Start Your eSignature Journey: how to create an electronic contract

What is an electronic contract?

An electronic contract is a legally binding agreement created and signed in a digital format. It allows parties to enter into agreements without the need for physical documents. Electronic contracts can encompass various types of agreements, including service contracts, sales agreements, and employment contracts. By using electronic signatures, these contracts streamline the process of signing and managing documents, making it more efficient and accessible.

Key elements of an electronic contract

To ensure an electronic contract is valid and enforceable, it should include the following key elements:

• Offer and Acceptance: Clear terms outlining what is being agreed upon and acceptance by all parties.
• Consideration: Something of value exchanged between the parties.
• Capacity: All parties must have the legal ability to enter into the contract.
• Legality: The contract must comply with applicable laws and regulations.
• Signature: An electronic signature that indicates agreement to the terms.

Steps to complete an electronic contract

Creating an electronic contract using airSlate SignNow involves several straightforward steps:

1. Create the document: Use a template or create a new document that outlines the terms of the agreement.
2. Fill out the contract: Enter the necessary information, such as names, dates, and specific terms.
3. Request signatures: Send the document to the involved parties for their electronic signatures.
4. Sign the contract: Each party reviews the document and applies their eSignature to confirm their agreement.
5. Store the contract: Once signed, securely save the document for future reference.

Legal use of electronic contracts

In the United States, electronic contracts are governed by the Electronic Signatures in Global and National Commerce (ESIGN) Act and the Uniform Electronic Transactions Act (UETA). These laws establish that electronic signatures have the same legal standing as traditional handwritten signatures, provided that certain conditions are met. It is important for users to ensure compliance with these regulations when creating and executing electronic contracts.

Security & Compliance Guidelines

When using airSlate SignNow to create and manage electronic contracts, it is essential to adhere to security and compliance guidelines to protect sensitive information. Key practices include:

• Data Encryption: Ensure that documents are encrypted during transmission and storage.
• User Authentication: Implement strong authentication methods to verify the identity of signers.
• Audit Trails: Maintain a record of all actions taken on the document for accountability.
• Compliance Checks: Regularly review processes to ensure adherence to relevant laws and regulations.

Sending & Signing Methods

airSlate SignNow offers various methods for sending and signing electronic contracts. Users can:

• Use the Web Platform: Access airSlate SignNow through a web browser to create, send, and sign documents.
• Mobile App: Utilize the airSlate SignNow mobile application to manage contracts on the go.
• Email Invitations: Send contracts directly via email for quick access and signing.