Except for few specific circumstances, it is almost considered ancient to have parties to a contract physically meet up to a sign a contract in a boardroom. With the fast-paced lifestyles of most high-level executives, a more efficient method of signing contracts has been introduced: the e-Signature.
\nAlthough convenient, do e-signatures really create a valid and binding contract? Can e-signatures really replace hand-written signatures?
\nAn e-Signature can be considered a valid signature. In various jurisdictions, legislatures have enacted laws to deal with electronic signatures. For example, Section 11 of Ontario’s Electronic Commerce Act provides:
\n“Subject to subsections (3) and (4), a legal requirement that a document be signed is satisfied by an electronic signature.”
\nIn a recent case, Ghaed v Telus Communications Co, 2013 (BC), the plaintiff disputed his obligation to make a payment under a signed services contract. The plaintiff argued that although the agreement had his electronic signature, since he had not placed the electronic signature on the agreement, he was not bound by it.
\nIt was established that the signature had been placed on the agreement by his office manager. The office manager stated she was given express consent by the plaintiff to accept the services contract. Based on this sequence of events, including an opportunity for the plaintiff to terminate the contract, the court found that the services contract was valid and binding on the plaintiff.
\nAn electronic signature may not be an acceptable method of signature for all legal agreements. The following agreements cannot be validated by an electronic signature (in Ontario):
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