The Legality of Electronic Signatures in 2025

When considering switching to electronic signatures, most businesses have questions about the legality of this modern technology; they want to ensure that digital signing is secure and of course, legally enforceable.

At eSign, we know the many benefits that an electronic signature can bring to a business, such as improved document turnaround and an enhanced customer experience for clients. But we want every business, in every sector, to have the confidence to make the switch.

The short answer to are electronic signatures legally binding is yes, but the details depend on where you are, what you’re signing, and how the signature is captured. In the UK and many other countries, electronic signatures are widely accepted as legally valid. However, there are certain rules, best practices, and exceptions you should be aware of to ensure your e-signatures hold up in court. That’s why we’ve decided to answer your most pressing questions about eSignatures and their legality.

By the end of this guide, you’ll know exactly how to use electronic signatures safely and legally—whether you’re a business owner or just someone who hates paperwork!

 

What is an Electronic Signature?

An ‘electronic signature’ is a digitalised version of the traditional handwritten signature, which can be used to sign digital documents, so there’s no need for printing or scanning. An electronic signature can be as simple as a tick box plus declaration, scanned signature, or digitally drawn signature. This is known as a simple electronic signature, and is one of the types of e-signatures defined in the most common industry regulation; eIDAS (electronic identification and trust services).

However, it’s important to note that simple e-signatures are often not legally binding, particularly in use cases for official documents that handle sensitive data such as in the government, legal, and healthcare sectors.

For increased security, legal validity, verification, and compliance, it’s commonly accepted that advanced or qualified electronic signatures should be used. Both advanced and qualified e-signatures follow strict security and identity verification criteria established by eIDAS, ensuring that they are fully legally binding.

eSign’s platform provides advanced electronic signatures as standard. It identifies the signer, creates a time stamp using their IP address and will detect any changes made to the document after signing has been carried out.

 

Digital vs electronic signatures

When it comes to defining signatures online, there are two key terms: digital signatures and electronic signatures. Despite the terms often being used interchangeably, there are differences between these signatures that you should be aware of.

 

What’s the Difference Between eSignatures and Wet Signatures?

A wet signature is a traditional way of signing a document by putting pen to paper. It indicates the signer’s intent to agree to the contents of a document or to a set of data to which the signature relates, making them legally binding. Putting pen to paper has been an established way of carrying out business for hundreds of years. Yet in an increasingly digital world, the humble handwritten signature was forced to evolve to keep up.

Thus the electronic signature was born! Whether you’re typing out your signatures or digitally drawing them with your mouse cursor, the electronic signature enables you to sign documents online- without having to print them out and sign by hand.

 

Are Electronic Signatures Legally Binding?

Yes, electronic signatures are legally binding across the UK, EU, United States, and many other countries worldwide. However, their legal status depends on specific regulations and whether the e-signature meets certain requirements.

 

1. UK Law: The legality of electronic signatures

Electronic signatures are legally confirmed and valid in the UK under the following regulations:

The Electronic Communications Act 2000 – Establishes that digital contracts and signatures are legally valid.

The eIDAS Regulation (EU Regulation No. 910/2014) – Still applies post-Brexit through the amended UK eIDAS and outlines three levels of e-signatures:

• Simple Electronic Signatures (SES) – Basic signatures like typing a name or clicking an “I Agree” button.
• Advanced Electronic Signatures (AES) – More secure, uniquely linked to the signer, and capable of detecting changes.
• Qualified Electronic Signatures (QES) – The highest level, equivalent to handwritten signatures in any EU court.

In 2019, the Law Commission published a report confirming the validity and legality of eSignatures in executing documents in the UK, including where there is a statutory requirement for a signature. This is supported by the Consumer Rights Act 2015, which also acknowledges the legal validity of e-signatures.

 

2. US & international recognition

• The ESIGN Act (2000) & UETA – Legally recognise e-signatures across all US states at a federal and state specific level.
• Global Adoption – Countries like Canada, Australia, and India have similar laws, though some (e.g., China, Brazil) impose extra requirements.

For more information about the legal validity of electronic signatures in different countries and eSignature Laws view our recent blog on eSigning Internationally.

 

3. What makes an eSignature legally binding?

For an electronic signature to be legally enforceable, it must meet four key conditions:

• Intent to sign – The signer must show a clear intent to sign (e.g., applying and confirming their signature).
• Consent to do business electronically – Both parties must agree to use electronic signatures.
• Unique to the signer – The signature must be tied to the signer (e.g., via email verification, IP tracking, or authentication methods).
• Integrity of the document – The signed document must be tamper-proof, with an audit trail proving it hasn’t been altered.

 

4. When are electronic signatures NOT legally valid?

While e-signatures are widely accepted, there are exceptions where a wet signature (handwritten) is still required, including:

• Wills & Testamentary Documents
• Certain Real Estate Transactions (varies by country)
• Court Orders & Affidavits
• Birth, Marriage, and Death Certificates

 

Are eSignatures Admissible in Court?

Yes, electronic signatures are admissible in court. The electronic signature itself demonstrates the intention to agree to the contents of the document. They can also provide additional evidence of ‘intention’ that handwritten signatures cannot supply. With handwritten signatures, the validity is established by comparing copies of the signature with testimonies from handwriting experts or witnesses of the signing.

Thanks to the electronic signature’s audit trail which contains information such as the IP address, location, and date/time stamp, determining the authenticity of an electronic signature is actually easier, more time-efficient and cost-effective.

 

Real-World Cases of eSignature Legality

There are few cases in the UK addressing the validity of electronic signatures. This is likely due to the strong consensus that an e-signature is legally acceptable in confirming the signer’s intent to agree to the contents of a document.

When court cases have taken place involving e-signatures, the dispute has typically been about whether a specific signature requirement was satisfied, whether the informal adding of a name was intended to be a signature, or whether the correct individual applied a signature. One example of this is the Hudson v Hathaway (2022) case.

In this case, the court ruled that an email with a typed name can legally transfer an interest in land. Mr. Hudson told Ms. Hathaway via email that she could have full ownership of their jointly owned home. The court found that his email met legal requirements under the Law of Property Act 1925, granting Ms. Hathaway sole ownership. The case confirms that electronic signatures can be valid for property transactions.

 

Legal Requirements for Electronic Signatures

The exact e-signature legal requirements can vary from country to country, as we will see later on in this guide, but there are some common requirements to be aware of when considering the overall legality of electronic signatures. 

• Identification – the signature must be uniquely linked to the signer and only them, with the ability to identify them.
• Data link – the signature must be linked to the data it relates to, this will ensure that any changes to the data can be identified.
• Control – the signer must have full control over the signature and the means used to create it.
• Protecting the signature – the signature must be securely attached to the document and not stored separately. Proper security measures will prevent tampering with the signature.
• Copy to signer – a copy of the signed document must be provided to the signer once finalised.

 

How to Ensure an Electronic Signature is Legally Enforceable

When using electronic signatures in your document processes, it’s essential to ensure that the signed documents are legally binding and valid. Maintaining legal enforceability involves meeting specific legal, security, and verification standards. Here’s what you need to know:

 

Use a legally recognised e-signature method

As we have explored, simple e-signatures are the most basic type of signature, lacking security, identity verification and evidence for legal enforceability. Therefore, if you’re regularly sending high-value contracts or sensitive documents, an advanced electronic signature (AES) or in strictly regulated industries, a qualified electronic signature (QES) provided through a trusted platform like E-Sign, will be a more suitable solution for your needs to ensure the legal validity of your documents.

 

Verify the signer’s identity

A valid e-signature must be clearly linked to the signer. Ways to verify identity include:

• Email or SMS authentication – The signer confirms their identity via a unique link or one-time password.
• IP tracking & device identification – Logs the location and device used for signing.

 

Keep a strong audit trail

For a signature to be legally enforceable, you need clear evidence of how, when, and by whom it was signed. A digital audit trail should include:

• Timestamps – The exact date and time of signing.
• Signer details – Name, email, IP address, and device used.
• Document history – Records of any modifications or access attempts.
• Certificate of completion – A legally recognised proof of the signature process.

 

Ensure the document is tamper-proof

A document must remain unchanged after signing to be legally valid. Use:

• Encryption – Ensures the signature cannot be copied or altered.
• Secure cloud storage – Prevents unauthorised access or loss.

 

Get Clear Consent to Sign Electronically

To prevent disputes, ensure both parties explicitly agree to use electronic signatures. This can be done by:

• Adding a statement of consent before signing (e.g., “I agree to sign this document electronically”).
• Including an opt-in checkbox before finalising the signature.
• Storing a copy of the agreement to e-sign in case of legal challenges.

 

Use a trusted eSignature provider

To avoid compliance risks, use an e-signature platform that meets legal and security standards, such as:

• UK & EU Compliance – eIDAS-certified providers.
• US Compliance – ESIGN Act & UETA-compliant platforms.
• Security Features – Multi-factor authentication, encryption, and audit logs.

 

Are There Any Restrictions on E-Signatures?

Whilst most businesses will accept electronically signed documents, some statutory bodies, such as the HM Revenue & Customs do place restrictions on electronic signatures. Due to social distancing restrictions during COVID-19, more and more Government bodies are now accepting electronic signatures. This is especially true for the HM Land Registry which has recently started to accept digital signatures on transfers of ownership of property, leases, mortgages and other property dealings.

The HM Revenue and Customs also now accepts electronic signatures on the following:

• P87 claims for employment expenses;
• marriage allowance claims; and
• 64-8s to authorise an agent.

There can also be complications around witnessing electronic signatures which make them unsuitable in certain circumstances. If in doubt, it’s best to ask the recipient whether they will accept an electronically signed document.

 

Other industry-specific regulations for electronic signatures

As well as the government and public sector, electronic signatures are legally valid in most industries. However, certain sectors have specific regulations governing their use. Depending on the industry, extra security measures, authentication steps, or even wet signatures may still be required.

 

Finance and banking (FCA compliance)

The finance and banking sector in the UK is governed by the Financial Conduct Authority (FCA). Electronic signatures can be used in this sector, but additional security and verification is often required, meaning qualified e-signatures (QES) are most commonly used.

Financial institutions must ensure strong customer authentication, in accordance with KYC (know your customer) regulations. eSignatures must provide an audit trail showing signer identity, intent, and document integrity. Many UK banks now allow electronic signing for loan agreements but require additional security for high-value transactions.

 

Healthcare

Electronic signatures can be used in healthcare, but security and privacy rules apply. NHS Digital guidelines allow e-signatures for patient consent forms, medical records, and prescriptions if they meet data security standards. Many NHS hospitals now allow electronic patient consent forms for procedures, reducing paperwork while maintaining compliance. Also, for companies working in the healthcare sector in the US, HIPAA mandates that electronic signatures on patient records and prescriptions must be encrypted and secure.

 

Legal and contracts

Electronic signatures are legally valid for most contracts, including employment agreements, NDAs, and sales contracts. Certain legal documents still require wet signatures, such as wills, statutory declarations, and affidavits. The Law Society of England and Wales confirms that courts will uphold secure electronic signatures with a verifiable audit trail.

 

In most industries, electronic signatures are legally valid, but certain sectors (finance, healthcare, real estate) require extra security, authentication, or wet signatures for specific documents. Always check industry-specific rules to avoid compliance risks. When in doubt, consult a legal expert or use a compliant e-signature provider.

 

What Types of Documents can be Signed Electronically?

The below types of document transactions are some of the most common examples of when an electronic signature is acceptable.

• Employment contracts
• Commercial contracts
• Non-disclosure agreements (NDAs)
• Corporate resolutions
• Software and content licensing
• Consumer transactions
• Procurement

 

Are You Looking for an Electronic Signature?

If you’re looking to implement an electronic signature across your business, why not consider E-Sign as your dedicated provider? Try our 14-day free trial today and discover the time- and money-saving power of E-Sign for yourself.

 

Why Choose E-Sign?

 

Improve Efficiency

Switching between digital and paper documents is unnecessary and time-consuming, adding extra steps into your workflow such as printing, scanning, and posting. By adopting an electronic signature, you can easily create, sign, and send out digital documents in just a few clicks, allowing you to improve operational efficiency and save time on managing documents and eSignature collection.

 

Save Money on Paper

The cost of collecting signatures and processing paper documents can all add up, especially if you rely on documents and signatures to get business done. By using digital documents and electronic signatures, you can eliminate spending on paper, envelopes, stationery, and postage, as well as the money spent on printer ink, toner, and the maintenance costs of this equipment.

 

Embrace Hybrid and Home Working

Not all your employees will have a printer or scanner at home; using traditional signatures may therefore not be viable if your employees need to work away from the office. If your business is looking to offer hybrid or home working options, adopting a digital signature provides the software your employees need to sign and generate digital documents at home, allowing them to continue working effectively from any location.

 

Boost Document Security

Using a traditional signature can mean that you’re sending out sensitive contracts or documents in the post or arranging time-consuming in-person meetings to collect your client’s signature. Using an advanced or qualified eSignature ensures you can collect signatures whilst managing the risk of fraud. Most providers will also offer expert cybersecurity, as well as extra protective measures, to ensure your documents don’t fall into the wrong hands.

 

Enhance Customer Experience

Using electronic signatures and digital documents not only brings benefits to your business but also to your clients. Paper-based processes can be time-consuming for your signers; if it’s not an editable document they’ll have to print, sign and either scan or post the document. Keeping everything digital ultimately makes life easier for your clients, enabling them to view, eSign and return your documents in just a few clicks.

 

Security Measures for Legally Binding Electronic Signatures

By using a secure eSignature software like eSign, you can have full peace of mind that your signatures are legally valid and binding. This is due to the extensive security measures we have in place to protect signer data. These measures include:

 

Encryption

The eSign platform is secured via the highest standard of SSL encryption, which works to safeguard and prevent unauthorised access and amendments to the signature or document.

 

Authentication

Strong user authentication methods such as multi-factor authentication and password protection on documents ensure that only the intended recipients can access and sign them.

 

Audit trails

A secure audit trail tracks all actions linked to the signing of a document and the details surrounding it, such as when a document has been viewed, edited, and signed, as well as the date, time, location, and IP address of the signature. This makes it easier to monitor any unauthorised access and prevent tampering, providing assurance that the signed document is secure and legally binding. 

 

Digital certificates

Digital certificates are electronic “credentials” that help to verify a person’s identity online. Every signature applied through eSign comes with a digital certificate to confirm that the right person has signed the document and they are who they say.

 

How to Create an Electronic Signature

You can easily generate a secure and legally binding electronic signature with E-Sign. Once you have created an account, simply log in and click on the ‘My Signature’ tab in the lefthand column of your dashboard. From there you will be presented with three different options for creating your online signature. 

These options are typing your signature into the box shown, drawing it using a mouse or your finger using a touchscreen device, or uploading it in the box shown (your signature can be uploaded as a JPEG or PNG file). Once you have finalised your signature, it is transformed into a ready-made e-signature that is just as distinctive and unique to your identity as its handwritten counterpart. The signature can then be affixed to any important documents going forward, in a highly secure and legally recognised way.

 

Frequently Asked Questions

Are electronic signatures legally the same as physical signatures?

Qualified electronic signatures (QES) are currently the only type of e-signature that hold the same legal weight as a handwritten signature. However, both qualified and advanced e-signatures are fully legally binding and valid as they follow additional eIDAS security and identity verification measures compared to simple e-signatures which can involve a basic action such as ticking an ‘I agree’ checkbox.

 

How do I prove my electronic signature is valid?

To prove the validity of an electronic signature, you need a strong audit trail that includes:

• Timestamps – When the signature was created.
• IP address & device details – To verify the signer’s identity.
• Email or SMS verification – To show explicit signer consent.
• Document integrity check – To confirm no changes were made after signing.

Using a trusted e-signature provider like E-Sign ensures your signature is legally valid and verifiable in court.

 

Can I use electronic signatures for wills, legal contracts, or government documents?

In some instances yes, but it depends on the document type.

Legal contracts – Most contracts (e.g., NDAs, sales agreements, employment contracts) allow electronic signatures.
Government documents – Many government services (e.g., tax filings, business registrations) accept e-signatures.

Wills & estate documents – Often require a handwritten signature and physical witnesses.
Certain court documents & real estate transactions – May require a wet signature or additional verification (e.g., a witness or Qualified Electronic Signature).

Always check industry-specific regulations before using an electronic signature for critical legal documents.

 

What’s the difference between a typed name and a certified e-signature?

A typed name (e.g., signing by typing your name in a document) is the most basic form of an electronic signature, but it lacks strong authentication.

A certified e-signature (such as an Advanced Electronic Signature (AES) or Qualified Electronic Signature (QES)) includes:

• Identity verification (via email or SMS).
• Encryption & tamper-proofing (to prevent modifications).
• An audit trail (to provide legal proof).

For legally sensitive documents, a certified e-signature is far more secure and enforceable than just a typed name.

 

Are free electronic signature tools legally valid?

Yes, free e-signature tools can be legally valid, but not all meet legal and security standards. Many free tools lack:

• Identity verification – No way to confirm who actually signed.
• Audit trails – No proof of when and where the signature was created.
• Encryption & tamper-proofing – Making documents vulnerable to forgery.

For legally binding agreements, use a trusted e-signature provider that offers compliance with eIDAS, GDPR, and other UK industry regulations.

 

E-Sign is a leading provider of digital transaction management solutions, supplying professional services including Electronic Signatures, Web Forms, ID Checker, Verification Tools, Personalised Emails, API and Payment Processing to businesses of all sizes across the UK.

To find out more about our E-Sign solutions and how they could transform your business, get in touch with us today.