How to Make an Electronic Signature for Legal Documents: A Complete Guide

How to Make a Legally Binding Electronic Signature
How to Make a Legally Binding Electronic Signature

In today's fast-paced digital world, the slow, cumbersome process of printing, signing, scanning, and emailing legal documents feels like a relic from a bygone era.

It's a workflow bottleneck that consumes valuable time, wastes resources, and introduces unnecessary security risks. Fortunately, there's a modern, efficient, and legally sound alternative: the electronic signature.

But when it comes to legally binding agreements, contracts, and official forms, a simple scanned image of your signature won't suffice.

You need a method that is secure, verifiable, and compliant with global legal standards. This guide will walk you through everything you need to know about how to make an electronic signature for legal documents, ensuring your agreements are both valid and protected.

Key Takeaways

  1. Legality is Key: For an electronic signature to be legally binding on documents, it must meet specific criteria defined by laws like the ESIGN Act in the U.S.

    and eIDAS in the EU.

    This includes demonstrating intent to sign, ensuring signer consent, and maintaining an associated record of the signing process.

  2. Security is Non-Negotiable: Legal documents require robust security. A compliant electronic signature solution provides a comprehensive audit trail, user authentication, and encryption to prevent tampering and ensure authenticity. DIY methods often lack these critical protections.
  3. Dedicated Platforms Offer Superior Compliance: While tools like Word or Google Docs offer basic signature features, they may not provide the level of security and detailed audit logs required for high-stakes legal agreements. Professional platforms like eSignly are designed to meet stringent legal and regulatory standards, including HIPAA, SOC 2, and ISO 27001.
  4. Ease of Use Drives Adoption: The right solution should be simple for all parties involved. A seamless, intuitive signing experience ensures that contracts are completed quickly and efficiently, without technical hurdles for you or your clients.

Are Electronic Signatures Legally Binding? The Legal Framework Explained

One of the most common questions from businesses and legal professionals is whether an electronic signature holds the same weight as a traditional wet-ink signature.

The answer, in most parts of the world, is a resounding yes, provided certain conditions are met. Several key pieces of legislation establish the legal validity of e-signatures.

The ESIGN Act (United States)

The U.S. Electronic Signatures in Global and National Commerce (ESIGN) Act, passed in 2000, is a federal law that grants electronic signatures the same legal status as handwritten ones.

It stipulates that a contract or signature cannot be denied legal effect or enforceability solely because it is in electronic form. To comply with the ESIGN Act, a signature process must include:

  1. Intent to Sign: The signer must demonstrate a clear intention to sign the document, such as by clicking an "I Agree" button or drawing their signature.
  2. Consent to Do Business Electronically: Parties must agree to conduct the transaction electronically.
  3. Record Retention: The signed electronic record must be accurate and accessible to all parties involved.

The Uniform Electronic Transactions Act (UETA)

Adopted by 49 states, the District of Columbia, and the U.S. Virgin Islands, the Uniform Electronic Transactions Act (UETA) provides a legal framework at the state level.

It harmonizes state laws regarding electronic records and signatures, ensuring consistency with the federal ESIGN Act. Like ESIGN, UETA affirms that electronic signatures are legally valid if both parties have agreed to transact electronically.

eIDAS Regulation (European Union)

In the European Union, the eIDAS (Electronic Identification, Authentication and Trust Services) regulation governs electronic signatures.

It defines three levels of e-signatures: Simple, Advanced (AES), and Qualified (QES). For most legal documents, an Advanced Electronic Signature, which is uniquely linked to the signer and capable of identifying them, is sufficient.

A Qualified Electronic Signature offers the highest level of security and is legally equivalent to a handwritten signature across all EU member states.

Key Requirements for a Legally Binding E-Signature

Requirement Description
Signer Intent The process must capture the signer's clear intent to be bound by the terms of the document.
Signer Authentication The system must have a reliable method to verify the identity of the person signing (e.g., email verification, SMS code, or knowledge-based questions).
Document Integrity The signed document must be tamper-evident. Any changes made after signing should be detectable.
Audit Trail A comprehensive log must be created, capturing every action in the signing process, including timestamps, IP addresses, and signer actions.

For a deeper dive into the legal specifics, explore the law of electronic signatures for signing documents.

How to Create an Electronic Signature: 3 Common Methods

There are several ways to create an electronic signature, but not all are suitable for legally sensitive documents.

Let's compare the options.

Method 1: The Basic (But Risky) DIY Approach

This method involves creating an image of your signature (by signing on paper and scanning it, or using a touchpad) and pasting it into a document.

While simple, this approach is highly insecure for legal documents because it offers:

  1. No Authentication: Anyone with the image file can use it.
  2. No Audit Trail: There is no record of when, where, or by whom the signature was applied.
  3. No Security: The document can be easily altered after the signature image is added, with no way to detect the tampering.

Verdict: Avoid this method for anything more important than an informal internal memo.

Method 2: Using Built-in Features in Common Software

Platforms like Microsoft Word and Google Docs have built-in functionalities for adding signature lines or drawing signatures.

These are a step up from the DIY method but still have limitations for high-stakes legal agreements.

  1. Microsoft Word: You can add a digital signature line, which can be linked to a digital certificate for added security. Learn more about how to create an electronic signature on a Microsoft Word document.
  2. Google Docs: Google Docs allows users to draw a signature using the drawing tool or use third-party add-ons. Discover the steps for how to electronically sign documents in Google Docs.

Verdict: Suitable for low-risk documents, but they may lack the comprehensive audit trails and advanced authentication features required to be fully defensible in a legal dispute.

Method 3: The Secure & Compliant Way with a Dedicated Platform

This is the gold standard for legal documents. Dedicated electronic signature platforms like eSignly are purpose-built to ensure security, compliance, and legal enforceability.

They manage the entire signing workflow, from document upload to final archival.

Key advantages include:

  1. 🔒 Advanced Security: Multi-factor authentication, encryption, and compliance with standards like SOC 2 and ISO 27001.
  2. ⚖️ Legal Compliance: Designed to meet the requirements of the ESIGN Act, UETA, and eIDAS.
  3. 📋 Comprehensive Audit Trails: A detailed, court-admissible certificate is generated for every signed document, tracking every action.
  4. ⚙️ Seamless Workflow: Features like templates, bulk sending, and real-time status tracking streamline the entire process.

Verdict: The only recommended method for contracts, agreements, and any legally binding document.

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Step-by-Step Guide: Creating a Legal Electronic Signature with eSignly

Using a platform like eSignly simplifies the process of creating and using a legally binding electronic signature.

Here's how it works:

  1. Upload Your Document: Start by uploading your PDF, Word document, or other file format directly to the eSignly platform.
  2. Add Signers and Fields: Specify who needs to sign and in what order. Drag and drop fields onto the document for signatures, initials, dates, and other required information.
  3. Customize and Send: Add a personalized message for the recipients and click send. eSignly emails a secure link to each signer, notifying them that their signature is requested.
  4. Signers Review and Sign: The recipient opens the secure link, reviews the document, and follows the simple on-screen instructions to adopt a signature. They can choose to type their name, draw their signature, or upload a signature image. This action is captured with their clear intent to sign.
  5. Receive the Final, Tamper-Sealed Document: Once all parties have signed, everyone receives a copy of the finalized document. A detailed audit trail, or Certificate of Completion, is attached, providing a comprehensive record of the entire signing event.

This entire process is designed to be intuitive and efficient, helping you process legal agreements without any fuss.

For a more detailed walkthrough, see our guide on how to create an electronic signature for legal documents with eSignly.

What to Look for in an Electronic Signature Solution for Legal Use

When choosing a platform for legal documents, not all solutions are created equal. Prioritize providers that demonstrate a strong commitment to security and compliance.

Here is a checklist of essential features:

✅ Security and Compliance Checklist

  1. Industry Certifications: Look for compliance with rigorous international standards. Key certifications include ISO 27001 for information security management, SOC 2 Type II for data security, and HIPAA for handling protected health information.
  2. Data Encryption: Ensure that data is encrypted both in transit (while being sent) and at rest (while stored on servers).
  3. Legal Compliance: The provider should explicitly state compliance with major e-signature laws like the ESIGN Act, UETA, and eIDAS.
  4. Comprehensive Audit Trails: The platform must generate a detailed audit log for every transaction. This log should include signer names, email addresses, IP addresses, and a timestamped history of every view, click, and signature.
  5. Strong User Authentication: Multiple options should be available to verify a signer's identity, such as email, SMS passcodes, or knowledge-based authentication (KBA).
  6. Secure Record Keeping: The platform must securely store and make signed documents accessible to all authorized parties for the required retention period.

Investing in a platform with these features not only ensures your signatures are legally sound but also protects your sensitive information.

Learn more about tips on how to make your electronic documents more secure.

2025 Update: The Evolving Landscape of Digital Signatures

As technology advances, the world of electronic and digital signatures continues to evolve. Looking ahead, we see a few key trends shaping the future of secure digital agreements.

While the core legal principles established by laws like the ESIGN Act remain the foundation, new technologies are adding layers of security and functionality. Expect to see wider adoption of identity verification methods tied to digital wallets and an increased role for AI in reviewing contracts for anomalies before the signing process even begins.

However, the fundamental need for a secure, auditable, and user-friendly platform remains constant. The principles outlined in this guide-focusing on legal compliance, robust security, and comprehensive audit trails-will continue to be the bedrock of trustworthy electronic signatures for years to come.

Conclusion: Sign with Confidence and Certainty

Making an electronic signature for a legal document is about more than just convenience; it's about adopting a secure, efficient, and legally defensible process.

While basic tools might seem adequate, the risks associated with improper signing methods can be significant, potentially invalidating your most critical agreements.

By choosing a dedicated, compliant platform like eSignly, you ensure that every document you send for signature is backed by robust security, a comprehensive audit trail, and adherence to global legal standards.

You empower your business to move faster, reduce operational friction, and provide a superior experience for clients and partners-all while maintaining the highest level of legal integrity.

Expert Review: This article has been reviewed by the eSignly Expert Team, which includes specialists in B2B software, information security (ISO 27001, SOC 2), and international e-signature law.

Our team is dedicated to providing accurate, actionable, and authoritative content to help businesses navigate the complexities of digital transformation.

Frequently Asked Questions

What is the difference between an electronic signature and a digital signature?

The terms are often used interchangeably, but they have distinct meanings. An 'electronic signature' is a broad term for any electronic process that indicates acceptance of an agreement.

This could be a typed name, a scanned image, or a click on an 'I agree' button. A 'digital signature' is a specific, highly secure type of electronic signature. It uses a certificate-based digital ID to encrypt the document and permanently embed the signing information.

All digital signatures are electronic signatures, but not all electronic signatures are digital signatures.

Can an email be considered a legally binding electronic signature?

In some cases, yes. Courts have upheld that an email, particularly one where a person types their name at the end, can signify intent and serve as a valid electronic signature under the ESIGN Act.

However, relying on email for formal agreements is risky. It lacks the security, authentication, and detailed audit trail that a dedicated e-signature platform provides, making it much harder to defend in a legal dispute.

Are there any documents that cannot be signed electronically?

While the vast majority of business and personal documents can be signed electronically, some exceptions still exist.

These vary by jurisdiction but often include documents that require a higher level of formality, such as wills and testamentary trusts, court orders, and official documents that require notarization (though remote online notarization is becoming more common). Always check local and national laws for specific exclusions.

How can I prove who signed a document electronically?

This is where a dedicated platform like eSignly is critical. Proof of signature is established through the comprehensive audit trail, also known as a Certificate of Completion.

This document provides court-admissible evidence of the entire signing process, including the signer's verified email address, their IP address, a chain of custody with timestamps for every action (viewed, signed, etc.), and the final, tamper-sealed document.

Do my clients or customers need an eSignly account to sign a document?

No, and this is a key benefit for user experience. Signers do not need to have an eSignly account, pay any fees, or download any software.

They simply receive an email with a secure link to the document, which they can open and sign on any device with an internet connection (computer, tablet, or smartphone).

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