Legal Understanding and Issues with Electronic Signatures

Abstract

Concerns regarding evidentiary issues and other legal aspects of electronic signatures can be important impediments to the use of electronic signatures in the business community. Three main legal concerns were identified as potential factors that contribute to a reluctance to use the electronic signature technology. Firstly, the analysis identified an ignorance of the law itself to be an important contributor to the non-acceptance of electronic signatures in the business community. The majority of participants said they were unaware of the laws governing electronic signatures in Australia, and the rest had only a superficial knowledge of the provisions. Businesses’ lack of awareness and understanding of the legislation appeared to be largely responsible for their lack of appreciation of the technology. In addition, a failure to understand the legislation could potentially weaken businesses’ confidence in using the technology.