Key Takeaways

  • Knowing where to sign a contract ensures enforceability and protects both parties from disputes.
  • Contracts should clearly state terms, duration, and termination conditions.
  • A severability clause prevents the entire agreement from being invalidated if one provision is unlawful.
  • Signatures must come from authorized representatives of companies or partnerships to bind the entity legally.
  • Electronic signatures are legally valid under U.S. ESIGN and UETA laws, as well as EU eIDAS, and are widely used in modern business.
  • Options for contract signing include wet ink, scanned signatures, and digital platforms; the choice depends on legal and practical requirements.
  • Best practices include confirming signer authority, dating the signature, using witnesses or notaries when required, and ensuring a secure signing process.

Knowing where to sign a contract is important since it is legally enforceable. This means neither party can violate the contract without being in jeopardy of a lawsuit. It doesn't matter what the other party says he'll do or not do, but only what is in the contract itself. For this reason, the language needs to be clear and should have a detailed outline of the agreement you've come to with the other party.

As an example, if you'll be entering a contract to purchase pens and paper from a supplier, but only the pens are stated in the contract, you'll have to pay for both the pens and paper without receiving the paper.

What Should a Contract Include?

An experienced attorney should look over the contract before you sign it. If there is anything you have questions about or disagree with, you'll want to talk to the other party to renegotiate before you sign it. A solid contract should be clear about how long the agreement will last. There may be a set term, such as putting an attorney on retainer for up to a year. Sometimes the contract will end after a particular project is done.

Either way, the contract needs to be clear about how both parties know the contract is expired. If there isn't a set period in the contract, put provisions under which it's possible for the contract to be terminated. This may be by mutual agreement, with 30 days' notice, or if one party breaches the contract.

Legal Validity of Digital Signatures

In today’s business environment, many contracts are signed electronically. Electronic signatures are legally recognized in most jurisdictions, including the U.S. under the ESIGN Act and UETA, and in the European Union under the eIDAS Regulation. These frameworks confirm that an electronic signature carries the same legal weight as a handwritten one, provided both parties consent to its use.Digital signing platforms also offer advantages such as authentication, audit trails, and tamper-proof storage, making it easier to prove the validity of a contract in court. When deciding where to sign a contract, parties should confirm whether electronic signatures are permitted by law and acceptable for the transaction type.

Severability Clause

Severability is defined as a legal term that means one part of the contract still stands if another part is found to be unconstitutional or illegal. You should have a severability clause in your contract; otherwise, the whole contract is null if someone sues over one line or the law changes.

Methods of Signing a Contract

There are several ways to sign a contract, and the method you choose may depend on the nature of the agreement and legal requirements:

  • Wet Ink Signature – Signing in person with pen and paper remains common for documents like deeds, wills, or contracts requiring notarization.
  • Scanned Signature – A handwritten signature can be scanned and inserted into digital documents, though it may face challenges if authenticity is questioned.
  • Click-to-Sign Agreements – Often used in online transactions, such as software licenses, where ticking a box or clicking “I agree” constitutes acceptance.
  • Digital Signature Platforms – Tools like DocuSign or Adobe Sign encrypt signatures, authenticate signers, and create an electronic audit trail.

How to Properly Sign a Contract

When you sign a contract on behalf of your business, you can't just sign your name or your business's name. Instead, you'll need to sign as an authorized agent of your company, so make sure the signature line clearly lists your name and title and states that you're signing "on behalf of" your company, which you should identify by name. If you sign as yourself, you could be personally liable for any lawsuits that arise from the contract.

You also do not want the wrong person representing the other party to sign the contract. If it is not signed by someone with the authority to do so, you may not have a legally binding contract with that company, or you might be limiting your ability to enforce the contract if something goes wrong down the road. If you are unsure, check with a senior official in the company, or ask the government "registrar" in your province or state to verify that person's authority.

Best Practices for Contract Signing

To avoid disputes, follow these best practices when signing:

  1. Confirm Authority – Ensure the person signing has legal authority to bind the organization.
  2. Use Proper Signature Blocks – Clearly include the signer’s name, title, and the company’s legal name.
  3. Date the Contract – Include the date of signing for clarity on when obligations begin.
  4. Consider Witnesses or Notaries – Some agreements, like real estate transfers, may require additional verification.
  5. Retain Copies – Each party should receive a final signed copy, whether physical or digital.
    By following these steps, parties reduce the risk of unenforceability and protect their rights if disputes arise.

Who Is an Authorized Representative of a Limited Company?

If a limited corporation or company is involved, the company's articles of association can decide who signs. According to English law, the director's signature is usually depended on by the other party. This is because the director has notable authority to bind the company that they're the director of. An executive officer may also sign the document instead of the director.

Who is an Authorized Representative of a Partnership?

The safest way to go is to get every partner to sign. However, this isn't always practical, so make sure that all the partners who sign are authorized to do so. You should have a third party watch the contract signing for evidential reasons. The witness can then confirm that the signature of the party matches that of the one on the agreement. England allows contracts to be effective without any of the signatures being witnessed. Some countries require the contract to be signed in front of a notary public in order for it to be effective.

Each jurisdiction has its own rules, so it's important to check what the position is with yours before the contract is finalized. Once the signing is observed, the witness should write the following:

  • His name legibly stated in capital letters.
  • His home address.

Remote and Online Signing Considerations

Remote signing has become standard practice, particularly for businesses operating across borders. Online signing solutions allow contracts to be executed securely without requiring all parties to be physically present. However, parties should verify:

  • Whether their jurisdiction requires notarization or witnessing even for digital contracts.
  • That the chosen platform complies with local data protection and authentication standards.
  • That both parties explicitly agree to conduct the transaction electronically.
    For high-value contracts, parties may also agree to hybrid approaches—signing electronically but following up with notarized hard copies.

Frequently Asked Questions

  1. Is an electronic signature legally binding?
    Yes, electronic signatures are legally valid under laws such as ESIGN, UETA, and eIDAS, provided the parties consent to their use.
  2. Do I need a witness when signing a contract?
    Not always. Witnesses are typically required only for certain contracts like property deeds or wills. Many business contracts do not require them.
  3. Can I sign a contract by email?
    Yes, attaching a signed copy to an email or using a verified e-signature platform is generally acceptable, though some agreements may still require physical signatures.
  4. What happens if the wrong person signs a contract?
    If someone without authority signs, the contract may not be enforceable against the organization. Always confirm signatory authority.
  5. Is a scanned signature the same as a digital signature?
    No. A scanned signature is an image of a handwritten signature, while a digital signature uses encryption for verification and provides stronger legal protection.

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