Nelson Mullins Encompass


Implementation and Use of Electronic Contracts

September 1, 2013

ACC Docket Magazine

Reprinted with permission of the Association of Corporate Counsel

As the use of electronic contracts has boomed, there has been a shift from simply knowing whether the electronic signature is enforceable, to knowing if the documents generated create sufficient evidence to survive a court challenge. The following variables may impact the reliability and intergrity of electronic evidence: workflow used for document creation and distribution; ability to demonstrate the intergrity of the process; ability to provide an audit trail; and ability to access relevant evidence. When a company is ready to move forward with an electronic contracting process, the formal acceptance of electronic signature and related transactions can be complex and controversial. The electronic signature policy is a living document and must be modified and updated.