Are Electronic Signatures Legally Binding in the UK?

Electronic signatures in UK businesses

In today's digital age, electronic signatures (e-signatures) have become an integral part of conducting business, especially in the tech sector. For tech businesses in the UK, understanding the legality of e-signatures is crucial. This blog will cover what e-signatures are, their legal status in the UK, best practices for their use, and how Cloud Contracts 365 supports compliant e-signature functionality. 

What is an Electronic Signature? 

An electronic signature, or e-signature, is a digital representation of a person's intent to sign a document. It can take various forms, such as: 

• Clicking an “I Agree” or “I Accept” button on a website. 
• Typing your name at the end of an email. 
• Using a stylus or finger to sign on a touchscreen device. 
• Employing e-signature platforms like SignNow, DocuSign or Adobe Sign. 

Whichever form is chosen,  

the best quality e-signatures must demonstrate three key factors: 

1. Authenticity – It must show who the signature has come from. 
2. Integrity -The signature must be free from interference or tampering. 
3. Non-repudiation - i.e. the e-signature must be concrete, and the person cannot deny that they signed the document. 

Legal Framework for E-Signatures in the UK 

E-signatures are legally recognised in the UK and are governed by several pieces of legislation: 

• Electronic Communications Act 2000 (ECA 2000): Defines electronic signatures and confirms their legal status. 
• Electronic Identification and Trust Services for Electronic Transactions Regulations 2016: Also known as the eIDAS Regulation, which was retained post-Brexit and amended by the UK eIDAS Regulation (SI 2019/89). 

According to these regulations, an electronic signature is data in electronic form that is attached to or logically associated with other electronic data and used by the signatory to sign. The UK recognises three levels of e-signatures: 

1. Simple Electronic Signature: Basic level, such as typing a name or ticking a box. 

2. Advanced Electronic Signature, that is:

• Uniquely linked to the signatory. 
• Capable of identifying the signatory. 
• Created using electronic signature creation data (in other words, a private encryption key) that the signatory can, with a high level of confidence, use under their sole control. 
• Linked to the signed data in such a way that any subsequent change in the data is detectable.  

3. Qualified Electronic Signature, that is:  

• supported by a qualified certificate issued by a qualified trust service provider, whose credentials have been recorded in a trusted list. 
• It must be created by a qualified electronic signature device.

Best Practices for Using E-Signatures 

To ensure the legal validity and security of e-signatures, follow these best practices: 

1. Use Reputable E-Signature Platforms: Choose platforms that comply with legal standards and offer robust security features like encryption and audit trails. 
2. Ensure Clear Intent: Make sure that the signatory's intent to sign is explicit, such as by requiring them to click a button or type their name with a clear statement of agreement. 
3. Check authority: Ensure that the person who’s signing the document has the authority to sign on behalf of the business in question. 
4. Maintain Records: Keep detailed records of the e-signing process, including timestamps and IP addresses, to establish the authenticity of the signature. 
5. Use Multi-Factor Authentication: Implement additional layers of security to verify the signatory's identity. 
6. Educate Your Team: Train your employees on the correct use of e-signature tools and the importance of compliance with legal standards. 

Cloud Contracts 365 E-Signature Functionality 

At Cloud Contracts 365, we understand the importance of efficient and compliant contract management for tech businesses. Our platform includes e-signature functionality that meets UK legal requirements and is available at no extra cost to our subscribers. Our e-signature tools provide: 

• Secure Signatures: With features like data encryption and user authentication to ensure the integrity and security of your documents. 
• Audit Trails: Detailed records of the signing process to help verify the authenticity of signatures. 
• Convenience: Allowing you to sign and manage contracts electronically, reducing the time and costs associated with traditional paper-based signatures. 

In summary, electronic signatures are legally binding in the UK, provided they meet certain criteria. By following best practices and using reputable e-signature platforms like those integrated into CC365, your business can streamline its contract processes while ensuring compliance with legal standards. For more information on how our e-signature functionality can benefit your business, visit our website (Cloud Contracts 365 | Contract Management Made Simple) or contact our support team (info@cloudcontracts365.com).