Partner Article

Electronic signatures are valid, confirms Law Commission – Conga comments

The Law Commission has declared that electronic signatures can be used to execute official documents – such as deeds – including where there is a statutory requirement for a signature. The Law Commission’s statement confirms the validity of e-signatures within business, consumer transactions, as well as contracts and legal documents, with the simple aim of ending uncertainty and increasing overall confidence in the use of this technology.

“We welcome the Law Commission’s new statutory requirements validifying electronic signatures in England and Wales,” said Matt Tuson, SVP & MD at Conga. “With business evolving significantly and commerce becoming increasingly automated, ensuring electronic signatures have the same validity as ink signatures is a huge step in the right direction.

“While the Law Commission report addressed concerns from stakeholders that electronic signatures are more susceptible to fraud, the reality is that handwritten signatures present a far greater risk. A recent study found that 75.9 percent of businesses had suffered serious business risk and compliance issues as a direct result of cumbersome, paper-based processes. On the contrary, electronic signatures have robust security precautions in place. Indeed, electronic signature technology must meet industry-recognised physical and technological security standards that guarantee secure transactions. This can significantly minimise fraud – for example, authentication can track the IP address of the signer, guaranteeing his or her identity. This has a greater level of accuracy than handwritten signatures and documents.

“The news today not only validifies electronic signatures, but it also confirms its ability to transform businesses – especially as they increasingly embrace digital document transformation (DDX). Electronic signatures eliminate labour-intensive and risky manual steps, cut unnecessary costs, improve efficiency, and create both a better customer and user experience,” Tuson concluded.

This was posted in Bdaily's Members' News section by Conga .