Signing Contracts Online: Definition, Benefits and How It Works

Signing contracts online brings plenty of benefits (productivity above all), but what about its legal value? How does online contract signing actually work? Is the process secure?

What is online contract signing?

An online contract (or electronic contract) is a contract drawn up and signed in digital form. It contains the same provisions as a paper contract.

There is, however, one major difference between the two. Every stage in the life cycle of a contract signed online is digitised:

• Creating the contract / importing it into e-signature software
• Signing the contract online
• Archiving the contract

Online contract signing is carried out using e-signature software that produces legally admissible evidence.

This solution can be used for many types of contract: employment contracts and other HR documents, service agreements, sales contracts, rental agreements and more.

What is the legal value of signing a contract online?

Paper contract or online contract: the same legal value, provided two conditions are met!

An online contract has the same legal value as a paper contract, provided two conditions are met.

First, the person who issued the electronic document must be duly identified. Second, the contract must be created and stored in a way that guarantees its integrity.

Using an electronic signature solution is precisely what allows you to meet both conditions:

• Authenticate the signatories
• Guarantee the integrity of the document

Electronic signature and the legal value of the online contract.

The electronic signature (which is not simply the digital equivalent of a handwritten signature) is what gives the online contract its legal value.

The signatories’ authentication and the integrity of the document are guaranteed by an electronic certificate. Signing takes place on a secure platform.

The result: signatories cannot deny having signed the document in question!

Worth noting: there are different levels of electronic signature, defined by the eIDAS Regulation, a European framework designed to make secure digital identification easier across Europe.

Sign.vet is a trusted electronic signature solution, hosted in Europe, with data encryption. Contracts signed online with Sign.vet are secure and legally valid.

Signing a contract online: what are the benefits?

Time savings and lower costs

Online signing brings time savings and productivity gains to organisations. There is no longer any need to get people, sometimes far apart, into the same room to sign a contract.

A few clicks are now enough. Another advantage: signing a contract online means you no longer have to print and send documents.

Faster, smoother processes

Electronic signature platforms speed up and smooth out processes. The various parties (employees, clients, suppliers, partners and so on) can sign online from anywhere and on any device (computer, smartphone, tablet), sometimes even without an internet connection thanks to “offline” mode.

Electronic signing can even be done without an internet connection thanks to “offline” mode.

Stronger security for exchanges and data

Thanks to electronic signatures, signing a contract online is a highly secure process. The key to making online contract signing as secure as possible is to choose a sovereign electronic signature solution that complies with the eIDAS Regulation.

Data security extends beyond the signing of the contract, because the document is sealed as soon as the signatories give their consent. The contract is then archived securely.

How do you sign a contract online? The steps.

Signing a contract online happens in several steps. The whole life cycle of the contract is digitised and managed online, usually in this order:

• Log in to the e-signature software
• Upload the contract to be signed
• Set up the contract (add annexes, for example)
• Add the signatories (using their contact details)
• Send the contract to the signatories (they receive a notification, an email or an SMS that lets them open the contract, read it, initial it and sign it)
• Sign online

And that’s it! Once signed, the contract is archived.

Simple and fast, online contract signing is a process that more and more organisations are adopting to boost productivity without compromising on security.

Streamline and secure the signing of your contracts with the Sign.vet electronic signature solution.

You might also be interested in: “The benefits of electronic signatures.”

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