But, is it legally binding?
It’s actually four questions in one…
Everyone always asks the same question: is it legally binding?
Through the years we have found that this question is actually four subquestions.
Is it legally binding?
If I e-sign, will it then become a legally binding agreement where the counterpart is actually required by law to honour the contract?
The answer to this question for 99.99% of all types of documents out there is straight forward: yes it is, world wide with very few exceptions. Contract law in different jurisdictions world wide does not typically require special form for a contract to become binding. So, contracts can be entered via a hand shake, phone recording, fax, paper signature, e-signature or any other means where the parties intention to become bound is clearly stated. Contract law does not discriminate between different methods of stating intention to form a contract.
Is the identification enough?
This is not really a legal question, it’s about business risk: “How high degree of identification of our counterpart do we need, to be able to execute the transaction?”
Sometimes very high security is required, as for example when selling a car or a phone with a leasing contract, then checking the ID is necessary to decrease the risk of fraud. In other cases the need is much lower, as for example at sales of cloud services, then the only risk is a missed payment and it is easy to just shut down the customers account if they don’t pay. Scrive’s position in relationship to the ID-question is simple: Scrive will implement any technology you require for identifying the counterpart. Scrive already has: eID, taking a photo of ID and two factor authentication via PIN by SMS.
Is the evidence useful in court?
Will the evidence material be useful in a conflict and will I be able to efficiently make use of the evidence material in a court situation?
This is a bit trickier question that requires a deeper analysis to be fully explained. Though, without digging too deep we can share the following: For multiple reasons, a document signed on paper has fairly high quality of evidence. Electronic evidence material must consciously be designed to have high enough quality and typically there is a lot of cheating going on. Scrive, on the contrary, is world leading in the quality of evidence and has, after many years of research, developed a format for electronic evidence material that makes the document basically 100% independent of Scrive or any other third party. To learn about the details of our unique solution read more here. Generally it is standard procedure to use electronic evidence material such as email, SMS and chat dialogues, in legal processes and the validity of the evidence materials that are supplied is rarely disputed.
Will my customers accept to e-sign?
This is obviously not a legal question, but of course no less relevant than the other three questions. If a counterpart refuses to e-sign or a third party refuses to receive an e-signed document, then the service used to e-sign becomes useless.
Today Scrive has hundreds of companies as customers and amongst those some of the strongest brands globally. Each month tens of thousands of documents are signed through our service in 16 countries on 4 continents. Our experiences show that it is extremely rare that the counterpart refuses e-signing. When someone refuses e-signing it is usually the third party receiving the document after it has been signed, that don’t have business processes that support receiving electronic documents or require a change of policy decision to approve of new technology. For example the operator Hi3G Nordics use e-signing for all their contracts in stores in Denmark and the statistics show that 97% of all customers accept to e-sign.
In fact it is not only so that customers very rarely refuse to e-sign, actually the opposite is the case, they love it! The feedback our customers get is that it is impressive and so much smoother and more modern. You are most welcome to see Scrives own customers share their experiences of e-signing.
Scrive’s answers to the questions
- Yes, globally.
- We help, you choose.
- We produce quality evidence.
- 97% accept to e-sign.