In contemporary society, people sign contracts through the internet since it is easy and can be implemented by any entity. The use of remote signing is a time saver and does not require individuals to be in the same room together.
However, this type of convenience does not come without increased security precautions. It is, therefore, important that your online contracts are signed appropriately to protect both parties and reduce legal risks.
Below are some ways that can help to protect your online contracts and make your online contracts legal and secure.
Utilize a Reliable Digital Signature Service
The first task to safely sign a contract online is to select the most suitable digital signature service. Take into consideration the fact that there are many technologies used in contract platforms that utilize encryption, but make sure these security features conform to eIDAS in Europe or the ESIGN Act in the U.S—to preserve the true copies of the contract and avoid forgery.
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Verify the Signer’s Identity
It is important to ensure that the identity of all parties in relation to a written or an oral contract is established before affixing signatures or requesting others to do so. To ensure that a contract online platform is reliable, know that it typically has features that include multi-factor authentication or the need for the signers to produce their identification. These steps add an additional layer of security to the signing process, so that only those accredited can sign.
Use Secure Internet Connections
When entering into a contractual agreement online, ensure that you are using a reliable Internet connection. Public Wi-Fi can compromise an individual’s identification by passing on sensitive information to hackers. If a public network has to be employed, the preferred option is to use a Virtual Private Network (VPN).
Make Sure to Record the Signed Contract
Even when you have signed a contract online, it is important to save the signed copy of the document for future use. Many digital signature services have the feature of an automatic backup, and if not, copies of the signed document can be downloaded and saved in a cloud database or in an encrypted hard drive. This keeps records in the eventuality that the company is faced with a lawsuit or any other problem.
Restrict Access to the Contract
To reduce the possibility of changes being made without proper authorization, restrict the number of parties that have access to the contract, both while it is being prepared for signing and after signing. Assign permissions for the document—to view, edit, sign and approve. Certain online contract platforms have features such as audit trails, through which all the activities within the document are recorded, inclusive of the changes made.
Conclusion
Indeed, it is safe to sign contracts online as long as you select reliable digital signature services, identify parties, and adhere to the best practices. It is advisable to keep records of all your activities, and ensure that you follow regulatory measures that enhance security for you and your business.
