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What are electronic contracts? How do they work

Electronic contracts, are legally binding agreements that are created, signed, and stored electronically. Learn about their features and benefits with Signeasy.

Rachana Chotia
Rachana Chotia
April 19, 2023
 min read
What are electronic contracts? How do they work

Frequently asked questions

How do electronic contracts work?
Electronic contracts are created, signed, and managed using digital technology. They function in the same way as traditional paper contracts, except the entire process is conducted online. E-contracts typically use electronic signatures, a secure way to verify the signatory’s identity and ensure the document’s authenticity.
What is a contract?
A contract is an agreement where two or more parties form an obligation to do something or refrain from doing something.
What is an electronic contract in contract law?
Electronic contracts are contracts that are not paper-based but are equivalent to written contracts. These contracts are made and signed electronically and have the same legal effect as a traditional paper contract until specific requirements are met.
What is an example of an electronic contract?
An online purchase agreement is an excellent example of an e-contract. The buyer must agree to the seller’s terms and conditions before completing the transaction. The agreement incorporates details like the product’s price, shipping information, warranties, etc. The buyer has to click on “I agree.” It is a confirmation that the buyer has now agreed to the contract.
Is an electronic contract legally valid?
Yes, an electronic contract is legally valid if it complies with specific requirements.
Rachana Chotia
Rachana Chotia
Rachana is the Content Marketing Manager at Signeasy, where she works with the product & customer teams to create content related to eSignature and contract workflows. In her free time, she enjoys going for walks, watching anime, and reading a good book.
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