Legal Signature: Definition and Requirements 2025

A legal signature is a unique mark or name written by an individual to authenticate documents, signifying approval and acceptance. It can be handwritten, electronic, or digital, each with specific legal requirements. Handwritten signatures are traditional, while electronic signatures are increasingly used due to digital transformation. They are governed by laws like the Electronic Signatures in Global and National Commerce Act. To ensure a signature is legally binding, it must clearly identify the signatory, show intent to sign, and be associated with the document. Understanding these elements is crucial for businesses transitioning to digital workflows, ensuring compliance and legal validity in 2025.

A legal signature refers to the signatory's name written in a distinct form that's used to identify themselves or provide authorization on important business documents.

The way people do business traditionally has changed. Wet signatures are being used less. Nowadays, people are turning to paperless digital formats to streamline operations. The criteria around what constitutes a legal signature have shifted. You can also read our guide about what is a wet signature if you're unsure what kind of signature to use.

If you've ever signed anything before, then you've likely used a legal signature. When it comes to determining what exactly is a legal signature, things can get complicated.

This article examines what it means for a signature to be legal and how you can ensure that what you sign is legally binding—even when it's not in writing.

Ready? Let's jump right in.

What constitutes a legal signature?

Essentially, a signature refers to a mark an individual makes on a document (or another instrument) to acknowledge that they agree to or accept conditions that are outlined by what they're signing.

As business becomes more global every day, digital signatures have changed how people do business and sign contracts. The process of printing, signing, and scanning business documents is too time-consuming for modern business. Digital signatures offer a more streamlined solution that saves both time and money.

An electronic signature, also known as an e-signature or typed signature, is created when someone types their name on a document or pastes a scanned image of their handwritten signature. As we move further into a digital world where handwritten signatures are somewhat outdated, the scope of what constitutes a legal signature has shifted significantly.

Particularly for freelancers, electronic signatures simplify the whole process of signing important business documents like contracts, quotes, proposals, retainer agreements, and other types of forms.

Regardless of the form it takes, it's important that a signature is used as proof that information has been considered and accepted by the signer. That means a signature can be stylized to a point that it's completely illegible to others, but still be legal.

For a freelance agreement to be legally binding, it must be signed by all parties involved. This is the most common way for individuals to indicate they have carefully read and agreed to the terms outlined in a contract or other type of document. Regardless of what the signature looks like—whether written neatly, scribbled, or typed—it proves that conditions have been considered and accepted.

As long as a signature is representative of who a person is and their intent, any kind of mark is considered legal.

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Does a legal signature have to include your full name?

No, a legal signature does not have to be your full name. A signature refers to any mark made by someone on a document to express their consent to the outlined conditions. It can be an illegible mark, a squiggle, or a scanned picture of a signature if signing electronically.

Are initials considered a legal signature?

Legal signatures can be as simple as an individual's initials. The signature should match what you have used on other legal documents.

For example, if your signature on your driver's license is simply "LM" rather than your full name, it should be the same on any other document you've signed.

This helps you avoid problems with your bank or other legal institutions that have your signature on record.

What are the rules for legal signatures?

The legality of signatures includes various marks and actions that indicate someone's identity and intent. In the United States, the rule is that unless a document specifies a certain signature method, it can be signed in several ways. Digital or other document types can be signed using handwritten or typed signatures, as long as it shows the signer consented to signing.

Requirements for a legally binding signature

Intent to sign

A legally binding signature requires clear intent from the signer to agree to the document's terms. This means the signer must consciously decide to sign, showing their willingness to be bound by the contract or agreement. For freelancers and small business owners, this can be as simple as signing a printed contract or clicking an "I agree" button on an electronic form.

Platforms like DocuSign and HelloSign in 2024 capture the signer's action and timestamp, proving intent. Without this deliberate action, a signature may be challenged as invalid. Always ensure the signer understands what they are signing to avoid disputes.

To confirm intent, communicate clearly with clients or partners before signing. Explain the document's purpose and ask for explicit agreement. This reduces confusion and strengthens the enforceability of your contracts.

Consent and understanding

Consent means the signer agrees voluntarily without coercion, and understanding means they comprehend the document's content. Both are essential for a signature to be legally binding. If a signer is forced or misled, the signature can be invalidated in court.

Freelancers should provide contracts in clear, simple language and offer to answer questions before signing. For example, using HelloBonsai’s contract templates in 2024 helps ensure clarity by including plain-language clauses tailored to freelancers and small businesses.

Always document that the signer had the opportunity to review and ask questions. This can be done through email confirmations or recorded video calls. Taking these steps protects you from claims that the consent was not genuine.

Signature attribution

Signature attribution means the signature must be linked to the person who signed. This prevents forgery and ensures accountability. In 2024, electronic signature platforms use multi-factor authentication, such as email verification or SMS codes, to confirm signer identity.

For example, when a client signs a contract using Adobe Sign, their email address and IP address are logged, creating a digital audit trail. This evidence supports the signature’s validity if challenged later.

To enhance attribution, freelancers should use reputable e-signature tools and avoid accepting scanned or emailed signatures without verification. This practice strengthens your legal position and reduces fraud risk.

Record retention and security

Keeping signed documents safe and accessible is crucial for enforcing agreements. Record retention policies require you to store signed contracts securely for a reasonable time, often at least 3-7 years depending on your jurisdiction and industry.

Using cloud-based contract management tools like HelloBonsai or PandaDoc in 2024 helps freelancers organize and protect signed documents with encryption and backup. Physical copies should be stored in locked cabinets if digital storage isn’t used.

Regularly back up your records and restrict access to authorized personnel only. This ensures you can produce valid signatures when needed and comply with data protection laws such as GDPR or CCPA if applicable.

Different types of legal signatures

Physical or wet signatures

Physical or wet signatures are the traditional handwritten signatures made with a pen on paper. These signatures have been legally recognized for centuries and remain common for contracts, agreements, and official documents requiring notarization. For freelancers and small business owners, wet signatures are often necessary for in-person client agreements or when dealing with government forms.

For example, signing a lease or a printed contract typically requires a physical signature to be valid. However, physical signatures can be time-consuming, especially if parties are in different locations, and they must be stored securely to prevent tampering. Using a portable scanner or a smartphone app like Adobe Scan can help digitize these signatures for record-keeping.

To use physical signatures effectively, ensure you have clear copies of signed documents. Consider combining them with digital records. This approach helps maintain legal validity while improving organization and accessibility.

Electronic signatures (eSignatures)

Electronic signatures, or eSignatures, are digital representations of a person's intent to sign a document electronically. These signatures are legally valid under laws like the U.S. ESIGN Act and the EU’s eIDAS regulation, making them suitable for most business contracts in 2024. Tools such as HelloSign, DocuSign, and PandaDoc enable freelancers and small businesses to collect signatures quickly and securely online.

For instance, a freelance graphic designer can send a contract via HelloSign and receive a signed agreement within minutes, eliminating delays caused by mailing physical copies. ESignatures also provide audit trails, timestamps, and encryption, which increase security and reduce fraud risk compared to scanned signatures.

To implement eSignatures, choose a platform that complies with your industry’s regulations and integrates with your workflow. This will speed up client onboarding and contract management, helping you close deals faster in 2024.

Digital signatures

Digital signatures are a specific type of electronic signature that use encryption technology to verify the signer’s identity and ensure the document hasn’t been altered. Unlike simple eSignatures, digital signatures rely on public key infrastructure (PKI) and certificates issued by trusted authorities. This makes them highly secure and suitable for sensitive contracts, such as legal agreements or financial documents.

For example, a small business owner dealing with confidential client data might use digital signatures through platforms like Adobe Sign or GlobalSign to provide an extra layer of security and compliance. These signatures can also meet strict industry standards like HIPAA or GDPR when handling personal information.

To use digital signatures effectively, consider your document’s security needs and regulatory requirements. Investing in digital signature solutions can protect your business from fraud and legal disputes while streamlining contract execution.

Faxed or scanned signatures

Faxed or scanned signatures involve signing a document physically, then sending it electronically by fax or scanning it to create a digital copy. While common in past decades, this method is less secure and legally robust compared to modern eSignature and digital signature solutions. However, some clients or industries may still accept faxed or scanned signatures in 2024.

For example, a freelancer working with a client who prefers traditional methods might receive a signed contract via email as a scanned PDF. Although convenient, these signatures lack verification features like audit trails, making them more vulnerable to forgery or disputes.

If you use faxed or scanned signatures, keep original physical copies when possible and confirm acceptance with your clients. Transitioning to dedicated eSignature platforms can improve security and efficiency while maintaining legal compliance.

Benefits of legally binding signatures

ensure enforceability in court

Legally binding signatures provide clear proof that all parties agreed to the terms of a contract, making the agreement enforceable in court. Courts recognize these signatures as valid evidence, which helps protect freelancers and small business owners if disputes arise. For example, a signed freelance contract can prevent a client from denying agreed payment terms.

Using digital signature tools like DocuSign or HelloSign ensures that signatures meet legal standards such as the ESIGN Act in the U.S. or eIDAS in the EU. These platforms create audit trails that document when and how the signature was made, strengthening enforceability. This is especially important for contracts involving high-value projects or long-term commitments.

To maximize enforceability, always keep signed documents organized and backed up securely. This creates reliable records that can be quickly accessed if legal questions arise. Taking these steps helps freelancers and small businesses confidently enter agreements knowing their signatures hold legal weight.

reduce disputes and legal risks

Legally binding signatures help reduce misunderstandings and disputes by clearly confirming each party’s consent to contract terms. When all parties sign, it signals that they have reviewed and accepted the obligations, which decreases the chance of disagreements later. This is crucial for freelancers managing multiple clients or projects simultaneously.

For instance, if a client claims they never agreed to a deadline or payment schedule, a signed contract serves as definitive proof. This lowers legal risks by minimizing opportunities for contract breaches or fraudulent claims. Using legally recognized signatures also deters parties from backing out without consequences.

Freelancers and small businesses should ensure contracts are detailed and easy to understand before signing. Combining clear language with legally binding signatures creates a strong defense against costly disputes and preserves professional relationships.

streamline operations and save time

Legally binding signatures streamline business workflows by enabling quick and efficient contract execution. Digital signature platforms allow freelancers and small business owners to send, sign, and return documents within minutes, eliminating delays caused by printing, mailing, or scanning paper contracts.

For example, HelloSign integrates with tools like Google Workspace and Dropbox, making it easy to manage contracts alongside other business files. This reduces administrative overhead and accelerates project kickoffs or payments. Faster contract completion also improves client satisfaction by showing professionalism and responsiveness.

To leverage these benefits, adopt a reliable e-signature solution that complies with 2024 legal standards. Automating contract signing frees up time to focus on core business activities while maintaining legal protection.

increase accessibility and flexibility

Legally binding signatures increase accessibility by allowing contracts to be signed remotely from any device with internet access. This flexibility is vital for freelancers and small businesses working with clients across different locations or time zones. It removes geographical barriers and speeds up agreement finalization.

For instance, a graphic designer in Texas can have a client in New York sign a contract instantly using platforms like Adobe Sign or PandaDoc. These tools support mobile signing, so agreements can be completed on smartphones or tablets, even while on the go. This convenience helps maintain momentum on projects without waiting for in-person meetings.

To take advantage of this flexibility, choose e-signature services that offer multi-device support and comply with local laws such as California’s UETA or the Uniform Electronic Transactions Act. This ensures your signatures remain legally binding regardless of where or how they are signed.

Who needs legal signatures?

Freelancers and independent contractors

Freelancers and independent contractors need legal signatures to formalize agreements with clients. A signed contract protects both parties by clearly outlining project scope, payment terms, and deadlines. Without a legal signature, enforcing these terms can be difficult if disputes arise.

For example, a graphic designer working with a new client should have a signed contract before starting work. Using tools like HelloSign or DocuSign makes it easy to collect legally binding signatures remotely, speeding up the onboarding process. This is especially useful for freelancers working across different states or countries in 2024, where electronic signatures are widely accepted under laws like the ESIGN Act.

To ensure your contracts are enforceable, always include a clear signature section and use a trusted e-signature platform. This reduces risk and builds trust with clients, helping you get paid on time and avoid misunderstandings.

Small business owners and startups

Small business owners and startups rely on legal signatures to validate contracts with vendors, employees, and customers. A signed agreement is crucial for protecting your business interests and complying with legal requirements. Examples of contracts that require signatures to be legally binding include employment contracts, lease agreements, and service contracts.

In 2024, many small businesses use platforms like HelloBonsai or PandaDoc to streamline contract management and collect signatures electronically. These tools help maintain organized records and ensure compliance with state-specific laws, such as California’s strict electronic signature regulations. This is vital for avoiding costly legal disputes down the line.

To get started, identify key documents that require signatures and integrate an e-signature solution into your workflow. This proactive step safeguards your business and simplifies contract execution.

Individuals handling personal legal matters

Individuals involved in personal legal matters need legal signatures to make documents official. These include signing wills, power of attorney forms, and real estate contracts. A legal signature ensures these documents are recognized by courts and other authorities.

For example, when buying a home in 2024, both parties must sign the purchase agreement to confirm the sale. Many states now accept electronic signatures for real estate transactions, provided they meet specific criteria. Using services like Notarize or Adobe Sign can help individuals complete these processes securely and remotely.

Always verify the legal requirements for your state or country before signing personal legal documents electronically. Doing so guarantees your documents hold up in legal situations and protects your rights.

What is a legal electronic signature?

At this point, you might be wondering what exactly is an electronic signature.

According to the ESIGN Act, an electronic signature is:

“An electronic sound, symbol, or process attached to or logically associated with a contract or other record and executed or adopted by a person with the intent to sign the record.”

It's a legally valid method to attain or provide consent on any electronic document. On a fundamental level, an e-signature does the exact same things like a handwritten one in the eyes of the law.

For example, when signing a contract online, a typed signature would represent exactly what it would on a printed contract—that the signer understands and agrees to the terms identified in the contract.

What are the benefits of legal electronic signatures?

Using typed signatures when signing an important business document yields several benefits:

• It significantly speeds up sending documents back and forth and simplifies the process.
• It prevents contract delays and streamlines coordinating signatures.
• It allows administrative tasks to be completed quickly, so both parties can focus on more important tasks.

Typed signatures speed up sending documents and simplify the process. They prevent contract delays and streamline coordinating signatures. This lets you complete administrative tasks quickly so both parties can focus on important work.

Electronic signatures also result in less money being spent on paper, document shipping, and materials, as well as other administrative costs.

One of the biggest benefits of signing electronically is greater location flexibility. Those involved can access, edit, and sign forms anytime, anywhere. As a freelancer, this means you and your client can reach an agreement as soon as possible.

How to sign documents with a legal electronic signature?

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Now you know all about typed signatures, you might be wondering how to sign a contract online?

There are a few different ways to sign with an electronic signature. You can do it with a mouse-click by ticking a box, draw one using a mouse, upload a picture of your handwritten signature, or simply sign a document with a typed name.

Are legal electronic signatures binding?

Yes, electronically typed signatures are legally valid as long as intent and consent are involved.

Electronic signatures are legally valid as they essentially perform the same function as a handwritten signature on a piece of paper.

In this way, electronic signatures carry the same weight as pen-to-paper signatures and can replace them as long as they are legally binding in the country of issue. They must also meet three key conditions to be considered legally valid. Those conditions are:

• Intent to sign
• Consent to do business electronically
• Association of the signature with the record

• The identity of the person signing the document or contract can be verified.
• Their intent to sign the document electronically is clear.
• There are records of the contract kept by both parties for integrity purposes.
  

What is the legal Electronic Signatures in Global and National Commerce Act?

The ESIGN Act is a United States federal law that ensures the legal validity of electronic records and signatures on important documents. Therefore, e-signatures have carried the same legal weight as handwritten signatures since the ESIGN Act was passed in the United States in the year 2000.

How to legally sign documents online with Bonsai

As a freelancer, you're probably wondering how to get started with e-signatures. Tools like Bonsai's online signature maker allows you to type or draw your name to create a legal signature that you can use on important contracts, proposals, and other docs.

If you're a freelancer, you'll benefit from using Bonsai to create a signature in a few minutes and use it to legally mark, consent, and approve a contract and any other agreement with clients. Anything signed with Bonsai's signature tool is legally valid and will hold up in the face of the law.

Bonsai offers a free trial that allows users to create, edit, and esign as many freelance contracts as you like. We've also created a guide on how to digitally sign a PDF to help freelancers who are new to the gig economy.

That's not all that Bonsai offers though. Bonsai is a free unified platform for freelancers that integrates and automates each stage of running a business.

With Bonsai, you can create and customize contracts using one of our free contract templates for any type of freelancer. Choose your template, fill in the project details, and integrate it with your invoices.

Once you're done, you can add your electronically typed signature and send it off to be signed by your client. Download the file as a PDF, attached it to an email, and send it directly to your client. What's more, you can track the whole process from the all-in-one Bonsai app.

That means you can spend less time worrying about administrative tasks, and more time doing what you do best. Start free with Bonsai today and start legally signing important business docs to streamline how you run your freelance business.