E-signatures are a staple of modern business, but unfortunately, they’re often used incorrectly. This can lead to legal problems down the road, so it’s important to be aware of the most common mistakes people make when using e-signatures. In this blog post, we’ll cover some of the most common esignature mistakes and explain how you can avoid them.
1. Not Collecting All The Necessary Signatures
This is perhaps the most common mistake people make when using e-signatures. They forget to collect all of the necessary signatures before sending out a document. As a result, they have to go back and forth with the other party (or parties) involved, which can be frustrating and time-consuming. To avoid this mistake, always double-check that you have all of the signatures you need before sending out a document.
2. Not Checking The Identity Of The Person Signing
Another common mistake is not checking the identity of the person signing a document. This can be especially problematic if you’re dealing with sensitive information. To avoid this mistake, always verify the identity of the person signing a document before sending it off. This can be done through a number of methods, such as video conferencing or by sending a confirmation email to an address that only the signer should have access to.
3. Not Keeping Track Of Who Has Signed
Once you’ve collected all of the necessary signatures, it’s important to keep track of who has signed so you can easily reference it later if needed. This is often done through an electronic database or spreadsheet. To avoid this mistake, always keep track of who has signed and when they signed so you can easily reference it later on.
4. Not Creating A Legally Binding Agreement
Just because you’ve collected all of the necessary signatures doesn’t mean you have a legally binding agreement. There are certain provisions that need to be included in an agreement in order for it to be legally binding. To avoid this mistake, always consult with an attorney before finalizing any agreement to ensure that it meets all legal requirements.
5. Not Storing Signatures Securely
E-signatures contain sensitive information, so it’s important to store them securely. This means using a secure server or storage system and ensuring that only authorized individuals have access to the documents. To avoid this mistake, always make sure to properly secure any documents containing e-signatures.
6. Not Understanding The Laws And Regulations
E-signatures are governed by various laws and regulations, so it’s important to understand them before using e-signatures. This includes knowing which industries and types of documents require special considerations when using e-signatures. To avoid this mistake, always educate yourself on the relevant laws and regulations before using e-signatures in your business dealings.
E-signatures are a convenient way to get documents signed quickly and easily. However, they’re often used incorrectly, which can lead to costly mistakes down the road. By following the tips above, you can avoid making these common mistakes and ensure that your e-signature process is smooth and hassle-free.