Electronic signatures have been legally recognized in the United States since the ESIGN Act of 2000, and across the EU under eIDAS since 2016. But there's still widespread confusion about what they are, when they're valid, and how they differ from digital signatures.
What Is an Electronic Signature?
An electronic signature (e-signature) is any electronic symbol, process, or sound attached to a document to indicate intent to sign. This includes: a typed name, a drawn signature, a clicked checkbox, or even an emailed confirmation.
E-Signature vs Digital Signature
These terms are often used interchangeably but they mean different things:
- Electronic signature — broad legal concept: any mark indicating intent
- Digital signature — a specific cryptographic technique that verifies authenticity and detects tampering
- All digital signatures are e-signatures, but not all e-signatures are digital signatures
When Are E-Signatures Legally Binding?
In most cases, yes — with a few exceptions. E-signatures are generally NOT valid for:
- Wills and testamentary trusts
- Court orders and official court documents
- Adoption and divorce papers (jurisdiction-dependent)
- Certain real estate transactions (jurisdiction-dependent)
For everyday contracts, NDAs, employment agreements, and business documents — e-signatures are fully enforceable under U.S. and EU law.
Best Practices for E-Signing
- 1Keep a copy of the signed document
- 2Record the date and time of signing
- 3Use a tool that doesn't store your document on a server
- 4For high-value contracts, use a service with audit trails
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