By Chris Brown, Attorney & Founder of Pixel Law

By Chris Brown, Attorney & Founder of Pixel Law

If you’re still relying on paper contracts, you’re wasting time, money, and efficiency. Whether you’re running a startup in Kansas City or a small business in Boulder, using electronic signatures (e-signatures) can streamline your operations and improve contract security. Here’s what you need to know.

Most e-Signatures Are Valid

The ESIGN Act (Electronic Signatures in Global and National Commerce Act), signed into law in 2000, alongside state laws adopting the UETA (Uniform Electronic Transactions Act), establish that:

  1. A signature cannot be denied legal effect solely because it is in electronic form.
  2. A contract cannot be denied enforceability solely because an electronic record or signature was used.

Requirements for e-Signatures to Be Valid

For an e-signature to be enforceable, the following conditions must be met:

  • The signing party intended to sign the contract.
  • The signing party consented to do business electronically.
  • The e-signature platform saves the signed contract and provides an audit trail that tracks how the signature was obtained.
The Entrepreneur's Guide to Contracts

The Entrepreneur’s Guide to Contracts

Simplify your contracts to create better deals.

Exceptions to e-Signature Validity

While most contracts can be signed electronically, some legal documents require physical signatures due to statutory requirements. These typically include:

  • Wills and trusts
  • Family law documents (such as adoption or divorce papers)
  • Court orders or official government filings
  • Certain real estate transactions

Each state may have additional exemptions, so businesses should verify requirements for specific document types.

(Related: Make sure you properly identify the parties and use the right signature formats.)

Why You Should Use e-Signatures

The benefits of e-signatures are hard to ignore. If your business still relies on physical paperwork, here’s why you should switch:

  • No more paper, printers, scanners, faxes, or email attachments – Everything is handled digitally.
  • Faster turnaround time – Contracts can be signed in minutes, rather than days.
  • Automatic delivery – Once signed, final copies can be sent to all parties instantly.
  • Secure document storage – The e-signature platform retains a copy of the contract for easy access.
  • Legally admissible audit trails – Courts recognize e-signature audit logs as proof of when, where, and how a contract was signed.
  • Cost-effective – Recipients sign for free, while businesses typically pay a small subscription fee (often around $25/month).

Final Thoughts

e-Signatures provide a faster, safer, and more efficient way to manage contracts. Whether you’re a freelancer, startup, or established business in Kansas City, Boulder, or beyond, making the switch to digital contracts can improve your workflow and reduce legal risks.

*This article is general in nature and is not legal advice.

The Entrepreneur's Guide to Contracts

The Entrepreneur’s Guide to Contracts

  • What is a Contract
  • How to Write a Contract
  • Essential Contract Provisions
  • How to Review a Contract
  • How to Negotiate a Contract
  • And more!