Electronic & Digital Signatures
When can an electronic signature be open to dispute, be deemed invalid & an agreement set aside?
A California Court of appeal recently held that a business could not verify a consumer’s electronic signature, despite the Docusign Markers within the agreement. (Fabian v Renovate Inc).
Even though the signature block stated “DocuSigned by: ”, and included a printed signature for the party, the date of the purported signature, a 15 digit alphanumeric character, and the words “Identity Verification Code: ID Verification Complete”.
The Court found that the signature block alone is not enough, there was a failure to establish:
- Who sent the agreement
- How was the agreement sent
- How was the electronic signature placed on the agreement
- Who received the signed agreement
- How was the signed agreement returned to the parties
- How was the identity of the parties verified
In conclusion, the Court found there was insufficient authentication of the electronic signature.
If you transact with electronic signatures, it is wise to take into account what the California Court determined, make sure you can truly verify every aspect of the electronic signature process. Make sure the electronic signature tool you use doesn’t compromise the legality of the document or agreement you are signing.
