Is an Electronic Signature Legally Valid?

 Posted on January 06, 2023 in Business Law

The internet has made doing business online almost second nature over doing it in person. This became even more prevalent during the COVID-19 pandemic, with many businesses providing services virtually. Many companies have extended this prevalence beyond the pandemic and still operate a good bulk of their business online.

This also includes the signing of business contracts. Many of us have received a contract that requires an electronic signature in order to be valid. But some people question whether these types of documents are actually legally valid and if they would hold up in any kind of contract dispute and/or litigation.

What Does the Law Say?

In 1999, the Uniform Electronic Act was adopted by 47 states. Florida passed its own version of the law in 2000 (SB-1334). This law states that electronic signatures can be considered legally binding and holds the same legal obligations and commitments as a signature that is done manually. While the purpose of the law was to stipulate what the requirements were in order for electronic signatures to be legally valid, it failed to provide clear and concise definitions as to which platforms or technologies should be used when providing an electronic signature.

While electronic signatures do provide convenience and speed as a way to endorse agreements to any kind of business contract, there are also some issues a contract with an electronic signature can have. These issues often result in the need to litigate the issue and let the court decide if a digital contract with an electronic signature is valid or not. Just like with any kind of contract dispute, the parties can end up in front of a judge, looking for the court to deem whether or not the contract is legally enforceable.

Some of the factors the courts will consider include:

• Did all parties enter into the contract willfully?

• What method was used to obtain the signature?

• Are all the required legal elements (the offer, the consent, and the acceptance) contained in the contract?

• Are there any other factors that may be relevant to the litigation?

Contact Our Fort Lauderdale, FL Business Lawyers for Assistance

Since there are no universal rules when it comes to electronic signature and digital contracts, there is often a higher risk of ending up in litigation because of disagreements between the parties. This is why it is critical to have the assistance of an Orland Park, FL business attorney from the very beginning of the contract process. Your attorney will ensure that all required legal elements are met in the drafting of the contract, as well as ensure that your best interests are being met.

Whether you are in the process of entering into a contract or you find yourself dealing with a breach of contract or other legal issues, call The Elliot Legal Group, P.A. at 754-332-2101 to schedule a confidential consultation and find out how we can help.

Source:

https://lscu.leagueinfosight.com/compliance-topics/achelectronic-payments/uniform-electronic-transactions-act-alabamafloridageorgia

https://www.uniformlaws.org/committees/community-home?CommunityKey=2c04b76c-2b7d-4399-977e-d5876ba7e034