Electronic Signatures for Contracts — Legal Requirements Guide

Are Electronic Signatures Legally Binding on Contracts?

The short answer is yes — in most cases. Electronic signatures carry the same legal weight as handwritten signatures for the vast majority of contracts in the United States, European Union, United Kingdom, Canada, Australia, and dozens of other countries.

But the details matter. Different types of contracts may have different requirements, and the laws vary by jurisdiction. This guide breaks down what you need to know before signing a contract electronically.

The Legal Framework in the United States

Two major laws govern electronic signatures in the U.S.:

The ESIGN Act (2000)

The Electronic Signatures in Global and National Commerce Act is a federal law that establishes the legal validity of electronic signatures for interstate and international commerce. Under the ESIGN Act:

Electronic signatures cannot be denied legal effect solely because they are in electronic form
Electronic records satisfy any law requiring written records
Both parties must consent to conducting business electronically
Consumers have the right to receive paper copies if they choose

UETA (Uniform Electronic Transactions Act)

UETA is a state-level law adopted by 49 states (all except New York, which has its own Electronic Signatures and Records Act). UETA provides that:

A record or signature cannot be denied legal effect solely because it is electronic
An electronic signature satisfies any law requiring a signature
The parties must agree to conduct transactions electronically

Together, these laws mean that signing a contract electronically — whether by drawing a signature on a screen, typing your name, or clicking an "I agree" button — creates a binding agreement in nearly all cases.

The Legal Framework Internationally

European Union — eIDAS Regulation

The eIDAS Regulation (EU 910/2014) defines three tiers of electronic signatures:

Simple Electronic Signature (SES) — Any data in electronic form attached to other electronic data used for signing. This includes typed names, drawn signatures, and checkbox agreements.
Advanced Electronic Signature (AES) — Uniquely linked to the signatory, capable of identifying them, created using data under the signatory's sole control, and linked to the signed data so changes are detectable.
Qualified Electronic Signature (QES) — An advanced electronic signature created by a qualified signature creation device and based on a qualified certificate. This is the only type that is automatically equivalent to a handwritten signature across all EU member states.

For most business contracts within the EU, a simple electronic signature is sufficient. Certain regulated transactions — such as real estate transfers in some member states — may require an advanced or qualified signature.

For a deeper comparison of these three levels, see our guide on simple vs advanced vs qualified e-signatures.

United Kingdom

The UK recognizes electronic signatures under the Electronic Communications Act 2000 and common law. The Law Commission confirmed in 2019 that electronic signatures are valid for most contracts, including deeds (though deeds still have additional witnessing requirements).

Canada

Electronic signatures are valid under PIPEDA at the federal level and under provincial electronic commerce acts. Certain documents like wills, powers of attorney, and real property transfers may be excluded depending on the province.

What Types of Contracts Can Be Signed Electronically?

Electronic signatures are valid for the vast majority of contracts, including:

Employment contracts — Offer letters, NDAs, non-competes, and employment agreements
Freelance and consulting agreements — Service contracts, SOWs, and independent contractor agreements
Sales contracts — Purchase orders, sales agreements, and vendor contracts
Lease agreements — Residential and commercial lease contracts (in most jurisdictions)
Business-to-business agreements — Partnership agreements, licensing deals, and supply contracts
Insurance policies — Applications, policy changes, and claims
Financial agreements — Loan applications, account openings (with some exceptions)

What Contracts Cannot Be Signed Electronically?

Some types of documents are specifically excluded from electronic signature laws. In the U.S., the ESIGN Act excludes:

Wills, codicils, and testamentary trusts
Family law documents — Adoption, divorce, and other family court orders (varies by state)
Court orders and notices — Certain judicial documents
Utility cancellation notices — Notices of cancellation of utility services
Product recall notices — Official product safety recalls
Documents related to hazardous materials — Transportation of hazardous goods

State laws may add additional exclusions. For example, some states still require wet signatures for real property deeds, powers of attorney, or certain government filings.

What Makes an Electronic Signature Enforceable?

For an electronic signature on a contract to hold up, you generally need to demonstrate:

1. Intent to Sign

The signer intended to sign the document. Drawing a signature, typing a name in a signature field, or clicking an "I Accept" button all demonstrate intent.

2. Consent to Do Business Electronically

Both parties agreed to use electronic methods. This can be explicit (a checkbox saying "I agree to sign electronically") or implied by conduct.

3. Association of the Signature with the Record

The electronic signature must be connected to the document it was applied to. When you sign a PDF with a tool like SigPDF, the signature is embedded directly in the PDF file, creating a clear association.

4. Record Retention

You need to be able to store and reproduce the signed document. PDF is an ideal format for this because it is a stable, widely supported document format that preserves formatting and embedded signatures.

Best Practices for Signing Contracts Electronically

Keep a Copy of the Signed Document

Always download and store the fully signed PDF. Both parties should have a copy.

Use a Clear, Identifiable Signature

While a typed name or checkbox can be legally valid, a drawn signature more clearly demonstrates intent and is harder to dispute.

Add Date and Context

Include the date of signing and, if relevant, your title or role. This provides additional context that strengthens the signature's validity.

Use a Reliable Signing Method

Choose a signing tool that embeds the signature directly into the PDF rather than overlaying it. SigPDF permanently embeds your signature in the document, so it cannot be separated from the signed content.

Consider Privacy

Contract documents often contain sensitive business information. Choose a signing tool that respects your privacy. SigPDF processes files entirely in your browser — your contract never leaves your device. This is especially important for confidential agreements like NDAs and employment contracts.

How to Sign a Contract PDF

If you have a contract in PDF form that needs your signature, here is the fastest way to get it done:

Open SigPDF in your browser
Upload the contract PDF
Draw your signature
Place it on the signature line
Add the date using the text tool
Download the signed PDF

No account required. No files uploaded to any server. The signed PDF is ready to send back to the other party.

When to Seek Legal Advice

While electronic signatures are broadly valid, consult with a lawyer if:

The contract involves a large amount of money or high-risk transaction
The other party disputes the validity of an electronic signature
The contract falls into a category that may be excluded from e-signature laws
You are signing across international borders with countries that have different rules
The industry is heavily regulated (securities, real estate, government contracting)

Sign Your Contracts Confidently

Electronic signatures are legally valid, widely accepted, and far more efficient than the print-sign-scan cycle. For everyday contracts, a simple electronic signature created with SigPDF is all you need — fast, affordable, and private.

Sign Your Contract Now →