Electronic Contracts

Electronic contracts have become increasingly common, as more and more commerce takes place online. Physical paper contracts are often not needed, and many companies and private individuals choose to use electronic contracts in order to save time and decrease paper consumption. Electronic contracts can be easily filed for future access, and take up less space than paper contracts. Electronic contracts can also be delivered and signed on a matter of minutes, as opposed to paper contracts which must be physically mailed. In order to secure electronic contracts, digital encryption is often used. Digital encryption prevents electronic contracts from being altered and guarantees the authenticity of the contract. Electronic signatures are used to sign electronic contracts. Electronic signatures are digital representations of handwritten signatures. The Electronic Signatures in Global and International Commerce Act, also known as the E-Sign Act, gives validation to contracts using electronic signatures, making them just as legally valid as paper contracts signed by hand.

Fast Facts

  • AT&T saves 6 million pages of paper, or about 520 trees per year by providing employee services online.
  • Using electronic contracts may reduce the amount of time taken to process a contract by 80 to 90%.

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