Understanding Electronic Signatures for Legal Documents

An electronic signature is a digital indication of a person’s intent to sign a document, such as typing a name, clicking “I Accept,” or using an e-signature tool. It differs from a digital signature, which uses encryption to secure a document and verify its authenticity. 

Electronic signatures help by simplifying workflows and ensuring compliance in today’s digital-first world by enabling law firms to transition away from traditional wet signatures. In this article, we’ll examine the legality of electronic signatures for legal documents, the benefits and challenges of utilizing them, and how your firm can implement e-signatures into workflows.

Understanding the Legality of Electronic Signatures

In the United States, electronic signatures are legally valid under two primary laws:

1. The Electronic Signatures in Global and National Commerce (ESIGN) Act:
   This federal law, passed in 2000, grants electronic signatures the same legal weight as handwritten signatures nationwide, as long as specific conditions—like mutual consent and record retention—are met.
2. The Uniform Electronic Transactions Act (UETA):
   Adopted by 49 states, UETA is an electronic signature law that outlines how e-signatures can be used in contracts, business transactions, and other legal matters—ensuring their enforceability at the state level.

Together, these laws confirm that electronic signatures are as legally binding as wet signatures when the proper processes are followed.

Still, for electronic signatures to carry the same legal weight as handwritten ones, the following conditions typically apply:

• All parties agree to use an electronic means for the transaction.
• The signature can be attributed to the signer through verifiable means like authentication or audit trails.
• The signed document is securely stored and accessible for future reference.

Reputable e-signature platforms provide features like audit trails, time stamps, and authentication protocols that establish a clear record of the signing process. These tools ensure the e-signature legal requirements are met and provide robust evidence in the event of a dispute.

Challenges with Using Wet Signatures for Legal Documents

While wet signatures remain a standard for certain transactions, they often present significant challenges, including:

• Inconvenience: Wet signatures require clients to print, scan, mail, or appear in person to complete the signing process. This can be especially burdensome for remote clients or those with limited access to the necessary tools.
• Security concerns: Paper documents are susceptible to forgery, loss, and unauthorized access. Without digital safeguards, verifying the authenticity of a wet signature can be difficult.
• Time-consuming: The manual process of printing, signing, scanning, and sending documents creates delays, particularly when multiple parties are involved. This inefficiency can slow down legal operations and disrupt workflows.

Benefits of Electronic Signatures Software for Law Firms

Legal e-signature software can help speed up the client intake process—ensuring compliance with legal standards and enhancing operational efficiency. It also helps with document execution, agreements, and other legally binding documents. Below are the most prominent benefits of e-signatures.

Time Savings

Electronic signatures significantly enhance efficiency in law firms by eliminating the delays associated with traditional wet signatures. Documents can be signed and returned within minutes, no matter the client's location—streamlining workflows and accelerating case progress. This is particularly useful in time-sensitive matters, allowing attorneys to meet deadlines with ease.

Reduced Costs

The transition to electronic signatures eliminates expenses tied to printing, scanning, mailing, and physical document storage. For law firms, this means reduced overhead and increased profitability. According to industry reports, businesses can save up to 85% on document-handling costs by adopting legal electronic signature technology.

Enhanced Security

Electronic signatures offer advanced security measures that make them more secure than traditional signatures. Features such as tamper-evident audit trails, encryption, and signer verification ensure the authenticity and integrity of signed documents. These capabilities protect against fraud and provide a reliable record of the signing process.

Streamlined Document Management

Legal e-signature software eliminates the hassle of managing physical paperwork by providing a centralized digital repository for all signed documents. This simplifies document organization, storage, and retrieval, reducing the time spent on administrative tasks. With built-in tracking and audit trails, law firms can ensure that every document is accounted for, reducing the risk of misplaced or lost agreements. Additionally, cloud-based storage allows authorized users to access signed documents securely from anywhere, improving efficiency and collaboration.

Improved Compliance

E-signature solutions help law firms meet strict regulatory and security standards by ensuring electronic signatures align with key legal frameworks such as the ESIGN Act and UETA. These platforms often come with encryption, multi-factor authentication, and audit logs, helping to safeguard client data and prevent unauthorized access. Automated compliance features also reduce the risk of human error, ensuring every signed document meets industry standards without the need for manual oversight.

Enhanced Client Relations

Providing a seamless and modern signing experience improves client relationships and trust. With e-signatures, clients can sign legal documents remotely from any device, eliminating the need for in-person visits and lengthy mailing processes. This convenience speeds up transaction times, reduces delays, and demonstrates a law firm’s commitment to adopting user-friendly, time-saving technology. By streamlining the signing process, firms improve responsiveness, making legal services more accessible and efficient for their clients.

Electronic Signatures vs. Wet Signatures

When choosing between electronic and wet signatures, factors like usability, security, compliance, cost, and environmental impact play a crucial role. Here’s how they compare:

Usability

• Electronic Signatures: Easily accessible from any device with an internet connection, allowing users to sign documents remotely.
• Wet Signatures: Require physical presence, printing, and scanning, making the process time-consuming and less convenient.

Security

• Electronic Signatures: Incorporate encryption, tamper-evident audit trails, and signer verification to enhance security.
• Wet Signatures: Lack built-in security features and are more susceptible to forgery or tampering.

Compliance

• Electronic Signatures: Legally recognized in most jurisdictions and compliant with laws like the ESIGN Act and UETA.
• Wet Signatures: Universally accepted but may be required in specific legal situations, such as wills, trusts, or notarized documents.

Cost

• Electronic Signatures: Reduce expenses by eliminating printing, mailing, and physical storage costs.
• Wet Signatures: Incur ongoing costs for paper, ink, courier services, and storage space.

Environmental Impact

• Electronic Signatures: A sustainable option that reduces paper waste and lowers the carbon footprint.
• Wet Signatures: Contribute to environmental degradation due to reliance on paper and physical resources.

By leveraging electronic signatures, businesses and individuals can streamline document processes, improve security, and reduce costs—all while making a positive environmental impact.

How to Integrate Electronic Signatures in Legal Workflows

Integrating electronic signatures into legal workflows offers law firms a streamlined, secure, and efficient process for handling documents. Below is a process for how your firm can ensure a successful integration.

Select a Compliant Platform

First, select a solution that complies with the Electronic Signatures in Global and National Commerce Act (ESIGN) and the Uniform Electronic Transactions Act (UETA)—ensuring that electronic signatures are legally enforceable.

Key features to look for in a platform include:

• Tamper-evident document technology
• Strong authentication methods (e.g., multi-factor authentication)
• Seamless integration with legal practice management tools

By selecting a compliant platform, law firms can confidently incorporate electronic signatures without compromising legal validity or security.

Verify Signatories

Verifying the identity of signatories is essential in ensuring the integrity of electronically signed documents. Unlike wet signatures, electronic signatures offer robust verification methods that enhance security.

Common methods include:

• Email verification: A secure link sent to the signer’s verified email address ensures authenticity
• Multi-factor authentication (MFA): A secondary authentication step, such as an OTP (one-time password) or phone verification, which adds another layer of protection
• Knowledge-based authentication (KBA): Requires signers to answer personalized security questions based on publicly available information

These measures protect against unauthorized signatures and enhance trust between parties—making them particularly valuable in high-stakes legal agreements.

Implement Secure Storage of Signed Documents

Once documents are signed electronically, they must be stored securely to preserve their validity and accessibility. Secure storage ensures compliance with legal standards and protects sensitive information.

Best practices for document storage include:

• Cloud-based solutions: These systems leverage encrypted cloud storage to ensure data protection and scalability
• Access controls: This helps your firm implement role-based permissions to limit document access to authorized personnel
• Redundant backups: Regular backups prevent loss that can occur from technical failures or data breaches

Storing documents securely safeguards their integrity and ensures they are readily available for audits or legal disputes.

Ensure Audit Trails

Audit trails are a vital component—providing detailed records of the signing process. These tamper-proof logs enhance transparency and act as critical evidence in case of disputes.

An effective audit trail should include:

• Dates and timestamps for each action (e.g., viewing, signing)
• IP addresses and device information of signatories
• A chronological record of all interactions with the document.

Platforms that automatically generate comprehensive audit trails save time while ensuring that documents are legally enforceable and fully compliant.

Simplify Case Management with CASEpeer’s E-Signature Tools

CASEpeer’s e-signature feature offers personal injury law firms an efficient and secure solution. By eliminating the need for third-party tools, CASEpeer streamlines document signing workflows—allowing firms to request e-signatures via email or text, automate reminders, and track completion status in real-time. This functionality reduces administrative burdens and accelerates case timelines.

The platform also enhances security by keeping signed documents within its encrypted environment—ensuring compliance with legal standards like the ESIGN Act and UETA. With tamper-evident audit trails and robust authentication methods, CASEpeer protects sensitive client information.

Book a CASEpeer demo today and discover how e-signatures can benefit your personal injury firm.