What Are Electronic Signatures?
An electronic signature (commonly known as e-signature) is a digital way of capturing a person’s intent to sign a document. In essence, it is a digital equivalent of a handwritten signature. Unlike traditional "wet" signatures, e-signatures enable you to sign documents online without needing to print, sign, and scan paper forms
E-signatures come in different forms. Some of the common examples you may have encountered are:
- A scanned handwritten signature
- A signature drawn on an electronic device
- Ticking the “I agree” checkbox in the terms and conditions of a website
Additionally, electronic signatures can also be created through dedicated digital signing platforms, which often incorporate features such as authentication, encryption, and audit trails to enhance security and enforceability.
Are E-Signatures Legally Valid?
The legal validity of electronic signatures is well established across many jurisdictions, although specific requirements may vary.
Regulatory frameworks such as the eIDAS in the European Union and the ESIGN Act in the United States provide clear guidelines to ensure that electronic signatures carry the same legal weight as traditional wet signatures, provided they meet criteria related to security, identity verification, and data integrity.
Below is a quick overview of how electronic signatures are recognized across different jurisdictions:
However, electronic signature requirements can still vary by jurisdiction, so it is important to check local rules.
Use Cases for E-Signatures in 2026
In most regulatory frameworks, wet signatures remain widely accepted for legal documents and agreements. However, electronic signatures have become increasingly common and are widely used in business and employment-related transactions.
Nonetheless, there are still certain high-stakes documents where electronic signatures may be restricted or subject to additional requirements, especially those requiring notarization or in-person verification. These include but are not limited to:
- Deeds
- Wills
- Court documents
- Negotiable instruments (like promissory notes)
- Registrable documents
However, the legal landscape is evolving. Electronic notarization is gradually being adopted in several jurisdictions, like the Philippines where electronic notarization — particularly in-person and remote notarization — has been legalized by the Supreme Court in 2025 for certain electronic documents, provided that strict requirements and procedures are met.
Similarly, regulatory frameworks in the UK have evolved to accept electronic signatures for specific land and property transactions. Notably, HM Land Registry permits the use of Qualified Electronic Signatures (QES) for certain documents as long as technical and procedural conditions are met.
In Singapore, electronic signatures are increasingly recognized for certain negotiable instruments, provided they adhere to strict statutory requirements.
Collectively, these shifts indicate a global transition toward digital authentication, suggesting that electronic signatures are beginning to become more accepted in even the most formal legal domains where wet-ink signatures were once the exclusive standard.
While this highlights a broader trend toward digital parity, always confirm current statutory requirements with your legal counsel before using e-signatures in your documents and agreements.
Types of Electronic Signatures
There are several legally recognized types of electronic signatures, which vary across different compliance frameworks. The most widely accepted classification is the standard established by eIDAS, which tiers e-signatures into three distinct levels based on their security, authentication, and legal weight. Let’s briefly go through them:
- Simple Electronic Signature (SES). This is the most common and convenient form of electronic signatures, offering only a basic level of identity verification. Some examples include typing a name at the end of an email or scanning an image of a handwritten signature.
- Advanced Electronic Signature (AES). A more secure form of e-signature compared to the SES that holds more legal weight in court. It is (a) uniquely linked to the signer, (b) capable of identifying the signer, (c) created using e-signature creation data that is under the signer’s control, and (d) capable of detecting any change to the document.
- Qualified Electronic Signature (QES). An AES made using a qualified signature creation device – a software or hardware creating e-signatures that specifically meets the requirements laid out in eIDAS – and is based on a qualified certificate issued by a qualified trust service provider. It is generally considered as an equivalent to handwritten signatures, given how rigorous its requirements are.
Do note that while the eIDAS framework is perhaps the most recognized, classification standards vary significantly depending on the governing laws of the country. Always verify the signature classes recognized in the region where your agreements are being processed.
Electronic Signatures vs. Digital Signatures: What’s the Difference?
Many people use the terms “electronic signature” and “digital signature” interchangeably, but they are not identical. E-signatures refer to all the digital methods of capturing agreement. On the other hand, digital signatures are a specific type of electronic signature that uses cryptographic encryption and is recognized for its high security.
To put it simply: All digital signatures are e-signatures, but not all digital signatures are e-signatures.
To help you distinguish between the two, the table below breaks down the key differences between electronic and digital signatures across 4 major categories:
Benefits of Using E-Signatures
Adopting electronic signatures can positively impact your business operations. Here are some of the core advantages:
1. Cost Savings
E-signatures eliminate the need for paper, printing, and physical storage, leading to significant cost reductions. They also reduce expenses related to shipping or courier services when sending documents for wet signatures. By going paperless, companies can allocate funds to other critical projects instead of operational costs.
2. Operational Efficiency
E-signature speeds up processes by removing manual steps involved in printing, signing, and scanning documents. This improved efficiency time allows your team to focus on tasks that drive the business forward.
3. Faster Turnaround Time
Utilizing e-signatures accelerates the entire deal cycle, especially when using dedicated signing platforms. For instance, a leading Philippine manufacturing company reduced their contract lifecycle by 40% after using Lexagle’s electronic signature features, especially for international transactions.
4. Sustainability
Using electronic signatures aligns with sustainability goals by reducing paper usage and waste, supporting a greener business model that resonates with eco-conscious stakeholders.
Shifting towards e-signatures, when they’re applicable, provides your business with several “wins” and these wins are best realized when using a dedicated e-signature platform. By utilizing Lexagle, you can smooth digital signing experience without compromising security.
As an end-to-end contract management solution, Lexagle allows you to not only draft your agreements but also send them out within the same platform and securely store them for safekeeping and compliance. This unified approach eliminates the hassle of switching between multiple apps paired with its workflow automation feature accelerates the deal cycle and saves your team time and energy.
Moreover, by digitizing your contract signing process, you enhance your business’s sustainability impact. See how Lexagle streamlines your electronic signing process and discover the efficiency gains for your specific team.
Frequently Asked Questions
Here are answers to some of your questions about e-signatures:
How do you create e-signatures?
- You can create e-signatures through manual methods (e.g., pasting a scanned signature on Word) or dedicated platforms like Lexagle which utilize cryptographic encryption and secure audit trails.
What documents can you sign electronically?
- Many business and employment agreements can be signed with electronic signatures. However, it is advisable that you consult your legal counsel to ensure that documents meet local and international regulatory standards.
What documents can’t be signed with electronic signatures?
- Most compliance frameworks do not recognize electronic signatures for high-stakes agreements (e.g., wills), certain real estate agreements, and notarized documents requiring physical presence. However, since acceptance depends on the laws of the country, it is important to check in with a legal professional.
Disclaimer: This article is intended for informational purposes only and should not be considered legal advice. Lexagle does not provide legal services. Readers should consult a qualified legal professional for advice regarding their specific legal matters.
