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With each day that passes, the world is becoming more ‘digitized,’ and businesses have learned to leverage the power of technology to simplify processes.

One emerging technology that has marked a new milestone in businesses is the use of electronic signatures. What previously took days of shipping a contract, printing, signing, and returning it signed now happens instantly.  

There are many applications and services available such as the Docsketch free electronic signature that allows you to sign your documents online without spending a dime.

But this begs the question: Does an electronically signed document hold the same legal weight as one signed with a pen and ink? It all depends on the electronic signature’s assurance level. In this guide, you’ll learn about the rules for electronic signatures and their different trust levels.

What Makes an Electronic Signature Legally Binding in the US?

In 2000, the US government passed the ESIGN Act to regulate the adoption of electronic signatures.

In addition to the ESIGN Act, the Uniform Electronic Transactions Act (UETA) also provides guidelines for e-signature use per state.

Both of these acts grant e-signatures the same right and legal weight as manual signatures in the US. However, for electronic signatures to be deemed valid, the following requirements must be met.  

• The intent to sign must be established. There must be mutual consent between both parties.
• Both parties must express their consent to engage in electronic business transactions. A good electronic signature software should prompt the users to confirm consent.
• Both parties must receive a copy of the signed document. Most electronic signature software can do this automatically.
• There should be an opt-out clause that allows the signer to decline to sign if they prefer to do it manually.

If any of the above conditions are not met, the electronic signature may not be deemed valid in the eyes of the law.

Different Electronic Signatures Trust Levels  

Many regulations have developed their own electronic signature classifications based on trust and assurance. These classifications (trust levels) signify the level of assurance provided by each type of signature. The three recognized trust levels are basic, advanced, and qualified trust levels.

Basic Trust Level

The basic (also called standard level) trust level has very low requirements and low legal standing.

It can comprise of anything from entering your name in a box to checking a T&C’s box to printing and manually signing the form, etc. However, these types of e-signatures have a low legal standing because it can be hard to verify the identity of the signatory.

Advanced Trust Level

The advanced trust level requires that:

•         There is a unique identifier to prove who signed the document
•         The signature key is only accessible by the signer of the document
•         It’s possible to prove that the document was not tampered with.

This assurance level is sufficient for many, if not all businesses as it makes it possible to prove the authenticity of a transaction.

Qualified Trust Level

A qualified trust level basically has the same standing as the Advanced Trust Level. Since it’s more improved, it could be used for future implementations of complex projects or cross-border services.

For more information about electronic signatures and how to use them, contact Docsketch.