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Are Electronic Signatures Legally Valid?

Yes. Electronic signatures are legally recognized and enforceable in the United States, the European Union, the United Kingdom, Canada, Australia, and most countries worldwide. They carry the same legal weight as handwritten signatures for the vast majority of business transactions.

Electronic Signatures vs. Digital Signatures

These terms are often used interchangeably, but they mean different things:

  • Electronic signature — Any electronic indication of intent to sign, such as typing your name, drawing a signature, or clicking a Sign button. This is what Concord uses.
  • Digital signature — A specific type of electronic signature that uses cryptographic certificates (PKI) to verify the signer's identity. Digital signatures are a subset of electronic signatures and are required in certain regulated industries.

For most business contracts, agreements, and documents, a standard electronic signature is legally sufficient.

Laws That Govern Electronic Signatures

United States

Two laws establish the legality of electronic signatures in the US:

  • ESIGN Act (Electronic Signatures in Global and National Commerce Act, 2000) — A federal law that gives electronic signatures the same legal standing as handwritten signatures in interstate and foreign commerce. It applies to all "transactions" involving individuals, corporations, trusts, partnerships, and government agencies.
  • UETA (Uniform Electronic Transactions Act, 1999) — A state-level law adopted by 49 states and Washington, D.C. (New York has its own equivalent, the Electronic Signatures and Records Act / ESRA). UETA provides the legal framework for electronic records and signatures within state jurisdictions.

Under both laws, a signature cannot be denied legal effect solely because it is in electronic form.

European Union

The eIDAS Regulation (Electronic Identification, Authentication and Trust Services, 2014) governs electronic signatures across all EU member states. eIDAS defines three levels of electronic signatures:

  1. Simple Electronic Signature (SES) — Any electronic data used to sign, such as typing a name or clicking a button. Cannot be denied legal effect but offers the lowest level of assurance.
  2. Advanced Electronic Signature (AES) — Uniquely linked to the signer, capable of identifying the signer, and created using data under the signer's sole control. Provides stronger legal standing.
  3. Qualified Electronic Signature (QES) — An advanced signature created with a qualified certificate issued by a Trust Service Provider. QES has the same legal effect as a handwritten signature in all EU member states.

For most business contracts in the EU, a simple or advanced electronic signature is sufficient. Concord's e-signature with its audit trail and identity capture meets the requirements for simple and advanced electronic signatures.

Other Jurisdictions

  • United Kingdom — The Electronic Communications Act 2000 and the UK's retained version of eIDAS recognize electronic signatures. The UK Law Commission confirmed in 2019 that electronic signatures are valid for virtually all business transactions.
  • Canada — The Personal Information Protection and Electronic Documents Act (PIPEDA) and provincial electronic commerce acts (such as Ontario's Electronic Commerce Act) recognize electronic signatures.
  • Australia — The Electronic Transactions Act 1999 gives legal recognition to electronic signatures for Commonwealth, state, and territory transactions.

Electronic signatures are also legally recognized in most of Latin America, Asia-Pacific, and the Middle East, though specific requirements vary by country.

What Makes an Electronic Signature Enforceable?

For an electronic signature to hold up in a legal dispute, it needs to demonstrate four things:

  1. Intent to sign — The signer deliberately chose to sign. In Concord, this is demonstrated by the signer actively clicking the Sign button and confirming their signature.
  2. Consent to do business electronically — Both parties agreed to conduct the transaction electronically rather than on paper. By using Concord to send and sign documents, this consent is established.
  3. Association of the signature with the document — The signature must be linked to the specific document being signed, not just floating free. Concord's system ties each signature to a specific document and records which fields were signed.
  4. Record retention — A complete and accurate record of the signed document must be maintained and accessible to all parties. Concord stores signed documents and generates a Signature Certificate as proof.

How Concord Ensures Compliance

Concord's e-signature process is designed to meet these legal requirements:

  • Identity capture — Each signer is identified by their email address. External signers receive a unique link tied to their email.
  • Signature Certificate — Every fully signed document generates a PDF containing a complete audit trail: the identity of each signer (name and email), the date and time of each signature, the IP address used, and a chronological record of all document events (sent, viewed, signed).
  • Tamper-evident records — Once a document is fully signed, it is locked and cannot be modified.
  • Optional two-factor authentication — Administrators can require signers to verify their identity via SMS or email code before signing, adding an additional layer of identity verification.
  • Secure storage — Signed documents and their audit trails are retained in Concord's platform and remain accessible to all parties.

You can download the Signature Certificate from Export > Download Signature Certificate on any fully signed document.

Do Electronic Signatures Expire?

No. A valid electronic signature does not expire. Once a document is signed, the signature remains legally binding regardless of how much time passes. The signed document and its Signature Certificate serve as a permanent record of the agreement.

However, the underlying contract or agreement may have its own expiration terms — that is a matter of contract law, not signature validity.

When Electronic Signatures May Not Be Accepted

Electronic signatures are valid for the vast majority of business and personal transactions. However, certain document types may still require handwritten (wet ink) signatures or notarization depending on your jurisdiction. Common exceptions include:

  • Wills, codicils, and testamentary trusts
  • Family law documents (adoption, divorce decrees in some jurisdictions)
  • Court orders, warrants, and official court documents
  • Certain real estate documents (deeds and titles in some states)
  • Documents governed by the Uniform Commercial Code (negotiable instruments, promissory notes)
  • Notices of cancellation of utility services or insurance (in some states)
  • Documents requiring notarization (unless your jurisdiction allows remote online notarization)

These exceptions vary by jurisdiction. If you are unsure whether your specific document type is eligible for electronic signatures, consult with a legal professional.

Need More Help?

Contact our support team at support@concord.app.