Differences Between a Wet Signature and an E-Signature in England

Business owners sign dozens of documents each year. Sometimes your signature creates an agreement with another party or a promise to carry out a task. Other times you may witness a signature for another. Regardless of what and how you are signing, you may use either a wet signature or an e-signature. This article will examine the differences between using a wet signature and an e-signature when signing documents.    

A Wet Signature

A wet signature is where you make a mark on a physical piece of paper, whether by signing your handwritten signature or stamping the page with a company seal.  

Using handwritten signatures for a company seal on a paper document is still a common method of signing a contract. The phrase takes its meaning from wet ink when using a pen to sign a document. Up until the 1990s, physically signing a document was the primary method. However, technological advancements and covid-associated lockdowns have made e-signatures more common and legally acceptable in certain circumstances.

An E-Signature

The phrase ‘e-signature’ is shorthand for electronic signature. This is the process of digitally signing or writing your name on an electronic document. You will likely have used electronic signatures numerous times when signing your name into a tablet or handheld device. The process can be similar to a wet signature in that you can provide your signature electronically using a stylus or your finger on a digital screen instead of a pen.

Apart from documents that require a physical signature witness, e-signatures can be used for many documents without too much complication.

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Preference for Wet Signatures

Some companies, however, still prefer physical documents and will, therefore, require a wet signature over an e-signature. For example, a business may have a physical filing system, especially for sensitive documents, rather than storing them within a digital system.

Many still see a wet signature as the ‘proper’ way of signing a document. Because of this, it still tends to be used in most circumstances, although it is now more commonplace to sign a document digitally where you cannot do so in person.   

Advantages of an E-Signature

Many businesses plan to go paperless to save costs and limit their environmental impact. Encouraging you to sign your documents with an e-signature avoids printing and sending documents, thereby limiting paper usage and the need for physical space to store papers.

Having your business accept e-signed documents can also help speed up signatures and avoid postal delays and financial costs.

An Example

Imagine you run an advertising agency looking to hire a Swedish content writer due to plans to open an office in Sweden. You hold a virtual interview with a strong candidate and then offer them the job by email, which they accept by return email.

You want them to start as soon as possible. Your business has two choices: 

• it can print a contract and post it to the new starter’s home address in Sweden which will cost you a decent postal charge and take days or weeks to deliver and return; or 
• email a digital copy to them to e-sign, which could be completed within 48 hours. 

This speed and convenience, particularly in a world that has changed its business practices following the Covid-19 pandemic, can make e-signature a viable option for your business. This is especially the case where deals occur remotely or online and with documents for staff members who work from home and do not attend the workplace.

Key Takeaways

There will be many times when you, as a business owner, must sign your signature, such as when concluding a contract. You can sign documents with either a wet ink signature or e-signature, but there are somewhere a wet signature will be more suitable. However, an e-signature will be suitable for some documents, particularly electronic or required for ease and speed.

If you need help signing contracts, our experienced commercial contract lawyers can assist as part of our LegalVision membership.  For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents.  Call us today on 0808 196 8584 or visit our membership page.

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