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Electronic Signatures: Legal and Practical Considerations for E-Signing on the Virtual Dotted Line

In assessing whether or how to employ e-signatures, particularly in higher risk transactions, organizations should be careful to manage the practical issues and potential legal complexities associated with e-signatures through careful assessment and a robust governance program.

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As technology pervades all aspects of business life, business leaders, customers and employees increasingly expect to be able to execute signatures on agreements, documents and elsewhere with the same level of convenience and assurance as the rest of their IT-enabled business. In response, organizations are exploring solutions allowing individuals to sign these documents electronically, and without requiring signatories be physically present. These electronic signature (“e-signature”) solutions provide substantial benefits not only in terms of convenience, but also security and record keeping. However, in assessing whether or how to employ e-signatures, particularly in higher risk transactions, organizations should be careful to manage the practical issues and potential legal complexities associated with e-signatures through careful assessment and a robust governance program.

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