Many small businesses think that e-Signatures are better than physical signatures. And we totally agree! Here’s what you should know.
The ESIGN Act (the Electronic Signatures in Global and National Commerce Act) was enacted in 2000 and most states have adopted some from of the UETA (the Uniform Electronic Transactions Act) (a different, but similar law).
Generally speaking, these laws say:
This only applies if:
As a result, the vast majority of e-signed contracts are enforceable. However, there are some exceptions. For example, if a separate statute requires physical signatures for a document (like a will, trust, or related family law contracts), then an electronic signature may not be valid. Additionally, there are very specific exemptions listed in the ESIGN Act and the UETA.
Here are some of the reasons small businesses love e-signatures:
Here at Rally, we wanted to incorporate e-signatures into our platform to make things as easy as possible for small businesses. So we built e-signatures right into our platform at no extra charge. After you create your contract, you can just click send to client and we’ll send your client an email with a secure link to review the contract and to provide their e-signature. After they sign, you can sign, and then we’ll send a final copy to the parties. We also create an audit trail in case you ever need it.
There’s so much more to learn! Here are a few related guides you should read: