E-signature validity

Are electronic signatures binding? Case law has supported the acceptance of agreements made by electronic signature, as demonstrated in the recent case of Bassano v Toft [2014] EWHC 377 (QB). The case related to a loan agreement contained in a document generated online. The agreement was subject to the Consumer Credit Act 1974 which (among other things) requires the agreement to be signed by both parties. The court had to consider whether the electronic agreement had in fact been ‘signed’ by the borrower for this purpose when he clicked the relevant ‘I accept’ button.

The judge commented: ‘Generally speaking, a signature is the writing or otherwise affixing of a person’s name, or a mark to represent his name, with the intention of authenticating the document as being that of, or binding on, the person whose name is so written or affixed. The signature may be affixed by the name being typed in an electronic communication such as an email.

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