{"id":8002,"date":"2023-02-15T13:49:36","date_gmt":"2023-02-15T13:49:36","guid":{"rendered":"https:\/\/signdesk.com\/in\/?p=8002"},"modified":"2025-09-17T07:19:52","modified_gmt":"2025-09-17T12:49:52","slug":"signing-of-contracts","status":"publish","type":"post","link":"https:\/\/melento.ai\/en-in\/blog\/signing-of-contracts","title":{"rendered":"Signing Of Contracts – How To Sign Contracts Online The Smart Way"},"content":{"rendered":"

\"signing<\/h2>\n

A Brief Overview Of Signing Of Contracts<\/b><\/span><\/h2>\n

The signing of contracts<\/strong> is not only a ubiquitous activity but also a powerful legal act that indicates contractual terms and conditions have been consented to and act as evidence.\u00a0<\/span><\/p>\n

Without a valid signed contract, the risks of forgery, fraud, and legal problems down the line are massive. The conventional signature process is often expensive & time-consuming for businesses. Written signatures are also prone to security and data risks like manual errors, physical damage of signed papers, fabrication, and lost documents.<\/span><\/p>\n

The signing of contracts<\/strong> online is rapidly gaining popularity with the increasing use of electronic signatures. Value-based contract management tools can streamline the eSign workflow<\/a> and help procure signed contracts instantly.\u00a0<\/span><\/p>\n

AI-powered Contract Lifecycle Management (CLM)<\/strong><\/span> automates the signing of contracts in a paperless digital environment. The smart dashboard of the CLM software<\/strong><\/a> helps the client to compose contracts instantly with clause and template libraries, collaborate online with speedy negotiation<\/a> cycles, sign contracts online with remote access anytime, and monitor contracts through every stage on the platform.\u00a0<\/span><\/span><\/p>\n

In the era of digital transformation, organizations are gradually shifting from manual to digital workflows. Online signing of contracts accelerates business growth, lowers operational costs, and improves productivity.\u00a0<\/span><\/p>\n

What Is A Signature – Legal Perspectives<\/b><\/span><\/h2>\n

According to Article 7 of the <\/span>UNCITRAL Model Law on Electronic Commerce, 2001<\/span><\/a>, a signature is a process that procures sufficient evidence to identify the person associated with it along with the content of a document and to provide certainty to the personal involvement of that person in the act of signing an agreement<\/strong>.<\/span><\/span><\/p>\n

The form or record of a signature is usually the signatory\u2019s name, written in the signatory\u2019s own handwriting on a paper document which is known as a \u201cmanuscript signature\u201d with variations ranging from simple modifications such as crosses or initials through pseudonyms and identifying phrases, symbols, or a logical alteration of information content, to printed names and rubber stamps.\u00a0<\/span><\/p>\n

In a legal signing setting, the legitimacy of a valid signature can be resolved with proper inspection by drawing out an analogy with the associated manuscript signature. This is usually accomplished by witnessing the signature being re-created by the signatory.\u00a0<\/span><\/p>\n

The primary function of a signature in contract is to provide evidence of the following.<\/span><\/p>\n

    \n
  1. The identity of the signatory<\/span><\/li>\n
  2. Intention to make a signature<\/span><\/li>\n
  3. Adaption of document contents by the signatory<\/span><\/li>\n
  4. Validating official action<\/span><\/li>\n
  5. Protecting legal rights<\/span><\/li>\n<\/ol>\n

    An agreement can become a contract only if it is legally enforceable by law or fulfills the conditions laid down under section 10 of the Indian Contract Act of 1872. It states that a contract is basically an agreement, oral or written, between two or more parties that define rights, duties, and obligations which each party has to perform. A signature is evidence of acceptance of an agreement.\u00a0<\/span><\/p>\n

    Section 10 of the <\/span>Indian Contract Act<\/span> enumerates the key elements that make a valid contract as follows<\/span><\/span><\/p>\n

      \n
    1. Offer<\/span><\/li>\n
    2. Acceptance<\/span><\/li>\n
    3. Intention to Create Legal Relationship<\/span><\/li>\n
    4. Lawful Object and Lawful Consideration<\/span><\/li>\n
    5. Consideration should not be forbidden by law<\/span><\/li>\n
    6. Capacity to Contract<\/span><\/li>\n
    7. Possibility of Performance<\/span><\/li>\n
    8. Legal Formalities<\/span><\/li>\n
    9. Free consent<\/span><\/li>\n<\/ol>\n

      Definition Of Electronic Signature\u00a0<\/b><\/span><\/h2>\n

      As the signing of contracts<\/strong> has moved into paperless electronic formats, the criteria for the definition of a signature have been substantially broadened. There is a huge demand for a reassessment of what constitutes a valid signature with the increasingly widespread use of electronic communications.<\/span><\/p>\n

      The term \u201cElectronic signature\u201d refers to data in electronic form, affixed to, or logically associated with digital information as data messages or electronic documents, which may be used to identify the signatory in relation to the data message and to indicate the signatory\u2019s approval of the information contained in the data message; according to Article 2, UNCITRAL Model Law on Electronic Commerce, 2001.\u00a0<\/span><\/p>\n

      Electronic signatures are legally valid signatures in India under the<\/span> Information Technology Act, 2000<\/span><\/a>. In the USA, the<\/span> Electronic Signatures in Global and National Commerce (E-Sign) Act, 2000<\/span><\/a> recognizes the validity of electronic records, contracts, and signatures as having the same force as law as their paper-based counterparts.<\/span><\/span><\/p>\n

      What Is A Signed Contract?\u00a0<\/b><\/span><\/h2>\n

      The signing of contracts is a fundamental legal act<\/a>. Every commercial document needs to be signed to be legally valid.\u00a0<\/span><\/p>\n

      A contract<\/a> is a legally binding agreement between two or more parties. A signed contract is a written agreement with the signatures affixed on the contract signifying that the signatories have reached an agreement and understand the terms and obligations contained therein.\u00a0<\/span><\/p>\n

      The signing of contracts<\/strong> is a general way for the parties to an agreement to indicate their consent to an agreement. However, improper signatures can render the contract unenforceable and affect the legitimacy of the agreement. A contract must be signed and attested by a witness and registered if required by the law. A signed contract validates the authenticity of a signed document, confirming that the information originated from the signer without any alteration.<\/span><\/p>\n

      Protocols For Signing Of Contracts<\/b><\/span><\/h2>\n

      Before signing a deal, signers should be aware of the protocols associated with the signing of contracts<\/strong>. Adding one\u2019s signature to the dotted line, signals acceptance of the terms and conditions of the contract and the obligation to uphold one\u2019s end of the bargain.\u00a0<\/span><\/p>\n

      While oral contracts can hold water in a court of law, certain types of agreements<\/a> must be in written form. According to the Statute of Frauds section of the <\/span>Uniform Commercial Code<\/span><\/a>, a contract should have a written record when it involves an amount higher than $500 in exchange for goods or services.<\/span><\/span><\/p>\n

      Before signing an agreement, signatories should make sure that they:\u00a0<\/span><\/p>\n

        \n
      1. Know and understand the terms and conditions of the contract<\/span><\/li>\n
      2. Agree to these terms and conditions<\/span><\/li>\n
      3. Consent to sign in a corresponding manner<\/span><\/li>\n
      4. Are prepared to bear the consequences of breaching the contract<\/span><\/li>\n
      5. Possess legal authorization to sign the contract<\/span><\/li>\n<\/ol>\n

        Additionally, signatories should ensure that they possess copies of the signed contract and that the mode of contract execution is legally tenable in the jurisdiction of the contract.\u00a0<\/span><\/p>\n

        A contract, once signed, is legally binding; hence signatories should take the utmost care before signing a deal<\/strong>. Contracts shouldn\u2019t be signed in the following situations.<\/span><\/p>\n