Given that digital transformation is no longer a trend but rather an ongoing process, electronic signatures or e-signatures have become an indispensable feature of modern business and governance. Today, e-signatures are routinely used in the signing of employment contracts, loan applications, accepting tenders and even multi-million dollar business agreements. E-signatures or electronic signatures allow legally binding transactions to be done “on paper” without the need of a physical document.
As we step into 2025, the concern is no longer “What are e-signatures?” but, “Are e-signatures valid and enforceable in every situation?” This is an important concern for e-business in general, for entrepreneurs and professionals, for legal experts relying on modern technologies or for an average consumer using e-signatures who value their convenience and speed.
The short answer is yes but the long answer involves how laws differ from one region to another, what types of e-signatures there are, which digital platforms are compliant and what limitations still exist. In an age of advancing digitization of various global economies, knowing the legal foundation is not merely beneficial but rather crucial.
This guide is for you whether you're an HR manager running the on boarding process for a remote employee, a founder of a startup sealing international deals, or just someone interested in the legal procedures of how digital signatures operate. In this blog, we will discuss the legal aspects, practical applications, international laws, and what best practices for e-signatures in 2025 are to provide you with relevant information before your next digital document signing.
We might as well start with the truth about the legality of e-signatures they are not the thing of the future they are here, and it's about time we accepted that they are the present.
What is an E-signature?
E-signatures of documents refer to any electronic indication of someone's consent to a certain document’s contents. For example:
- Entering your name in the signature field
- Selecting “I agree” in a clicked button in a terms and conditions clause
- Signing a screen with a stylus or finger
- Use of certified e-signature platforms like DocuSign, Adobe Sign, and HelloSign
E-signatures and digital signatures have different meanings the former does use encryption for additional security and verification, thus making them distinct from the latter. Still, depending on the jurisdiction and context, both can be legally binding.
According to my research, many countries have recognized e-signatures provided that certain criteria are met. Below are some criteria that come to mind:
Are E-signatures Legally Binding?
1. Global Acceptance
Due to various laws and regulations, almost every country has accepted e-signatures as valid:
United States: The ESIGN Act (2000) and UETA (Uniform Electronic Transactions Act) claim that e-signatures are treated as equivalent to handwritten signatures.
European Union: The eIDAS Regulation states that electronic signatures are permissible as evidence in legal proceedings and valid throughout the European Union.
India: The Information Technology Act, 2000 gives credence to digital and electronic signatures, particularly those certified by a certifying authority.
[An Indian entrepreneur digitally executing a contract with a vendor using eMudhra’s software. Since eMudhra is a licensed Certifying Authority, the signature is valid and can be used as evidence in court.]
United Kingdom: Under the Electronic Communications Act 2000 and common law, E-signatures are valid and admissible in Britain.
Other Countries: Canada, Australia, and many Asian countries have similar laws in regard to e-signatures used in commercial and civil contexts.
2. Primary Criteria for E-signature Validation
In general, no fewer than the following requirements have to be met for e-signatures to be accepted legally:
Signing intention: The signer has the intention to sign the document.
Agreement Required for Electronic Transactions: Each participant should agree adopting electronic records and signatures.
Affiliated to the signature: it must be associated clearly with the document to which it is affixed
Record keeping: The record must be preserved in an agreed storage location and must be available for retrieval in the future.
If these conditions are met, courts/law typically accepts e-signatures in the same manner as conventional signatures made with ink.
Real World Examples
1. Usage of Adobe and DocuSign
A lot of international businesses like Adobe and DocuSign have specialized secure e-signature services used by banks, insurance firms, and governmental agencies. For instance, Salesforce employs DocuSign for the handling of employee contracts and NDAs all over the world.
2. Digital Signature and Indian Courts
In the case of Trimex International FZE Ltd. Dubai V Vedanta Aluminium Ltd (2010), the Indian Supreme Court validated the contract based on negotiations conducted via email and accepted over digital communication. That illustrates India’s judiciary is accepting of digital consent.
3. Transactions in Real Estate
In the US, Dotloop and HelloSign are used for the buying and selling of real estate. The entire process can be conducted online, enabling buyers and sellers to draft agreements and sign them electronically.
4. Signatures and the COVID-19 Pandemic
E-signatures were widely adopted during the pandemic. Procurement contracts for vaccines and medical supplies were digitally signed by government authorities. Courts in both the UK and Canada accepted electronically signed affidavits during the lockdown period.
5. Employment Contracts
Most companies, specifically in the tech and startup sectors, on board new employees via electronically signed offer letters. HR software like Zoho People, BambooHR, and DocuSign are regularly used for signing these contracts.
6. Government Services
Electronically signed documents are also used by the government for services related to the public such as tax filing and public procurement.
Aadhaar Based e-KYC Authentication - This is authentication through an Aadhaar number using a One Time Password (OTP) or biometric authentication.
7. Banking and Financial Services
Digitally signed documents have a large application in banking and other financial institutions who utilize them for signing loan agreements, mutual funds, as well as for applications concerning credit cards.
Common use cases include winning usernames for further verification of added mortgages and loans, are also provided within the documents and approvals Applications for mutual funds and insurance.
8. E-Commerce and General Consumer Transactions
* The online signature allows finalising agreements to facilitate online purchase transactions which include
* Subscription-based services like Netflix, Amazon Prime
* Receipts and invoices provide signed electronically
When E-Signatures Do Not Suffice
Irrespective of the wide use, there are still cases where electronically signed documents would be considered non-valid regardless of consent such as:
* Wills and other documents are also referred as deeds
* Real property transactions within selected jurisdictions
* Power to translate the document
* Goods of Negotiable Instruments (e.g., Cheques, Promissory Notes, Bills of Exchange)
Make sure to review local regulations, policy documents, and check with a legal counsel for any high-value or sensitive agreements.
How is E-signature Compliance Managed in India?
Companies Act of 2013 – Corporate filings with the Ministry of Corporate Affairs (MCA) as well as corporate agreements require digital signatures.
RBI Guidelines – Digital signatures utilized in financial transactions by banks must have secure encryption.
Securities and Exchange Board of India (SEBI) – Filings related to the stock exchange and other compliances have to be digitally signed.
GST Act & Income Tax – Filing of return of Goods and Services Tax (GST) and taxation has to be done using e-signatures.
Are E-signatures Secure?
Current e-signature systems maintain high security through:
* Multi-factor identification
* Document access management by designated authorities
* Data coding
* Tracking the signer's Internet Protocol (IP) address
These measures ensure the integrity of the signer’s identity against document alteration claims, thus ensuring the reliability of e-signatures.
The Future of E-signatures: Trends & Innovations
Blockchain Technology and Digital signatures – Blockchain provides superior and unchangeable verification for e-signatures that enhances security compared to traditional methods.
AI based Digital Signatures – Fraud detection in online transactions can be implemented using machine learning technology which could provide added dependability to the signature.
Global Recognition of Indian Digital Signatures – The usability of Indian digital signatures is increasing on cross-border contracts.
Conclusion
Globally, e-signatures are accepted in most regions and sectors, as they fulfil present legal criteria. E-signing documents takes less time, is more secure, and this efficiency makes them invaluable in the modern world.
Still, in some jurisdictions or specific documents, the classic signature is still needed. It’s best to check with a lawyer to make sure your online agreements are compliant and enforceable.
Have you started using e-signatures in your business or legal agreements? Share your experiences in the comments below!
Reference/The
inspiration or idea for writing this blog originated from this source
- Trimex International Fze
Ltd.Dubai vs Vedanta Aluminium Limited
- E-Signatures in India: Legal Validity, Compliance & Use Cases
- Legal Validity of Electronic Contracts in India: A Guide for Startups and Freelancers
- Electronic Signature Clause: Definition and Examples
- The Complete Guide to Digital Signatures in 2025
