In today’s society, people do everything electronically, including contracts agreements entered into by freelancers and small companies. Writing by hand, putting pen to paper and scanning or faxing are literally impossible to do, especially if the deadline is near.
The beauty of online contract signing is that the business transaction can be carried out online. Keep on reading to get a guideline on how to execute contracts online without compromising the legal impact(s) of the contracts that you are signing.
Why Signing Contracts Online Is Beneficial
Time and resource constraints are always critical especially for freelancers and small businesses. Signing a contract online offers several key advantages:
a. Efficiency
No more exchanging numerous mails or having to wait for a signed document to be sent. It is easy for many contracts to be signed, and the signed documents can be returned through the internet in a short time.
See also: How to Buy a Genuine Windows 10 Product Key Online
b. Accessibility
Contracts can be opened on any device that is being used, whether it’s a PC, tablet, or phone.
c. Security
Digital signatures are usually collected via some form of encryption and authentication. This means the document cannot be tampered with and is legally binding.
d. Cost-Effective
Signing a contract online has lower costs, as it does not require printing, mailing, and scanning.
Advisable Tips to Follow When Signing Contracts on the Internet
Although contracts can be signed online, it is wise to ensure that the contract you sign has a legal back up. Here are a few things to keep in mind:
a. Ensure the Platform is Compliant
Before you select a certain digital signature platform, check whether it adheres to legal requirements such as the ESIGN Act in the United States or the eIDAS Regulation in the European Union.
b. Verify the Signer’s Identity
Always make a confirmation on the identity of the person who will be signing the contract to avoid conflict. Most of the available platforms have features like email or phone verification that can be used to confirm that the person signing the document is who they claim to be.
c. Audit Trails
Before you sign a contract online, ensure you select a platform that makes it easier to track when and where the contract was signed by both parties. This can be vital especially in case of a disagreement between the employer(s) and employee(s).
Popular Methods for Signing Contracts Online
There are a number of available avenues of instituting a contract online. Let’s look at a few popular methods:
a. Electronic Signatures (E-Signatures)
This is used most often when signing contracts electronically. Services like DocuSign and Adobe Sign enable the user to upload the contract, mark the sign parts, and forward the contract to the counterparty. E-signatures are valid and compliant with the law; it is as accepted in most countries.
b. Clickwrap Agreements
If you have ever accepted a set of conditions such as privacy, terms and conditions, etc., by a single click in a message that ends with “I agree,” then you have had contact with a clickwrap agreement. This method is particularly helpful for the organizations that require terms to be accepted by users without much delay, for instance when using online services.
For more specifics, you can refer to services like Ironclad, that assist with facilitating online agreements.
