Is an Electronic Signature Legal?
July 26, 2026 · By SEDI Editorial Team · 6 min read
Electronic signatures are legally binding in most countries. Laws like the US ESIGN Act and the EU eIDAS regulation give electronic signatures the same legal weight as handwritten signatures for most business and personal documents. This guide covers what the law says and when an electronic signature may not be sufficient.
Are electronic signatures legally binding?
Yes. In the United States, the ESIGN Act and UETA make electronic signatures legally binding for most transactions. In the European Union, the eIDAS regulation provides a similar legal framework. Other countries including Canada, Australia, Japan, and India have equivalent laws.
The key requirement across all jurisdictions is intent to sign. The signer must demonstrate a clear intent to authenticate the document. Clicking a checkbox, typing a name, or drawing a signature on a canvas all constitute intent under the law.
Consent to do business electronically is also required. The signer must agree to receive documents and sign them in electronic form. Most online signing tools include a consent step before the signing process begins.
What types of documents cannot use electronic signatures?
Wills, family law documents (adoption, divorce), court orders, certain health insurance documents, and documents that require notarization are typically excluded from electronic signature laws. These vary by jurisdiction.
In the US, the ESIGN Act explicitly excludes wills, codicils, and testamentary trusts. Family law matters such as adoption and divorce decrees are also excluded. Court orders and official court documents generally require physical signatures.
Documents that require notarization present a special case. Some states now allow remote online notarization, where the notary verifies identity via video call and applies an electronic notary seal. Check local regulations for notarization requirements.
For most business documents — contracts, invoices, offer letters, non-disclosure agreements, purchase orders, and service agreements — electronic signatures are fully enforceable.
What is the difference between a simple electronic signature and a digital signature?
A simple electronic signature is an image or typed name placed on a document. A digital signature uses public key cryptography to verify the signer identity and detect tampering. Both can be binding, but digital signatures provide stronger evidence.
Simple electronic signatures include drawn signatures, typed names, or uploaded signature images. The SignPDF tool creates simple electronic signatures by embedding signature images into PDF files. These are suitable for most business and personal documents.
Digital signatures use a certificate-based system where a trusted authority validates the signer identity. The document is cryptographically signed, and any modification after signing invalidates the signature. Tools like DocuSign and Adobe Sign offer digital signature options with certificate validation.
For court disputes, a digital signature provides a stronger chain of evidence. A simple electronic signature may require additional evidence (emails, witness testimony) to prove authenticity. See the comparison guide for a detailed breakdown.
Do I need a special tool for legally binding electronic signatures?
No. Any tool that captures signer intent and produces a signed PDF can create a legally binding electronic signature. The legal validity comes from the signing process and intent, not from the tool itself.
What matters legally is the evidence that the signer intended to sign. This can include: a record of the signing session, IP address, timestamp, and the final signed document. The PDF signing tool guide discusses features that help establish evidence of signing.
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