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How the Click-to-Sign eSignature Works

Jul 13, 2017 10:28:00 AM

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You may have questions about the legitimacy of the click-to-sign eSignature, and rightfully so. How can clicking a button be as legally enforceable as signing your name? Doesn’t an electronic signature need to look like an ink signature?   

In the United States, there are a number of laws that make eSignatures legally binding. E-SIGN and UETA were created to make sure that a contract may not be denied legal effect, validity, or enforceability solely because an electronic signature or electronic record was used in its formation. In 2013, a federal court determined that the clickwrap signature meets all of the requirements outlined in E-SIGN to be considered legally enforceable.

If the intent to sign is there, the contract is binding. This is why clickwrap agreements are such a great alternative to ink and paper contracts: they meet the legal requirements outlined in E-SIGN, but are much more efficient than the traditional signature.

Here at PactSafe, we developed a three step process for obtaining binding electronic signatures for any contract:

  1. Prepare and Send
  2. Review and Sign
  3. Record and Analyze

These three steps allow you to quickly sign a contract online, and send it out to others for signature. Our Contract Execution Platform is designed with compliance of laws like E-SIGN in mind, meaning that this three step process ensures that all your digital contracts are legally binding. Here's how:

We make sure signers know they are signing a legal document.

For an electronic signature to be binding, electronic signature law requires that a signer actually intend to sign a contract.  Our electronic signature solution makes sure that contracts are conspicuously presented alongside clear methods to electronically sign the contracts. This leaves no doubt about the signers intent to sign.

We automate the required record keeping process.

As soon as a contract is electronically signed using PactSafe, we create a durable, electronic record of the process by which this electronic signature was created.  That record also includes the contract, proof of any authentication measures, a basic signer digital thumbprint, and a time-stamped audit trail of all activity related to a contract and its signers. 

We give you multiple ways to authenticate signers.

PactSafe gives you multiple signer authentication options so you always know, and can prove, who is signing your contracts.  Signer authentication methods include email, secure links, unique signer codes, and multifactor authentication (e.g. codes sent via SMS).  

We keep your contract records secure, accessible, and tamper proof.

All information transferred to and from PactSafe is 256-bit SSL encrypted, including usernames and passwords. Our electronic signature platform is designed to keep your contracts secure and prevent tampering of your contracts, your electronic signatures, and your electronic records. We create a unique record of every contract before any party electronically signs it, and of each revision. We then create another unique record of the contract and version associated with the electronic signatures. Additionally, we encrypt all of your static files and electronic signature information in Amazon's S3 servers, which are housed in an ISO 27001 certified data center.

If you still have questions about eSignatures or just want to learn more, check out one of our earlier blogposts about click-through agreements

Learn more about how you can reimagine contracts.

 

Caitie Parten

Written by Caitie Parten

PactSafe Marketing Manager