Signature Authority Definition and Examples

Understanding Signature Authority for e-Signing

When it comes to e-Signing, understanding Signature Authority is crucial for ensuring that your digital transactions are not only valid but also legally binding. But what exactly is Signature Authority?

Signature Authority refers to the designated power granted to an individual to sign documents on behalf of an organization, thereby binding the organization to the terms and conditions contained within those documents. This granted power is typically governed by the organization’s internal policies and often formalized through designated roles, job titles, or explicit written authorization.

Key Points:

• Designated Power: Only specific individuals are granted the authority to sign documents on behalf of an organization.
• Formalization: This power is often formalized through company policies or explicit written permissions.
• Binding: The signature of the authorized individual binds the organization to the contractual terms and obligations within the document.

Why Signature Authority Matters in e-Signing:

1. Legal Validity: Without proper Signature Authority, an e-signed document might not hold up legally, rendering it void and unenforceable.
2. Accountability: Ensuring that only authorized individuals can sign documents helps maintain accountability and reduces the risk of fraudulent activities.
3. Efficiency: Knowing exactly who has the authority to sign can streamline business processes and reduce administrative delays.

Examples of Signature Authority Usage:

• Contracts: When finalizing a contract with a new client, an executive or manager with Signature Authority would e-sign the document to make it official.
• Approvals: For internal approvals, such as budget allocations or HR policies, only designated leaders with Signature Authority can e-sign to execute these decisions.
• Legal Documents: Important legal documents, including lease agreements, mergers, and acquisitions, require e-signed approval by an individual with the correct Signature Authority to be valid.

Understanding Signature Authority is essential for navigating the digital signing landscape. With GoodSign, you don’t have to worry about extra costs for team members, and with a simple $1.50 per envelope per send, it's easy and affordable to ensure that your documents are signed by the right people, with the authority to make it count.