7 Common E-Signature Mistakes That Could Invalidate Your Contracts

When E-Signatures Go Wrong

Electronic signatures are legally valid and widely accepted—but only when implemented correctly. Simple oversights can undermine your documents' legal standing.

Learn from these common mistakes so you don't have to learn the hard way.

Mistake #1: Skipping Consent

The Problem: Sending documents for electronic signature without confirming the signer agrees to use e-signatures.

Why It Matters: Laws like ESIGN Act and UETA require consent to conduct business electronically. Without documented consent, a signer could later claim they never agreed to electronic processes.

The Fix:

• Include a clear consent statement before signing
• Record acceptance of electronic signature terms
• Offer paper alternatives when required

Example Consent Language:

"By clicking 'Sign,' you agree to sign this document electronically and acknowledge this signature is legally binding."

Mistake #2: Inadequate Identity Verification

The Problem: Allowing anyone with a link to sign without verifying they're the intended signer.

Why It Matters: If you can't prove the right person signed, the signature's validity is questionable.

The Fix:

• Require email verification at minimum
• Add SMS verification for sensitive documents
• Consider knowledge-based authentication for high-value contracts
• Implement ID verification for maximum security

Mistake #3: Missing Audit Trail

The Problem: Using simple "insert signature image" methods without tracking who signed, when, and how.

Why It Matters: In disputes, you need evidence showing the signature is authentic and the process was proper.

The Fix:

• Use platforms that automatically capture:
• IP addresses
• Timestamps
• Device information
• Signature method
• Document hash values
• Store audit certificates with signed documents

Mistake #4: Ignoring Document-Specific Requirements

The Problem: Assuming all documents can be signed electronically.

Why It Matters: Some documents legally require wet signatures or additional formalities.

Documents Often Excluded:

• Wills and codicils
• Trusts (in many jurisdictions)
• Powers of attorney (varies by state)
• Real estate deeds (some states)
• Court documents
• Notarized documents (without remote notarization)

The Fix:

• Research requirements for your specific document types
• Consult legal counsel for regulated industries
• When in doubt, use traditional methods

Mistake #5: Poor Document Integrity

The Problem: Using methods that allow document modification after signing.

Why It Matters: If a document can be altered post-signature without detection, its evidentiary value is compromised.

Red Flags:

• Editable PDFs after signing
• No tamper-evident sealing
• Signature as separate image file
• No document hash recorded

The Fix:

• Use platforms that seal documents upon completion
• Implement hash verification
• Store original and signed versions separately
• Use digital certificates for critical documents

Mistake #6: Incomplete Signature Process

The Problem: Signers who "sign" by viewing but not actually completing all required fields.

Why It Matters: Partial completion may not constitute a valid signature, especially if key terms aren't acknowledged.

Common Issues:

• Unsigned pages in multi-page documents
• Missing initials on important clauses
• Date fields left blank
• Required checkboxes unchecked

The Fix:

• Configure mandatory fields
• Use completion validation before submission
• Include signing progress indicators
• Send incomplete documents back for completion

Mistake #7: Inadequate Record Retention

The Problem: Losing access to signed documents or their associated proof.

Why It Matters: You may need to produce signed documents years later for legal, tax, or audit purposes.

Retention Failures:

• Relying solely on email attachments
• Using free tools that delete old documents
• No backup strategy
• Expired platform subscriptions

The Fix:

• Export signed documents to permanent storage
• Download audit certificates separately
• Implement automated backup procedures
• Know your retention requirements (often 7+ years)

Bonus: Industry-Specific Pitfalls

Healthcare

• Missing HIPAA business associate agreements
• Inadequate patient identity verification
• No proper authorization for protected health information

Financial Services

• Insufficient disclosures before signing
• Missing required cooling-off period notifications
• Inadequate documentation for regulated products

Real Estate

• State-specific witnessing requirements ignored
• Missing required disclosures
• Improper handling of wet-signature-only documents

Self-Assessment Checklist

Review your e-signature process:

• [ ] Do you obtain clear consent for electronic signing?
• [ ] Is signer identity verified appropriately?
• [ ] Are comprehensive audit trails captured?
• [ ] Do you know which documents require wet signatures?
• [ ] Are signed documents tamper-evident?
• [ ] Is the signing process impossible to partially complete?
• [ ] Do you have reliable, long-term storage?

When Mistakes Happen

If you discover a signature problem:

• Don't panic: Most issues are correctable
• Assess impact: Determine which documents are affected
• Re-execute if possible: Get fresh signatures with proper process
• Document the fix: Keep records of the correction
• Update procedures: Prevent recurrence

Prevention Is Better Than Cure

The best approach is getting it right from the start:

• Choose reputable e-signature platforms
• Configure proper workflows
• Train all users on requirements
• Audit your processes periodically
• Stay current on legal requirements

Your signatures are only as strong as your process. Build it right.