The ultimate guide to electronic signatures in 2024

Electronic signatures enable businesses to close deals faster and more efficiently. 

This post covers everything you need to know, from eSigning looks like in pratctice to the best electronic signature software on the market in 2024. 

What is an electronic signature?

An electronic signature is the use of a digital impression, markup, or element to signify that the person adding their signature agrees to the terms in the contract they’re signing.

It’s different from a ‘wet signature’ where parties are required to physically make a mark on a paper contract with a pen. Instead, electronic signatures are created on devices such as desktops, tablets, and mobiles. 

This modern approach to contract signing has been adopted right across the world, and electronic signatures can be used to sign all types of documents in 2024.

What is the purpose of an electronic signature?

The main purpose of an electronic signature is to empower individuals and businesses to sign documents online in a legal, secure and efficient way.

Electronic signatures enable signatories to close deals, form new relationships and set terms without having to meet in-person. Instead, they can sign documents digitally on any device and in an environment that suits them.

What is accepted as an electronic signature?

Any electronic process that confirms and communicates an individual's agreement to certain terms can constitute an eSignature. 

This means it needs to be clear that the signatory actually intended to sign the agreement. This can be achieved by inserting a signature in the digital document, usually in a signature box. 

Certain jurisdictions will have more specific requirements about what makes an eSignature valid, though. That’s why it’s always important to check where eSignatures are accepted before using them. 

Benefits of electronic signatures

1. Parties can sign contracts from anywhere 

Signing contracts electronically removes the need for parties to be in the same room to close a deal or sign a contract. The ability to sign contracts online enables parties to sign contracts remotely and collaborate on contracts from anywhere in the world. 

Contracts can be signed over email, via mobile technology, or in-browser using a contract management solution like Juro. This flexibility makes it quicker and easier for businesses to get agreements signed, wherever they are. 

2. More secure than wet ink signatures 

Electronic signatures also offer an extra layer of security compared to traditional wet ink signatures. 

You can ask someone to witness a wet ink signature being added to a contract, but there are usually no records of the signature beyond that.

But when you sign a contract electronically through a platform like Juro, an immutable document record is created by default. This record captures: 

• The signer’s identity 
• The signer’s IP address
• What device was used to sign the contract
• The date and time of signing

Juro also captures when counterparties have viewed a contract, along with all of the different versions of a contract as they move through the contract lifecycle.

Who uses electronic signatures?

Electronic signatures are used widely across businesses, with most departments using eSignatures to get contracts over the line. 

Sales reps typically sign MSAs and SOWs electronically, for example. This is because it enables them to close deals without needing to be in the room with the prospect. 

Talent teams can often add eSignatures to employment contracts and offer letters when they want to make a new hire, too. 

Signing contracts online enables teams like yours to sign contracts faster and with more flexibility around where and when they do so. 

Are eSignatures legal?

Electronic signatures are widely regarded as legally binding. However, different jurisdictions have different laws on the legality of eSignature. 

They have been regarded as legally binding since 2000 when the Electronic Communication Act was introduced in the UK. 

They are also deemed legally binding within the EU, so long as certain conditions have been met. This is outlined within the eIDAS regulation, which was introduced in 2016. 

Under the ESIGN Act, electronic signatures are also allowed in all 50 US states where federal law is applicable. This means that eSignatures carry legal validity across most of the US. 

How to create an electronic signature

The most common and professional way to create an electronic signature is by using a specialist eSignature tool.

This is because eSignature software is designed specifically for signing contracts, and this is reflected in their rich feature set.

For example, businesses that sign contracts using a tool like Juro or DocuSign can sign contracts in bulk, send customizable signing requests, and benefit from stringent security and validation measures.

However, not all businesses create electronic signatures in this way. Some businesses will rely on different tools to sign their contracts, and their chosen method typically depends on where they manage their contracts, and what format these contracts take. 

To find out exactly how to create an electronic signature in different platforms, check out the guides below:

• How to sign a PDF 
• How to add a signature in Word 
• How to add a signature in Google docs
• How to insert a signature in Excel
• How to sign contracts on an iPhone 
• How to scan a signature 

These eSignature methods are all completely free, but often limited. They lack the features legal and business teams need to manage contracts more broadly, and the counterparty experience is an afterthought.

But, as we mentioned, there's a better way to eSign contracts. You can use a contract management platform with native eSigning functionality. Let's explore this option in more detail now.

The best way to sign contracts electronically

The best way to eSign contracts is to use a platform like DocuSign or Juro that was designed to get contracts and other documents agreed faster. You can compare these tools in this guide to electronic signature software.

Juro’s secure and native eSignature enables businesses to sign contracts securely on any device, without switching tools to agree terms. 

Juro's advanced electronic signature (AdES) standard complies with eIDAS, E-SIGN and UETA acts, meaning it meets stringent security standards around the world. 

Juro’s eSigning functionality also enables teams to set up signing waterfalls and sequential signatories - with no coding required. This makes Juro a great solution for businesses that need to set up flexible eSigning workflows. 

Juro delivers value beyond eSignature, too. Juro’s all-in-one platform enables your team to agree and manage contracts in one unified workspace. 

{{Ulrika | Tibber | eSigning tool saving}}

Juro's secure, native eSignature means you don't need to switch tools to agree terms. Get it all done in one platform - on any device. That time saved, and friction removed, will be the best return on investment.

To find out more about how Juro enables businesses to get to revenue faster by streamlining collaboration and signing, hit the button below to book a personalized demo. 

Frequently asked questions

What is meant by electronic signature?

Electronic signatures are another way to provide consent or approval for contracts and other documents, without needing to provide a wet ink signature. 

It’s the use of a digital markup or impression to signify that the individual creating it has agreed to the terms of an agreement, much like an ordinary signature but in a digital form.

Is DocuSign considered an electronic signature?

Yes. DocuSign is one example of an electronic signature provider. However, there are lots of DocuSign alternatives available if you’re looking for a cheaper or more rounded solution.

Are electronic signatures admissible in court?

Yes. Electronic signatures can be admissible in court just like wet ink signatures, so long as they meet the individual requirements set out by the governing jurisdiction. 

Do electronic signatures require a witness?

Under English law and in many jurisdictions, most contracts will not need any signature to be witnessed, regardless of whether it occurs in wet ink or electronically. 

However, there are still some circumstances where legal documents do need to be witnessed when signed, such as for land transfers, security documents, and other types of deed, including but not limited to shareholder agreements, loan documents, and the transfer of assets. 

It’s also possible that parties will request for eSignatures to be witnessed for added security in other cases. Fortunately, like ordinary signatures, electronic signatures can still be witnessed to ensure these agreements are legally binding.

Is a PDF signature an electronic signature?

It is possible for a signature on a PDF to constitute an electronic signature. 

What are the differences between digital signatures and electronic signatures?

Contrary to what most think, digital signatures and electronic signatures are different features that achieve different purposes.

Read more on our digital signature vs electronic signature comparison page. 

Do electronic signatures need to be certified?

According to the European Commission, you must have a valid digital certificate in order to create an electronic signature that constitutes either an advanced or qualified eSignature.

Can you just type your name for an electronic signature?

Yes, electronic signatures can be created by typing your name into a contract, electronically pasting your signature, or by making a different type of markup that satisfies the regulations. 

Can electronic signatures be forged?

Electronic signatures are actually less likely to be forged than wet signatures are. This is because wet signatures are easier to forge and tamper with, whereas electronic signatures are often accompanied by certain security measures, like digital signatures. 

How can you verify an electronic signature?

An electronic signature can be verified by checking that the contract's eSignature was signed by the authorized signatory and that this signatory can be identified.

Juro enables users to see the exact email of the person signing, as well as their IP address and the exact time and date when they signed the contract.

How long is an electronic signature valid?

An electronic signature has the same validity as a wet ink signature, which means that an eSignature is valid for the entire contract duration.

Can you create electronic signatures at scale?

Yes. Juro’s native eSignature functionality enables business and legal teams to sign contracts electronically in bulk. Check out our guide to bulk actions to find out more.