7 Perks of E-signature Software for Legal Departments

E-signature software has been growing steadily since its inception. However, the COVID-19 pandemic sent it into overdrive, making it increasingly important for businesses to shift their operations so they could stay afloat.

According to recent market research, there is a projection that the electronic signature market size will increase astronomically by 2030, resulting in about $42 billion market size. 

In all of this increase and boom, the legal departments and firms stand solidly as one of the highest benefactors of this innovation. We’d explain further in the latter parts of this article. So read on to learn the perks of e-signature software for legal departments.

What is E-signature Software?

E-signature Software

E-signature software is a digital solution that allows businesses, corporations, and individuals to send and receive legally binding signatures over an electronic medium and automate other repetitive tasks. 

The primary essence of the software is that it removes the need to be physically present before you send or receive a signed document.

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Like most corporate organizations, legal firms and departments use e-signature software. The regulation of this technological innovation varies from country to country.

For example, the use of e-signature tools is regulated by a body known as eIDAS in Europe. The body stands for Electronic Identification and Trust Services, and it provides a structured and regulated process for the use of e-signature software for legal departments and other entities that require them in Europe. 

Apart from eIDAS, there is also the Uniform Electronic Transactions Act, which establishes the equivalence of electronically signed documents to the same legal status as that of the physically signed document. There are many stipulations that regulate the use of electronically signed documents in the corporate and legal world. 

An example of this stipulation is that an electronically signed document is considered sent when the recipient reads it. 

Finally, the Electronic Signature in Global and National Commerce Act protects and legalizes the use of electronic signatures in business transactions in the US. All of these legislations laws are used to make sure that the use of advanced electronic signatures in business and corporate dealings is regulated by the law, which helps to avoid fraud, no 

E-signature software can be used to append signatures on paperwork, no doubt. But does the software work on all types of documents? Better put, should you use electronic signatures on all types of documents? 

The following are some of the documents on which you can use e-signature software in legal departments and firms; 

Commercial Contracts

Commercial Contracts

According to law, signatures are an important part of a contract. They validate a contract following that they signify that all parties involved in the contract accept the terms, obligations, and responsibilities as stipulated by the contract. 

In contracts involving businesses, corporate bodies, and companies, you can use electronic signatures to validate documents containing contracts between the different parties involved. 

You can also use collaboration software to ensure that all the parties involved are on the same page. 

Human Resource Documents

Another aspect of the corporate world that handles a lot of documents is the human resource department. This department oversees employees’ recruitment, training, promotion, and sacking. Therefore, it uses many documents that have high legal value. 

The e-signature software can also be used to validate new job offers and employment letters. It can be used in conjunction with HR software to approve training, refresher courses, or any form of communication with the employee in the company. 

Corporate Reporting

Corporate reporting is an area that requires duly signed documents. It could be the minutes of a meeting, a report on a research or study, a market survey, and any form of documents used to report an event or occurrence in the corporate space. 

External Transactions

Sometimes, there could be a valid need to purchase items from an external seller for the benefit of a business or corporation. Electronic signatures also come into play if the seller is not within the vicinity of the business. 

With e-signature software, businesses can sanction legitimate business transactions regardless of the distance between the selling party and the buyer. 

The seven benefits of using e-signature software in law firms and legal departments include the following;

Reduced Hassles of Paperwork

We’ve established that legal departments handle all sorts of paperwork, from contracts to agreements and approvals that require signatures. Oftentimes, these documents require multiple signatures from different people.

These processes can wear one out, delay workflow, and reduce overall turnover time, especially if you have to get approvals from outside parties or individuals who are not in the office at the same time as other team members. 

And when you use other methods such as fax or in-person to obtain signatures from them, it could take between 2 to 6 days, or even more, depending on the number of parties involved. 

However, with e-signature software, your clients and employees can sign electronically, making it easier to get everyone on board quickly, saving you the stress of handling excessive paperwork. 

Time-Saving and Error-Free

Instead of the legal team waiting for employees and clients to return signed documents from home or other locations outside the office, you can have them electronically sign the documents from their desktops. Some e-signature solutions, such as Adobe Sign, even allow users to scan documents into PDF format directly from their phones. 

E-signature software also eliminates errors associated with manually filling out forms and sending them via email or fax. This can help prevent costly litigation over miscommunications or missed deadlines due to incorrect information in a document sent by a third party who was not authorized to sign on behalf of the company or individual.

Ensuring Compliance

One of the important aspects of legal and business dealing is compliance. It involves ensuring that business entities adhere to certain dictates and stipulations by relevant authorities within the law. 

Suppose, at any point, an audit is carried out, and the legal department or the business it represents is lacking in the area of compliance. In that case, this could result in serious legal trouble for the party involved. 

To avoid this legal trouble, it is important that you follow compliance. One of the ways of ensuring compliance is doing due diligence in handling your files and documents. With e-signature software, you get to keep these files and documents in conformity with federal and state laws while also ensuring that these documents are safe. Just like hand-written signatures, e-signatures are legal and widely accepted.

Saves Money

We have mentioned how the use of electronic signatures helps you save time and money in a legal department. 

Firstly, you get to save up on the cost of buying papers and ink used on the conventional method for preparing documents. While it may not seem like a lot, the amount of money that goes into buying and using paper and ink is not small, especially in legal departments that handle lots of documentation. 

The same thing goes for the cost of printing, faxing, scanning, and other activities that go into the handling of documents. Or the cost of maintaining machinery used to print or fax. 

Also, apart from saving money from the cost of paper and ink, the cost involved in in-person signing is eliminated and reduced to the barest minimum. This is because the parties involved in signing the documents do not need to be physically present. They also do not need to leave their location to get the documents signed. 

Therefore, electronic signatures help businesses and legal departments save money. E-signature tools like DocuSign and signNow airSlate even offer a 30-day free trial before paying. 

Helps the Environment

Electronic signature software has a positive effect on the environment and the green life around us. First, it reduces the amount of fossil fuels used when you use electronic signatures. The reduction in the quantity of fossil fuel used is good for the environment. 

Also, the number of trees that get cut down to make paper is reduced when you use electronic signatures. This is because the use of paper for documentation is reduced, and as such, the demand for paper also reduces. Thus, with the digitalization provided by the use of e-signature software, you get to reduce the operational processes that hurt the environment and the green life around us. 

Quicker and Seamless Signing Process

As the world becomes more and more digital, it’s ironic that some law firms are still using paper methods to get their work done. The process of signing documents is made much easier with the help of e-signature software. 

When you attach a signature pad to your computer, all you need to do is make a mark on the document in question, and it will be converted into an electronic signature that can then be used for future purposes.

For example, PandaDoc has a ‘legally binding e-signature’ feature that enables users to remotely get their clients’ signatures. HR and Legal teams can also automate document approval using the ‘approval workflow’ feature.

Better Security for Documents

Better Security for Documents

Legal departments inarguably handle a lot of confidential files and documents. These documents may not only contain sensitive data, but they may also contain information that affects the profitability of a company. Therefore, there is a need to keep these documents safe and secure. 

With the conventional way of handling documents, it is easy for unauthorized people to access these types of documents. All they have to do is find a way to circumvent any weak protective measures. 

This is where e-sign software like Formstack Sign comes in. This software not only allows you to sign documents electronically, but it also offers one of the highest levels of security and encryption for documents. This e-signature tool works similarly to DocuSign which requires that the email recipient verifies their identity to access the document. Thus, your confidential documents are safe from unauthorized users and prying eyes. 

Eversign, on the other hand, also offers one of the highest levels of security and integration with other apps. Its ‘document management & security’ feature enables users to store documents in their accounts securely. The ‘audit trail’ tracks transactions and activities in an account and reports any alterations, forgery, and tampering.

Levels of Security in Electronic Signature

There are four different levels of security that businesses and individuals using electronic signatures should know and bear in mind. These levels of security are as follows; 

Level 1 Electronic Signature

This type of signature concerns health, car, and home insurance documents. With this type of document, there is a need for a two-step verification system that ascertains that the document originates from the actual source. An example of this verification system could be a text message with a code. 

Level 2 Electronic Signature

The level 2 electronic signature applies when there are more parties involved. The more parties involved, the higher the need for security and a way to control the use of electronic signatures on documents. In this level of security, there is a need for identity confirmation and a photocopy of the legal documentation. 

Level 3 Electronic Signature

This type of signature is very similar to that of level 2. The only difference between the two levels is the use of signed qualified certificates used in this level. 

Level 4 Electronic Signature

This is the highest level of security and is used in signing legal contracts or subscriptions to any policy. This is because, at this stage, the data is sensitive, and the repercussions of these signatures are severe. In this case, the action is to create a lasting signature pattern or certificate. 


Handling office files and documents is one of the basic and everyday activities in a legal department. However, with e-signature software, you can manage these documents better and provide a secure, safe and ideal approach to getting these documents signed. 

This article reviewed the benefits a legal department can enjoy from using e-signature software.