The Procurement Glossary » Electronic Signature (e-Signature)

Electronic Signature (e-Signature)

Contracts & Legal

Also known as: Digital Signature

Definition

A legally recognised digital method of signing a document, replacing a handwritten signature.

Explanation

e-Signatures speed execution and cut turnaround, with audit trails proving who signed and when. Their legal validity is well established in most jurisdictions, making them standard for contracts and POs.

Example

Both parties e-sign the MSA in minutes, and the CLM logs the signing trail.

Related terms

• Contract Lifecycle Management (CLM) — The end-to-end management of contracts using software — authoring, negotiation, approval, execution, storage and renewal.
• Contract — A legally binding agreement between buyer and supplier setting out what will be supplied, at what price and on what terms.
• Redlining — The process of marking up proposed changes to a contract during negotiation, showing edits both parties can review.

Frequently Asked Questions

What is Electronic Signature (e-Signature)?

A legally recognised digital method of signing a document, replacing a handwritten signature. e-Signatures speed execution and cut turnaround, with audit trails proving who signed and when. Their legal validity is well established in most jurisdictions, making them standard for contracts and POs.

Can you give an example of Electronic Signature (e-Signature)?

Both parties e-sign the MSA in minutes, and the CLM logs the signing trail.

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