Tag Archives: contract signature

Are Customer’s Signatures on Electronic Contracts Valid?

Ask the Attorney:  I’d like to go paperless. If I have my client sign the contract electronically, is that valid?

 Yes, electronic signatures are valid.  The laws, E-SIGN and UETA , require that the signature be attributable to the customer.  That is, the signature is valid even if it is electronic, but you must still be able to show that it was the customer who signed and not someone else who didn’t have authority to sign.  Here is what the UETA says:

“An electronic record or electronic signature is attributable to a person if it was the act of the person. The act of the person may be shown in any manner, including a showing of the efficacy of any security procedure applied to determine the person to which the electronic record or electronic signature was attributable.”

So, if your customers are signing via iPad, or other portable electronic device, you can prove it is the customer’s signature in any manner, including your security procedures.  That gives you a lot of leeway to craft your own procedures, such as writing down the license or ID number or taking a photo of the customer’s driver’s license or ID card.

In conjunction with these security procedures, you need your customer’s signed consent for the electronic contract and electronic signature, which also states that the customer is providing a driver’s license/ID card or photo while signing as proof that the contract is attributable to him or her.

Who Has Authority to Sign the Customer’s Contract?

Ask the Attorney:  I sold an alarm system to a local business. The business owner wasn’t available to sign the contract, but she told me to have the assistant manager sign the contract instead. Is that OK?

The agreement is enforceable if the person who signed it had apparent authority to sign.  If the company told you (or the circumstances reasonably led you to believe) that whoever signed had authority to do so, the customer cannot later claim the contract is unenforceable because the “appropriate” person didn’t sign it. If you can, document the situation—save the emails or write a memo explaining who signed and why and keep it in your customer’s file.

6 Small Contract Mistakes That Can Sink Your Business

Sometimes it’s the little details that can make or break your contract.  Attorneys pay a lot of attention to the larger—seemingly more important—contract terms, such as limitation of liability and damages, subrogation waiver and indemnity.  But oftentimes it is something small, but no less important, that can spell doom (or at least a major headache). Continue reading →

Security Alarm Contract Essentials Checklist

Don’t rest easy just because you have a contract with your customer.  Whether your contract will be enforced by a court, or even applies at all if you are sued, depends entirely on what your contract says.  Many alarm contracts I see, a staggering number actually, are riddled with errors that could make them useless. These contracts either simply don’t have the right provisions, or they say the wrong thing.   This puts the business in jeopardy if a customer ever experiences a loss.  Are you in that same boat? Here are some questions to ask your business. Continue reading →