Knowledge Base

What is an electronic signature?
Are eSignatures legally binding?
What are the benefits of the eSignatures feature for my sales team?
What is the Reasonable Use Policy?

eSignatures FAQ

Jenny Takahara, January 23, 2024
Note: The Smart Docs feature is included on the Professional, Power and Enterprise plans and is available for the Essential and Advanced plans as an add-on. Only users with account settings access are able to purchase the add-on for the company account. The add-on comes with a 14-day free trial during which you’ll have five signatures available (billing details required). Learn more about the terms and conditions of the add-on from this page.

What is an electronic signature?

The US Federal ESIGN Act defines an "electronic signature" as an electronic sound, symbol, or process, attached to or logically associated with a contract or other record and executed or adopted by a person with the intent to sign the record.

Electronic signatures have been used for electronically signing offer letters, sales contracts, permission slips, rental/lease agreements, liability waivers, financial documents, etc.

An electronic signature, as defined under the European Union eIDAS act (No 910/2014 on electronic identification and trust services for electronic transactions in the internal market), covers the broad category of all electronic signatures, including "data in electronic form which is attached to or logically associated with other data in electronic form and which is used by the signatory to sign".

The basic digital signature offered by Pipedrive's eSignature feature represents a subtype of the electronic signature with some advanced security characteristics.

A basic digital signature uses PKI (Public Key Infrastructure). Crucial characteristics of the basic electronic signature are the following:

  • Digital certificate issued by a third party (Ensured)

  • Asymmetric or public-key encryption

  • IP Address capture

With Pipedrive’s e-signatures feature, signers can receive a one-time authentication code to check, but not guarantee, their email validity. This is an optional security feature that can be enabled or disabled for each signature request.

Are eSignatures legally binding?

Electronic signatures acceptance and use in many countries around the world have been widespread for years. However, please check the legislation in your country as to their legality and enforceability.

What are the benefits of the eSignatures feature for my sales team?

With the eSignatures feature, you can easily replicate the success of your existing tools (e.g., top business cloud storage solutions like Google Drive, Microsoft OneDrive, or SharePoint) or digitalize the processes that are especially relevant for teams that have to stay away from physical offices due to restrictions.

The eSignatures feature may allow your team to focus more on sales and stop worrying about whether customers have printing equipment or not at their disposal.

Storing the signed document in a deal will make it easier for the deal owner and followers to access it quickly.

What is the Reasonable Use Policy?

Pipedrive will closely monitor the usage of eSignatures. If we notice that the feature is being used for reselling, being abused in any other way, or is unduly burdensome, we reserve the right in our sole discretion to prevent or suspend a user's access to the feature.

This article is for information purposes only and should not be construed as legal interpretation or advice. Please consult a suitably qualified professional for legal advice and/ or always refer to laws in your jurisdiction regarding your specific electronic signature use case.

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