Hey all! Can I pick your brains about digital signatures, please?
Usually I send the letter of engagement by email and ask the client to print, sign and post it back to me, so that I have an original signature on file.
I have a new client who went out of the country the day after hiring me, for a long holiday - without telling me! He wants to provide a digital signature on the letter of engagement. The signature doesn't look like how he would sign his credit card. Is this acceptable on a letter of engagement?
Thanks in advance!
-- Edited by FoxAccountancyServices on Wednesday 22nd of January 2014 08:58:49 AM
There are few foreign countries that do not have a postal system ...
A digital signature requires knowledge of whatever encryption method is used when the digitally signed document is sent so that you can decrypt it upon receipt.
If you mean a digital image (ie, a scan of a handwritten signature), then that may be no more genuine than the handwritten signature on an original document. It's up to you if you want to accept it, bearing in mind you might face a future objection that, because you don't have the original document, the client can't be bound by it. Against that, (a) most contracts don't need to be signed and (b) if you have an email from the client's email address agreeing to your terms, then it will be presumed to be binding unless he claims he did not send or permit it to be sent.
On balance, I would accept it. After all, you consider yourself bound by the email you send, even though the client does not have your original signature. However, I would also ask for the original to follow in the post asap
The signature came through on Echo Sign which I think is linked with Adobe? Its just the sole trader business name in capital letters... Didnt know I had to encrypt it though, will look at that tomorrow!
To be fair, an X or signed off as mickey mouse is just as legally binding as their usual signature, aslong as they have actually provided the signature.
__________________
Johnny - Owner of an overly-active keyboard.
A man who can read, yet doesn't, is in no way wiser than a man who can't.
I was worried my insurance would be invalid if the signature didn't at least appear to be legitimate. They haven't provided the signature they would sign the back of their credit card with - just the name of their business in capitals - but AAT says this is fine
We use echosign and I think it's worth every penny. We send all of our letters of engagement, tax returns etc through it and the savings in terms of time, printing and postage outweigh the cost.
I use Hellosign which is similar, and it's great at this time of year for signing off final accounts and self assessments. These are covered by the electronic communication act 2000. The price is the same at $15 per month.
Kris
-- Edited by kjmcculloch83 on Thursday 23rd of January 2014 07:42:32 AM
I think you can do 5 documents per month without a fee, but any more than that and you have to pay. From what I can remember from when we trialled it, you get the full functionality of it all when you have the free version, it's simply the limitation on the number of documents that can be sent for signature.
