Legal Binding Definition and Examples

Understanding Legal Binding for e-Signing

When it comes to e-signing, the term "legal binding" is paramount. A legally binding electronic signature is one that is recognized by law and holds the same enforceability as a handwritten signature. This means that documents signed electronically can stand up in court and hold all parties accountable to the terms stipulated within.

What Makes an E-Signature Legally Binding?

Several key factors contribute to the legal binding nature of an electronic signature:

1. Consent: Both parties must consent to conduct the transaction electronically.
2. Intent to Sign: The signer's intent to authenticate the document must be clear.
3. Association with the Record: The e-signature must be logically associated with the document.
4. Record Retention: The document must be retained in a form capable of being accurately reproduced for later reference.

Examples of Legally Binding E-Signatures

1. Contracts: Electronic signatures on sales agreements, service contracts, and employment contracts are legally binding.
2. Financial Documents: Loan agreements, mortgage documentation, and investment forms can all be e-signed with legal backing.
3. Government Forms: Tax returns and other government filings can be completed with legally binding e-signatures.

Why GoodSign’s Pay-Per-Use Model Matters

At GoodSign, our e-signatures comply with all legal standards required to make your documents legally binding. Plus, our pay-per-use model at just $1.50 per envelope ensures you get all the robust features you need without the burden of expensive subscriptions. This means you can have legally binding agreements without any additional costs for team members or hidden fees—just pay for what you use.

Stay Legally Secure with GoodSign

GoodSign offers all the features and integrations you need to ensure your electronic signatures are legally binding. Avoid expensive commitments and get the legal assurances you need—one envelope at a time. Use GoodSign to keep your business moving forward with confidence.