14.03.2022

Author: Geraldine Critchley

Use cases of electronic signature

Without contracts, it is impossible to imagine the professional world because no business can be concluded. Traditional paper-based workflows can unnecessarily slow down contract processes and tie up additional human staff. That's why more and more companies are switching to automating and digitizing these contract procedures because it saves time, costs, and nerves. Moreover, they can be implemented and standardized in almost all business areas.

1. Purchase contracts

Purchase contracts involve a company's departments (e.g., purchasing, administration, or sales) and must be concluded between at least two contracting parties.

The traditional contract signing takes a long time and is only legally valid once all contracting parties have signed. Thanks to the EU regulation eIDAS, you can sign purchase contracts electronically in a lawfully valid manner in the European area.

2. Employment contracts

A company and an employee can only work with employment contracts. From job advertisements and applications to interviews and onboarding, numerous documents are implicit in the contractual process. The employment contract itself regulates working hours, rights, duties, responsibilities, and the duration of the contract. Nowadays, you can sign employment contracts electronically more quickly and easily, which offers clear advantages over the competition in a highly competitive labor market.

Concluding employment contracts with an electronic signature

3. Declaration of acceptance

Declarations of acceptance precede a large number of contracts. It is a declaration of intent that needs to be received and includes the unconditional "Yes, I do" in response to an application or an offer. A declaration of acceptance ensures that the contracting parties accept the services or performances stipulated during the contract negotiations. Only when both contracting parties receive a signed statement of approval can a legally valid contract be concluded. This contracting process can be accelerated and digitized with a legally valid electronic signature.

4. Non-disclosure agreements (NDAs)

For most companies active in highly regulated markets, non-disclosure agreements are part of their daily business. The digitization and electronic signature on these NDAs are worthwhile because they are always standardized. Doing this without paper, printer, pen, and scanner is enormously helpful. With an electronic signature solution, you can conclude these agreements quickly, easily, conclusively, and legally binding.

5. Financial documents

Especially in the banking and financial sector, responsible employees win when they offer their customers a more digital customer journey. For example, when signing paper-based financial products and documents, processes can durate. Financial services and documents signed electronically can increase customer satisfaction.

signing financial dokuments with an electronic signature

6. Tenders

Tenders are used to generate offers for your company from suppliers and partners that you need for an assignment. Such a tender is already part of the contract process, contains contract terms, and describes the bidding process and other important information. Such tenders often require a signature, which is also a possible application for an electronic signature.

7. Framework agreements

Framework agreements are significant for B2B companies. In a standard contract, they seal the most critical service parameters and open-ended customer relationships. They usually contain general terms and conditions on billing, payment transactions, dispute resolution, and intellectual property. With an electronic signature, a framework agreement can be concluded in a legally binding, evidentiary, and uncomplicated manner.

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8. Supplier contracts

A company's purchasing and sales activities depend, to a large extent, on its relationships with external suppliers. General conditions and delivery dates are regulated in supplier contracts. The conclusion of such agreements is often complex and ties up time and human resources. Speed up the signing of supplier contracts with electronic signature solutions. This way, documents can be sent quickly, securely, and simultaneously signed.

9. Rental agreements

Not only since Covid-19 has the real estate industry benefited from digitalization. For example, rental contracts (both fixed-term and open-ended) can also be legally signed electronically. This includes rental agreements for residential, commercial, or office space.

Electronic signature on digital rentale contracts

10. Purchase orders

Among other things, purchase orders belong to sales contracts but can also be concluded informally. In B2B sales, for example, orders can be accelerated enormously using digital documents and contract management. This offers immense advantages over the competition.

11. Invoice processing

When companies switch to electronic signature solutions, this also offers the advantage of processing associated contract documents or resulting invoices in a corresponding software. Automatic reminders of deadlines for processing or issuing invoices create excellent security.

12. Petitions

Petitions have become an indispensable part of the internet. They can also be easily signed electronically and then forwarded quickly and securely to the relevant institution or authority. With an electronic signature solution, you increase the reach of your petition enormously.