What is an Electronic Signature? Complete Guide
Everything you need to know about e-signatures: legal validity, types, and how to use them.
Published 2026-04-15 · 9 min
Definition
An electronic signature (e-signature) is any electronic process that indicates intent to sign and is associated with a specific record. This includes typed names, drawn signatures on a touchscreen, clicked 'I Agree' buttons, and uploaded scanned signatures.
Legal Validity
E-signatures are legally binding in the US under the ESIGN Act of 2000 and the Uniform Electronic Transactions Act (UETA), adopted by 49 states. Internationally, they're recognized under eIDAS in the EU, PIPEDA in Canada, the Electronic Communications Act in the UK, and equivalents in 60+ countries.
Types of E-Signatures
What Makes E-Signatures Enforceable
Four elements must be present: (1) intent to sign, (2) consent to do business electronically, (3) association of signature with record, (4) record retention. Reputable e-signature platforms (iContract, DocuSign, Adobe Sign) handle all four automatically through audit trails.
Choosing an E-Signature Platform
Key features to look for: legal compliance (ESIGN, UETA, eIDAS), audit trail (timestamp, IP, device info), multi-party signing (sequential or parallel), mobile support, template library, API access for integrations, storage of signed documents. iContract offers all of these in a free tier; DocuSign and Adobe Sign offer them in paid tiers ($10-65/month).
FAQ
Are e-signatures as legal as wet signatures?
Yes, in nearly all cases. The ESIGN Act explicitly states e-signatures cannot be denied legal effect solely because they're electronic. Exceptions: some wills, divorce decrees, and specific real estate deeds in certain states.
Do I need a special platform to use e-signatures?
Strongly recommended. Platforms like iContract create the audit trail courts require: timestamp, IP address, signer authentication, document hash. A typed name in a Word doc is technically an e-signature, but the missing audit trail makes it hard to enforce.
Can I use a typed name as an e-signature?
Yes — it's legally valid under ESIGN. For higher-value contracts, use a drawn signature on a touchscreen or a platform that adds verification (email confirmation, SMS code, etc.).
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