal requirements of the transaction, that process may include identity verification, timestamps and an audit log of the signing event. Once executed, the document is stored electronically and shared with all parties.
The range of what qualifies is wider than most assume. A typed name at the bottom of an email can count. So can a scanned signature image or a biometrically verified certificate. What matters legally is intent, not the method.
Electronic signatures are used for vendor agreements, employment documents, sales contracts, NDAs and most standard business transactions. For higher-risk documents, platforms support stronger verification to meet elevated legal standards.
Why Legal & CLM Teams Should Care
Here's where legal teams often run into trouble. Signatures get collected through whatever tool is convenient, with no consistent process and no audit trail. That works fine until something is disputed.
If a contract is challenged and the only record of agreement is an email reply that says "sounds good", enforceability becomes a real question. A proper electronic signature platform creates a timestamped audit trail, captures the signer's identity and IP address and locks the document against post-signature changes. That record is what makes the signature defensible.
For teams running high volumes of contracts, the operational side matters just as much. Signature collection that once took days closes in hours. That speed compounds across hundreds of agreements a year.
Example Use Case
A procurement team finalizes a vendor agreement and sends it through an electronic signature platform. The vendor receives a secure link, reviews the contract and signs it the same afternoon. Both parties get a copy automatically. The executed agreement is logged, timestamped and stored, with a full audit trail attached.
Three months later, a question comes up about what was agreed. The legal team pulls the signed document in seconds, audit log included.
How It Relates to Adjacent Concepts
Electronic signatures are often confused with digital signatures. The distinction matters. A digital signature uses cryptographic technology to verify identity and detect post-signature tampering. All digital signatures are electronic signatures, but the reverse isn't true.
Legal recognition varies by jurisdiction. In the US, the ESIGN Act and UETA establish enforceability. In the EU, the eIDAS Regulation defines three tiers of electronic signatures with different authentication requirements depending on the risk level of the transaction. Some documents, including certain real estate filings and court submissions, still require wet signatures depending on local law.
FAQs
Are electronic signatures legally valid?
Yes, in most countries and for most document types. Enforceability depends on the jurisdiction and whether the process demonstrates clear signer intent.
What's the difference between an electronic and a digital signature?
Electronic signature is the broader term. A digital signature is a specific type that uses encryption and certificates to verify authenticity and detect tampering.
What happens if someone disputes an electronically signed contract?
A strong audit trail, including timestamps, IP capture and document hash verification, makes a challenge difficult to sustain.
Related Terms
Looking to simplify contract execution? Explore SpotDraft Contract Management or request a demo to see how teams manage agreements from drafting to signature in one place.