Avoiding Common eSignature Legal Mistakes: A Proactive Approach to Electronic Signature Laws Compliance9 min read

electronic signature laws

Stressed office worker buried in paperwork due to non-compliance with electronic signature laws, emphasizing the importance of avoiding common mistakes by adopting Certinal eSign.

Imagine this: You’ve just finalized a crucial contract with a new client – electronically, of course. It seemed like a breeze, saving time and resources. But what if down the line legal trouble arises and the validity of your eSignature is challenged due to electronic signature laws (eSignature laws) not being followed?

The reality is non-compliant eSignatures can lead to costly legal battles, compromised data security, and even damaged trust with clients and partners.

Moreover, 70% of corporate risk and compliance professionals have noticed a shift from check-the-box compliance to a more strategic approach over the past two to three years (2023 Thomson Reuters Risk & Compliance Survey Report). This shift underscores the increasing relevance and importance of a proactive approach to electronic signature laws compliance.

The good news? By adopting a proactive approach to eSignature compliance, businesses across various departments (HR, Procurement, Legal, Finance, and IT) can ensure the enforceability and validity of their electronic agreements.
70% of corporate risk and compliance professionals now favor a strategic approach over 'check-the-box' compliance, highlighting the importance of avoiding common eSignature mistakes with Certinal eSign

This blog post will equip you with the knowledge to avoid common legal pitfalls associated with eSignatures. We’ll explore actionable steps for each department and guide you towards choosing the right eSignature solution for your specific needs.

Key Takeaways

  • Understanding Local Regulations: Don’t assume a one-size-fits-all approach for eSignature compliance. Electronic signature laws (eSignature laws) vary by location and may have additional requirements beyond federal regulations.
  • Common Compliance Errors: Be aware of pitfalls like not understanding local regulations, inadequate signer authentication, and maintaining insufficient audit trails.
  • Proactive Approach Benefits: Prioritizing compliance offers numerous benefits, including avoiding legal disputes, protecting sensitive data, building trust with partners, and streamlining workflows.
  • Actionable Steps by Department: We provided specific actions for HR, Procurement, Legal, Finance, and IT departments to ensure their practices are complaint with electronic signature laws
  • Choosing the Right eSignature Solution: Look for features like compliance with electronic signature laws (ESIGN, UETA), robust authentication methods, secure document storage with tamper-proof audit trails, user-friendly interface, and integrations with existing business applications.

Part 1: Common Compliance Errors

Not Understanding Local Regulations (Electronic Signature Laws)

The ease of eSignatures can lead to complacency when it comes to compliance. Many businesses assume a single eSignature solution will work universally. However, electronic signature laws (eSignature laws) vary by location and can have additional requirements beyond federal regulations.

Here’s a common scenario: A Finance department finalizes a loan agreement with a client using a widely used eSignature platform. They may not be aware that some states require specific evidence for signer intent alongside the signature itself. For example, some states might require an additional click-through acknowledging the implications of electronic signature laws. Without this additional step compliant with both federal and state laws, the loan agreement could be challenged in court.

This example highlights the importance of understanding the specific electronic signature laws that apply to your location and the type of agreements your department handles. Don’t get caught off guard by relying solely on brand recognition of an eSignature solution – ensure it offers features that guarantee compliance with relevant regulations.

We’ll delve into other common compliance errors throughout Part 1, providing actionable tips to navigate the world of eSignatures securely and compliantly.

Lack of Signer Authentication

Ensuring the right person is signing your electronic documents is crucial for their validity and your organization’s security. This concept is known as signer authentication.

Many basic eSignature solutions might rely solely on email verification for signing, which can be vulnerable. Imagine this scenario: A Procurement department uses an eSignature platform that only requires an email address for signing a high-value contract. A malicious actor could potentially gain access to an employee’s email and impersonate them to sign the contract fraudulently.

Robust signer authentication methods are essential to prevent such scenarios. Look for eSignature solutions that offer features like two-factor authentication (2FA) or knowledge-based authentication (KBA) to verify a signer’s identity before allowing them to sign.

By implementing strong authentication methods, you can ensure the integrity of your eSignatures and protect your organization from fraudulent activities.

Inadequate Audit Trails

In the legal world, a record is only as good as the evidence it provides. This principle applies equally to eSignatures. A comprehensive audit trail serves as a detailed record of the entire eSigning process, documenting who signed the document, when they signed it, and from what IP address.

Imagine a scenario: A Legal department relies on a basic eSignature solution that doesn’t provide a robust audit trail. During a legal dispute, they might struggle to prove the validity of an eSigned contract in court without a detailed record of the signing process.

Certinal eSign, for instance, is a leading eSignature solution that offers tamper-proof audit trails, providing a clear chain of custody for your electronic agreements. These detailed audit trails can be invaluable for demonstrating compliance and defending the enforceability of your eSignatures in court.

By choosing an eSignature solution with comprehensive audit trails, you can ensure that your electronic agreements are legally sound and provide a clear record for future reference.

Part 2: Taking a Proactive Approach to eSignature Compliance

Benefits of a Proactive Approach to Compliance

  • Avoids legal disputes and costly litigation: By ensuring your eSignatures comply with electronic signature laws, you significantly reduce the risk of legal challenges that could lead to expensive litigation and potential financial losses.
  • Protects sensitive data and ensures document security: Robust eSignature solutions offer advanced security features like encryption and access controls to safeguard your sensitive data and prevent unauthorized access to your electronic documents.
  • Builds trust with clients and partners in the eSigning process: When clients and partners know your organization takes electronic signature laws seriously, it fosters trust and confidence in the validity and enforceability of your electronic agreements.
  • Streamlines workflows and improves efficiency: Compliant eSignature solutions can automate workflows and eliminate the need for manual processes associated with paper-based agreements, leading to increased efficiency and productivity across your organization.

A proactive eSignature compliance approach offers many benefits that go beyond avoiding legal trouble. By prioritizing compliance, you can safeguard your organization’s data, strengthen relationships with clients and partners, and ultimately achieve a more streamlined and efficient business environment. In fact, 80% of corporate risk and compliance professionals agreed that their organization views risk and compliance as valuable business advisory functions, and 74% agreed that risk and compliance requirements enable, support, and enhance business activity (2023 Thomson Reuters Risk & Compliance Survey Report).

Actionable Steps for Each Department:


  • Ensure your eSignature solution complies with relevant data privacy regulations such as GDPR and CCPA when handling employee data in electronic agreements. According to the Coalfire Compliance Report 2023, 84% of security and IT professionals list data protection frameworks such as GDPR and CCPA as a mandatory requirement for their industries.
  • Develop clear eSignature policies outlining employee responsibilities and best practices for using the eSigning platform.


  • Carefully review eSignature vendor contracts to understand their security measures and compliance certifications.
  • Implement a standardized eSignature process for procurement contracts to ensure consistency and compliance.


  • Develop comprehensive eSignature policies that outline procedures for using eSignatures across various legal documents.
  • Partner with IT to ensure your chosen eSignature solution integrates seamlessly with existing legal document management systems.


  • Implement strong authentication methods such as two-factor authentication to verify the identity of signers on financial documents.
  • Maintain a clear audit trail for all financial eSignatures to ensure a documented record for future reference and potential audits.


  • Partner with legal and security teams to evaluate and choose a compliant eSignature solution that meets your organization’s specific needs. In 2023, almost 70% of service organizations said they need to demonstrate compliance or conformity to at least six frameworks spanning information security and data privacy taxonomies (Coalfire Compliance Report 2023).
  • Provide ongoing training and support to all departments on using the eSignature platform securely and effectively. 59% of security and IT leaders indicate their organization has multiple systems that must adhere to compliance requirements (Coalfire Compliance Report 2023).

By implementing these practical steps within each department, you can establish a solid foundation for a secure and compliant eSignature environment across your entire organization.

Choosing the Right eSignature Solution

Selecting the right eSignature solution is crucial for ensuring compliance, security, and a smooth workflow for your organization.

Here are some key features to consider:

  • Compliance with eSignature Laws (ESIGN, UETA): Look for a solution that guarantees compliance with both the federal ESIGN Act and the Uniform Electronic Transactions Act (UETA), as well as any relevant state regulations.
  • Robust Authentication Methods: Strong signer authentication is essential to prevent unauthorized access and ensure the right person is signing your documents. Consider solutions offering features like two-factor authentication (2FA) or knowledge-based authentication (KBA).
  • Secure Document Storage and Audit Trails: Tamper-proof audit trails provide a detailed record of the eSigning process and are critical for demonstrating compliance in case of disputes. Look for solutions with secure document storage and comprehensive audit trails.
  • User-friendly Interface: A user-friendly interface is essential for both senders and signers to ensure a smooth and efficient eSigning experience.
  • Integrations with Existing Business Applications: Seamless integration with your existing business applications (like CRMs or document management systems) can streamline workflows and eliminate manual data entry.

Certinal eSign, for example, is a leading eSignature solution that ticks all these boxes. Recognized as a strong performer in the Gartner Voice of the Customer report and a “leader” in the IDC MarketScape: Worldwide Electronic Signature 2023, Certinal eSign offers a robust and user-friendly platform that prioritizes compliance, security, and ease of use.

By carefully evaluating these factors and considering solutions like Certinal eSign, you can choose an eSignature solution that empowers your organization to navigate the world of eSignatures with confidence and efficiency.

Conclusion: Ensuring Secure and Compliant eSignatures for Your Business

eSignatures offer a convenient and efficient way to streamline workflows and finalize agreements. However, navigating the legal landscape surrounding eSignatures is crucial to ensure their validity and enforceability. Non-compliance with electronic signature laws can lead to expensive legal battles, compromised data security, and reputational damage.

This blog post has equipped you with the knowledge to navigate the world of eSignatures with confidence. By following these guidelines and prioritizing eSignature compliance, you can ensure your organization leverages the power of eSignatures securely and efficiently. Remember to research eSignature solutions that meet your specific departmental needs and guarantee compliance with electronic signature laws. This commitment to compliance will safeguard your organization, build trust with stakeholders, and ultimately contribute to a more secure and efficient way of conducting business.

Don’t leave compliance to chance. Discover how Certinal eSign can help your organization navigate eSignature regulations with confidence. Book a demo today and see our robust user-friendly solution in action!


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author avatar
Senior Executive - Marketing
Lokjith is a marketing content writer, and he writes about eSignature technology to raise awareness and help enterprises make informed decisions. Before discovering the SaaS industry, he organized Offline Marketing campaigns campaigns. He has a master’s degree from the Institute of Management Technology, specializing in Marketing.
Certinal - IDC

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