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Our interactions are becoming more digital every day. 

For many of us in business, this means transacting in a digital or electronic way with our clients. 

A question I'm asked all the time by my clients is whether having their clients sign their agreements electronically is legal.

Today, I’m diving into this topic and explaining the differences between digital and electronic signatures, when they’re okay to use and the circumstances in which they normally aren’t.

For most service-based businesses, sending out client agreements or cost disclosures and requesting an electronic or digital signature is generally lawful and binding.

However, there are exceptions. Certain documents require a more traditional form of signing. These exceptions often involve contracts dealing with land, commercial leases or agreements necessitating a witness. Although some digital platforms like DocuSign can be used under certain conditions (e.g. a witness present via Zoom), this depends on the specific document and the legislation in place.

While there's a steady shift towards accepting digital and electronic signatures for basic contracts and memorandums of understanding, some traditional requirements persist as the law catches up with our changing world. 

The bottom line is that for most straightforward service agreements and terms and conditions, digital and electronic signatures are lawful and practical. But, best practice is: if you’re unsure, ask!


LINKS:

Resources mentioned: 'Briefing Notes' Email Signup

Episode Website:  https://tmsolicitor.com.au/rise-up-in-business-podcast/save-time-sign-online-is-it-legal-to-sign-digitally

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