An electronic signature works the same as the usual paper contract only that it’s done electronically. The uncertainty that hanged around such contracts was erased by the enactment of the Electronic Signatures in Global and International Commerce Act (ESGICA). Electronic signature was made legal and valid just as is the case with paper contracts. This came as good news to companies and organizations whose business lifeline is online.
The companies that benefited the most in the legalization of Electronic signature were mainly those in financial services, e marketing as well as those dealing with household services. The law also came as a shot in the arm to B2Bs whose business operations require agreements that are legally binding when it comes to supply of orders and services. Legalization of electronic signature therefore saw online business growing phenomenally. Tax departments have also benefited a lot from E-signature as are able to register fiscal cash by using a unique serial number that is written securely and the assigned to the owner of the cash register after purchase. Companies no longer need to keep papers and copies of copies of financial documents because the doubts of authenticity of documents are no longer exist with E-signature.
What exactly is an E-Signature? Simply put, it is an electronic process that ensures the authenticity of any electronic document either in form of an e-mail, a file in text format or spreadsheet. This therefore means that one is able to establish the creator of the document as well as that the document has not been altered since its creation. An E-signature is usually based on various types of encryption to guarantee the authentication of the document. Encryption means is defined as the process through which it is verified that information is from its original source. It involves the use of password where the user enters the name and the password when the computer demands.
