Electronic Signature | Meaning and Definition

What is Electronic Signature? 

A document is electronically signed, meaning a person can affix their digital signature while giving consent online. Those days were gone when people preferred using pen and paper. With more and more digitalization, governments and companies are switching over to the new and faster digital modes of living. It eliminates the need for the person’s physical presence for signing and verification of an eyewitness (used in ancient times).

Digital Signature Definition – A Digital Signature is primarily meant to safeguard documents and is certified by certification authorities.

What is e signature? It is a process by which a person’s digital signature could be used in place of a traditional pen and paper signature

What is an electronic signature – It is a person’s online signature that could be used for the legal binding of contracts.

Applications of e signature – It is legally binding and used by every country ranging from poor to developed countries. Typical areas where electronic signatures could be used include contractual agreements, invoices, legal documents, financial documents, etc.

Departments where e-signatures are used include sales, human resources, procurement, legal, admin, marketing, and finance.

Benefits of electronic signature

1. It is very cost-effective.
2. More eco-friendly as it eliminates the need for paper
3. It is more secure and prone to lesser errors (It can be password protected, which will remain only in the hands of a few concerned people)
4. Legally binding (Many governments, government and private entities accepted these signatures for all their legal contracts)
5. Simple and most efficient system (Just need an internet system and avoids physical presence)