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Businesses should be careful with electronic contract signatures

10/13/2011

In the digital age, many negotiations regarding software contracts are conducted remotely over the web, and the various parties may never actually meet in person. That proliferation of electronic discussion has also led to the growth of electronic signatures.

However, as Findlaw.com reports, business owners should be careful about what situations they use electronic signatures, since they aren't always valid.

To start, the legal site says that in their basic form, electronic signatures are perfectly fine for electronic contracts which don't use any physical paper. They can take the form of a space to initial, type a full name or even a simple "I agree" notation.

However, it says that these signatures are not always legally valid. For example, many contracts involving court notices, insurance plans or other documents must be physically signed.

The site says that if business owners are unsure if an electronic signature if acceptable in a specific situation, they may want to have a brief consultation with a business lawyer to make sure.