Electronic signatures have become part of many transactions. Today professionals across business industries are using electronic signatures to execute transactions, documents, and content. Moreover, they have become a prevalent and useful digital tool for freelancers to exercise their rights of self-determination and freedom to contract.
While not yet a clear legal standard, the use of electronic signing has been increasing in frequency due to its efficacy and practicality for business settings. In an increasingly digitized society, where most transactions take place online or at least utilize some form of digital infrastructure, the need for these signatures is necessary and useful.
Now that many freelancers are turning to electronic signatures to secure contracts from clients, their advantages are becoming more and more apparent.
If you are a freelancer and thinking about integrating electronic signatures into your workflow, here are the advantages you will gain:
Convenience
Electronic signatures allow for contracts to be completed on your schedule, from anywhere in the world via laptop or mobile device. It is faster and more convenient than transporting documents across town or waiting days or weeks for a response from a client before moving forward. In addition, electronic signature applications let you send documents to clients for review or approval at any time of the day, even if they are in a different time zone.
Remote Working
You are not restricted by geography when it comes to signing contracts electronically. Electronic signatures mean you do not have to travel for meetings, so they are perfect for freelancers who cannot afford to take time away from their work. Electronic signatures allow for both you and your client to work from relative locations without worrying about document delivery across town or between states or countries. If you and your client are in different countries, e-signature technology could save both of you a lot of time and money when it comes to signing documents.
Security
Many freelancers use e-signatures as part of their digital security measures to protect both their clients and themselves from fraud and identity theft. Electronic signatures are both legally binding and highly secure because they contain encrypted security features that can be verified by law enforcement if needed.
Privacy
A digitally signed document can only be read by its intended recipient. It is not possible to alter the content of an e-signed contract without detection because it contains a tracking system that locks down all alterations to the original file. This guarantees that both parties to a transaction can read and know what has been agreed upon in the event of an issue later on. Moreover, the majority of contracts that use e-signatures are valid for the length of time they were created for, and not a set number of years as paper contracts often contain.
Time-Saving
Since electronic signatures allow for contracts to be completed at your convenience, you can quickly and easily send a client an agreement, wait for their response, and sign off on it after they’ve returned it with any minor changes made if desired. This is all done virtually, freeing up your time to complete other tasks.
Speed
Electronic signatures dramatically speed up the process of creating and executing legal documents to allow freelancers to work more efficiently and transact with more clients. Most importantly, electronic signatures save money related to printing, postage, and long-distance phone calls.
No Paperwork
Having tons of paperwork lying around is no longer necessary when using technology. Since electronic signatures require no physical documents or signatures, all that is required by both parties are either an e-mail or fax.
Easy Collaboration
Collaborating on a document is now as easy as sending an email or uploading it online using electronic signatures, stored in the cloud. It allows multiple parties to access documents from anywhere at any time without having to print them out, sign them, and scan them back into a computer which can save time and resources. This also eliminates any potential for miscommunication that may occur with contract delivery.
Legal Compliance & Security
E-signatures are legally binding and secure, unlike their paper counterparts. When a contract is signed electronically, the document contains an electronic verification that ensures that all parties have agreed to sign it. This means that if someone tries to change or alter a digital signature in a way that would make them a party to the contract, the electronic signature system will render the document invalid.
Notifications for Accountabilty
When a contract is sent electronically, e-signatures are an easy way to get automatic email alerts that inform you when your clients have opened and read your contracts to show proof of delivery. This can also include alerts for timeliness so if someone doesn’t return a contract within the given time frame, an automatic email is sent to inform you of this as well.
What are electronic signatures?
Electronic signatures, according to the Electronic Signatures in Global and National Commerce Act (E-SIGN Act), are defined as “an electronic sound, symbol, or process attached to or logically associated with a contract or other record and executed or adopted by a person with the intent to sign the record.”
The E-SIGN Act also states that an electronic signature is legally binding if it meets certain requirements such as the following:
- The signature must be uniquely linked to the person electronically signing it.
- The recipient of the electronic signature should be capable of determining whether the person is the one who signed it — referred to as non-repudiation.
- The technology used should not modify or alter the information in a way that could make it difficult for either side to authenticate or read it.
- It has to provide a method allowing the parties and government agencies enough time and information to access and review what was signed — referred to as an audit trail.
Electronic signatures are beneficial to freelancers due to their legality and the convenience it brings into transactions. In general, the ease, speed, and security provided with e-signatures make them a useful tool for both businesses and individuals.