Recently I’ve spoken to a lot of people about RelaNet Sign, RelaNet’s e-signature solution. Usually the tax pros I talk to really like the idea of having a way to get signatures from clients without requiring an in-person meeting, but they often have concerns about the legality of e-signatures. As a result, I was researching that topic, and I came across an article that I wanted to share.
The article is titled Frequently Asked Questions (FAQ) for Using Electronic Signatures, and it was published by Burr & Forman, a large law firm with offices all across the Southeast. I like this article because it lays out very clearly and in plain language what makes an e-signature legal.
Legality of e-signatures
Here’s a summary of a few parts that I found particularly relevant:
Are electronic signatures legal? “Yes. Electronic signatures (‘e-signatures’) have been legal for over 20 years where the parties agree to conduct business by electronic means.” The two primary laws that establish the legality of e-signatures in the United States are the ESIGN Act and the Uniform Electronic Transactions Act (or “UETA”).
How do I demonstrate later in court that the other party to a contract was in fact the party that actually e-signed the contract? “An e-signature is attributable to a person if it was the act of the person (such as clicking ‘Yes, I Agree’ on a screen, or using a stylus or finger to ‘write’ their name on a screen, each of which is an act). The act of the person may be demonstrated in any manner, including a showing of a security procedure applied to identify the person to which the e-signature was attributable.”
In other words, there are lots of ways a person can electronically sign a document. All they have to do is take an action to agree to it. The trick is proving that the person who signed the document is actually the person they claim they are. And that’s where solutions like RelaNet Sign come into play. By requiring a person to log in with a password, keeping an audit log that tracks actions taken on a document, and using tools like knowledge-based authentication, we can establish that the signer is who they say they are.
If you would like to read the entire article for yourself, you can view it using this link: Frequently Asked Questions (FAQ) for using Electronic Signatures
Learn more about RelaNet Sign
If you have any questions about electronic signatures or how RelaNet Sign can help you more easily get the signatures you need without requiring an in-office visit, please get in touch. I would be happy to talk to you about how we can help.