• What are Minimum Legal Requirements of an Electronic Signature?
• Are electronic and digital signatures legally binding?
• Can my business lower costs using an electronic signature management solution?
• How can using electronic signatures improve my workflow?
• What types of organizations use electronic signatures?
• Can an e-signature solution handle last minute revisions?
• Can I sign electronically if I am away from my office and computer?
• Does using e-signatures reduce fraud?
• How do I authenticate signers so that I know the right person is signing?
• What are Minimum Legal Requirements of an Electronic Signature?
• How do I ensure my customers correctly sign documents with complex signature requirements?
• What return on investment can I expect from deploying an e-signature management solution?
• Is e-Signing as simple as it seems to be?
• How are e-signed documents stored?

What is an electronic signature?

An electronic signature is any paperless and legally recognized means of entering into a contract, including electronic symbols, sounds, or processes logically associated with a contract. They can include agreements made by email, facsimile or entering your personal identification number into an ATM.

The legal definition for an "electronic signature" can vary depending on location. For example, the US federal ESIGN Act of 2000 defines an e-signature as "an electronic sound, symbol or process, attached to or logically associated with a contract or other record and executed or adopted by a person with the intent to sign the record. "The European Union's Electronic Signature Directive of 1999 define it as "data in electronic form which are attached to or logically associated with other electronic data and which serve as a method of authentication."

What is a digital signature?

The term "digital signature" has a specific meaning. It consists of applying asymmetric cryptographydefined as an encryption key plus a signing algorithm to the contents of a message. This action creates a "signature" that is affixed to the message. When a document is signed with a digital signature, its authenticity is proven when the public key and signature-verifying algorithm match. No changes can be made to the document after the digital signature is in place, because it invalidates the signature.

What is the difference between electronic and digital signatures?

Simply put, a digital signature is a type of electronic signature. An electronic signature can include an electronic sound, symbol, or process, whereas a digital signature requires an encryption key plus a signing algorithm. Digital signatures offer the most security and integrity of all the different types of electronic signatures because they encrypt data, identify who encrypted it, and require validation whenever any changes have been made.

What are Minimum Legal Requirements of an Electronic Signature?

Simple name stamps, "I agree" boxes, and names typed into a box do not create valid electronic signatures. Instead, to qualify as an electronic signature under these legal frameworks, the e-signature must have the following attributes:

• The e-signature is an electronic symbol, sound or mark unique to a person, which must be ensured and enforced by the signing system.
• The e-signature is logically associated with, or affixed to a record. As a result, the signing system managing must be capable of attaching the signature to the document in a manner that ensures the document remains attached to the e-signature and cannot be modified or removed.
• The e-signature must be attributable to a person. An electronic record or signature is attributable to a person if it was the act of the person. The process of attribution may be shown in any manner, including a showing of the efficacy of a security procedure applied to determine the identity of the person to which the electronic record or signature was attributed.
• The e-signature must clearly show that the person had intent to sign the record. Intent includes the recording of actions taken by signers that demonstrate that they knew and agreed that they were signing, and that they intended to be bound by their e-signature. This can be determined from the context and surrounding circumstances at the time of its creation, execution or adoption, including the party's agreement, if any, and otherwise as provided by law.

Are electronic and digital signatures legally binding?

Electronic and digital signatures are just as binding as traditional pen and ink signatures as long as they are executed through a process that clearly establishes intent to sign and ensures all legal elements of proof. Furthermore, electronic signatures obtained through DocuSign are compliant with the federal Electronic Signatures in Global and National Commerce Act of 2000 (ESIGN) and the Uniform Electronic Transactions Act (UETA) which has been adopted in most states. As a result, they are legally binding and backed by a comprehensive audit trail.

Like their pen and ink counterparts, electronically signed documents can become the subject of a dispute. To prove legality, the signature process must provide enough proof to uphold the transaction. DocuSign offers a complete approach, which includes:

• An audit trail that tracks all signer actions
• Secure encryption so documents can be read and signed only by designated users
• Unique eSignatures created by each user, accessible only to that user, and stored securely online
• Sign Document Blocks so users can 'initial' and 'sign' specific areas of a document
• User Authentication that includes email, access code, and/ or third party ID check
• Time-Stamping of every step in the document process Transaction Summary provides complete document history

Can my business lower costs using an electronic signature management solution?

Both the private and public sector use e-signatures to lower costs. The most common use is to sign legally binding contracts or agreements electronically, thereby lowering the costs associated with records management and mailing. In addition, many organizations are also using e-signatures to speed up transactions and lower the costs for internal processes. For instance, you can use electronic signatures to get sign-offs on internal reviews and approvals particularly valuable for organizations with geographically-dispersed teams.

How can using electronic signatures improve my workflow?

Switching from a paper-based signature model to an electronic one can do many things for your organization, By removing manual processes, you can get signatures faster often in minutes, rather than days. And by integrating electronic signing into your existing processes, you can use the familiar applications you use every day, such as email with the added benefits of transaction tracking and auditing with a secure storage system. As a result, you can speed up your entire workflow and streamline how you conduct business.

As an example, consider sales organizations. Using a paper process, contracts can be sent to the signer and lost. Using an eSign process, however, sales teams get visibility into the process all the way from the lead to the signing process. As a result, they can simultaneously increase close rates and reduce sales cycles.Sales organizations typically find that they can double the time spent selling by reducing the administrative tasks associated with managing paper contacts.

What types of organizations use electronic signatures?

Electronic signatures can benefit any type of organization. Examples of businesses that use external-facing e-signature technology include banks, credit unions, real estate companies, insurance companies, brokerages, auto and home loan firms.

Other companies use electronic signatures internally. For instance, human resource departments and recruiting firms use e-signature technology as the vehicle to secure employment agreements and other confidential employee documents. E-signature technology can also be integrated with customer relationship management and contract management systems.

Can e-signature solutions handle last-minute revisions?

With DocuSign, you can easily handle last-minute revisions. Our collaboration tools help you finalize agreements online, in less time. For instance, you can refine terms and conditions within the documents being circulated, yet retain a full audit trail of proposals and counterproposals within the document to eliminate version control confusion, and to provide vital transaction history.

Can I sign electronically if I am away from my office and computer?

DocuSign supports web-enabled mobile devices, including smart phones, Netbooks, and iPads, so you can complete and sign transactions no matter where you are, or what time it is.

Does using e-signatures reduce fraud?

Interestingly, it has been proven in mock trials that the audit trails associated with electronic signing can be more secure than traditional pen and paper processes because there are more controls over who can sign a document and how that signature is used. As just one example, consider DocuSign PowerForms which combine the key capabilities of PDF forms and our electronic signing and workflow technology. In addition, DocuSign integrates with online commerce processes and applications, which can significantly enhance the security of e-commerce.

How do I authenticate signers so that I know the right person is signing?

DocuSign supports multiple forms of authentication, so that you can choose the right format for each situation and ensure that the correct person is signing the document. For instance, signing can be as simple as a user name and password. Alternatively, you can use multifactor authentication, which can include processes like email authentication, access codes, biometric voice prints, tokens, and even and "ID check", in which signers are asked a series of questions that only he or she would know.

What are Minimum Legal Requirements of an Electronic Signature?

Simple name stamps, "I agree" boxes, and names typed into a box do not create valid electronic signatures. Instead, to qualify as an electronic signature under these legal frameworks, the e-signature must have the following attributes:

• The e-signature is an electronic symbol, sound or mark unique to a person, which must be ensured and enforced by the signing system.
• The e-signature is logically associated with, or affixed to a record. As a result, the signing system managing must be capable of attaching the signature to the document in a manner that ensures the document remains attached to the e-signature and cannot be modified or removed.
• The e-signature must be attributable to a person. An electronic record or signature is attributable to a person if it was the act of the person. The process of attribution may be shown in any manner, including a showing of the efficacy of a security procedure applied to determine the identity of the person to which the electronic record or signature was attributed.
• The e-signature must clearly show that the person had intent to sign the record. Intent includes the recording of actions taken by signers that demonstrate that they knew and agreed that they were signing, and that they intended to be bound by their e-signature. This can be determined from the context and surrounding circumstances at the time of its creation, execution or adoption, including the party's agreement, if any, and otherwise as provided by law.

How do I ensure my customers correctly sign documents with complex signature requirements?

Organizations often need a document that is signed in multiple places or by multiple parties in a specific order. And unfortunately, it can be easy for signers to overlook or incorrectly follow signing instructions. With DocuSign, you can create automated eSign workflows to guide the signer through the document, highlight each point to be completed, and give detailed instructions. By using this process, all fields and signature blocks must be finalized to complete the signature, and as a result, there's a much smaller margin of error than using a pen and ink approach.

What return on investment can I expect from deploying an e-signature management solution?

It might surprise you to realize just how high the cost savings of an electronic signature management system can be and how quickly you can realize your return on investment. According to some published ROI estimates, organizations have saved up to 90 percent of the cost associated with a paper-based system. You'll be able to save on employee time, postage, and overnight courier services. It's a much greener solution as well, which can help you substantially reduce the amount of ink, paper, and copier supplies.

In addition, the turnaround time of electronically transacted contracts is much faster, taking minutes, rather than hours or days to complete. And because you can plan document workflows in advance, you can increase your e-signature ROI.

Is e-Signing as simple as it seems to be?

The short answer is yes, e-Signing is extremely simple. Applying an e-signature legalizes a document if the process is followed correctly. However, you should keep in mind that e-signatures are really about workflow and business process automation. There are many companies that offer e-signing functionality, but if they don't act as a hub that automates and manages document lifecycle processes, their functionality is limited. These processes can include dispatch, routing, navigating signers through the signing process, routing e-signed records to storage and archival systems and providing a valid audit trial to ensure compliance. In addition, added value comes from integration with customer relationship management and content management systems. If you are researching how to implement e-signatures, be sure to take all these factors into consideration.

How are e-signed documents stored?

DocuSign offers a cloud-based hosted service model for archiving records. It helps companies comply with document retention requirements, and increases document security.