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Posts Tagged ‘enforceable agreement’

Hollywood Gets Electronic Signatures Wrong

Thursday, April 2nd, 2009

I had the chance to watch the latest episode of 24 last night (thanks to hulu.com).  In the episode one of the bad guys offers to show where a biological weapon is in exchange for immunity and the President agrees to the deal.  Since they have no time to waste they decide to have the President sign the immunity order online!

You can imagine how interested I am to see how Hollywood, with all of its imagination and creativity, gets a document signed online.  Drum roll please….

Hollywood’s answer to getting an important document signed is… to have a Webex session where they share the immunity order online and then have the President sign it  ”digitally”.  The President signs it using one of those signature pads that you sign at the grocery store.  How disappointing.

Here is where Hollywood got it wrong.

1. Urgency - If you have someone on the phone and need to get an agreement signed quickly DON’T make them go find a computer with an internet connection for a Webex session.  Use a voice signature with the person on the phone to get the document signed.   It is faster and ESIGN compliant. 

2. Digital vs. Electronic - The President signed the immunity agreement with an electronic signature, not a digital signature as they stated.  We can get into the differences between the two another time.

3. ESIGN Compliance - One of the requirements to be ESIGN compliant is that all parties have to be provided with a copy of or have access to the signed agreement.  It didn’t look like that was the case here.

I am sure Webex paid a lot of money for its product placement in the episode.  Too bad that it was a 2nd rate solution.  

If you need to get an agreement signed and you have your customer on the phone, use ContractPal’s voice signatures to save time and hassle.

Paper is “easier and safer” than electronic signatures…. NOT!

Monday, March 16th, 2009

HRTechNews.com has a post on their blog today that reminded me that I have lots of work to do in converting the masses to the better life of electronic signatures and online agreements.

The blog recounts the case of Kerr vs. Dillard Store Services, Inc.   In this case the company argued that the employee had signed an agreement to arbitrate discrimination claims.  The company used their own email and intranet system to post the agreement and capture the employee’s electronic signature.

But the employee successfully argued that she had not signed the agreement.  She said that her manager, who had reset her password, signed it.  The company admitted that was possible and the judge agreed with the employee.

So, what is the lesson learned from this?  HRTechNews stated that “In most cases, it’s easier and safer to have legal documents signed on physical paper.”

What???!

Using online forms and electronic signatures is not only easier and safer than paper but it typically costs 50% less AND provides a better user experience!

The lesson that should be learned here is that if you are taking your forms and agreements online, and you should be, make sure that you are tapping into expertise that will ensure your electronic signatures are enforceable.