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You’ve got yourself a well drafted contract, and you’ve thought through the best process for your clients to agree to your terms (if you haven’t – here’s how). In today’s fast‐paced legal environment in 2025, ensuring your contracts are both efficient and legally binding is more important than ever.
Day-to-day, getting your agreements signed might be taking up lots of unnecessary time.
To combat this, lawyers are continually finding new ways to improve user experience and boost efficiency when it comes to signing contracts – a trend supported by the latest updates in Australian electronic transactions legislation.
Nowadays, for the most part, an electronically signed contract will be valid provided your contract is properly drafted and the person signing has the appropriate authority. Recent regulatory updates in 2025 confirm that digital signatures are generally accepted under the Electronic Transactions Act, offering you a reliable, secure method to finalise deals.
In other words, it’s becoming standard practice to use E-Signatures for most contracts. However, there are several important considerations you’ll have to take into account before deciding if E-Signatures are right for you.
It may be that E-Signatures are not suitable for your business or your clients. In such cases, you can save time by drafting your contract to be signed in separate copies and then swapped – a method known as signing by counterparts. For more on drafting effective counterparts clauses, check out our resources on contract drafting.
As with so much of law, whether you can use an E-Signature depends on what the contract stipulates, the nature of the deal, and the obligations of each party. It’s always wise to double-check with a lawyer and consider the points outlined below.
Is An E-Signature Appropriate For Your Deal?
While E-Signatures have become increasingly mainstream by 2025, they remain a relatively new issue for both the courts and contract users. Their appropriateness depends on the specific circumstances of your deal.
For example, you might want to avoid relying on an E-Signature in situations such as:
- If you have any hesitations about whether the person electronically signing actually has the authority to bind the entity you are contracting with
- If the agreement is a Deed, which requires a witness and must be executed in physical form
- If you’re involved in large transactions with significant risk, where a physical signature might provide extra reassurance
- If you require certainty under sections 127(1) and (3) of the Corporations Act 2010 (Cth) – where traditional physical signatures are deemed necessary to satisfy those statutory requirements
Until these issues are thoroughly tested in the courts and aligned with updated 2025 regulations, if any of the above apply to you, it might be best to use counterparty signing methods to boost your efficiency. If you’re uncertain about authority issues, read on.
Does The Person Signing The Contract Have The Authority To Sign?
A crucial issue-especially when relying on E-Signatures-is ensuring that the person signing your contract actually has the authority to do so.
It isn’t enough that the signature appears genuine; you must verify that the individual signing has the power to bind the entity to the contractual obligations. For example, if the person signing is neither a director nor the sole trader, they should provide a valid power of attorney authorising them to enter into contracts of the relevant value and scope. For additional guidance on verifying authority, you might find our insights on contractor agreements helpful.
Also, check what signature requirements the other party must meet based on their business structure – such as whether their internal policies require two directors to sign, or if a sole director/sole trader signature suffices.
A good way to ensure that your contract is E-Signed by someone with proper authority is to request specific wording in a cover email when the document is returned to you. For example, you could ask that the email include language such as:
“I / We have electronically signed the attached agreement/deed with the intention of entering into a binding contract with you, and I / We represent and warrant that I / We have actual authority to bind the party named in the attached agreement/deed.”
If it isn’t feasible to get direct involvement from the head of the business on a daily basis, ensure you receive a signed copy of the power of attorney if a non-director is signing on their behalf.
How To E-Sign A Contract
If none of the above exceptions apply and you’ve set up a reliable process to verify the identity and authority of the e-signing party, then adopting E-Signing can be a highly efficient solution for your business. The process itself is straightforward!
You can use various platforms to E-Sign a contract, such as PandaDoc. Other popular options include DocuSign and SignRequest. On Windows systems, Microsoft Edge now features built-in E-Signing capabilities – you can find helpful instructions here.
As technology advances, many businesses are integrating secure e-signature solutions directly into their systems. In 2025, these platforms often employ multi-factor authentication and create comprehensive audit trails to ensure your contracts meet the latest legal compliance standards. For more on best practices in contract signing, take a look at our article on how to sign a contract.
Physical Signatures In Counterparts
An alternative to E-Signing your contract is to use physical signatures in counterparts.
To do this, ensure your contract includes a ‘counterparts’ clause, which states that the document may be signed in multiple parts. This clause confirms that the separate signed copies collectively form one binding agreement. For more information on drafting such clauses, you might find our guide on contract drafting invaluable.
You and the other party can each sign your own copy of the agreement on your computers, then swap these copies via email rather than meeting in person. Simply ask the other party to sign, date the agreement, and return their counterpart to you.
Always remember to verify that the person signing – whether electronically or physically – genuinely has the authority to do so.
Even with physical signatures, it remains good practice to confirm the signatory’s authority, ensuring your legal bases are fully covered.
As we step further into 2025, digital transformation in legal processes is accelerating. Many businesses are embracing hybrid models that combine traditional and digital signature methods to suit various transaction types. These advancements not only streamline the contracting process but also enhance security through advanced verification protocols. For more insights on keeping your contracts compliant, read our guide on Intellectual Property and Digital Compliance.
Key Take Away Points
E-Signatures offer a modern, efficient way to execute contracts and have become widely accepted in 2025. However, they should only be used where appropriate for the nature of the deal. Ensuring that the person signing has the proper authority is paramount.
Always include clear provisions in your contract about how it should be accepted, and consider referencing E-Signatures directly. For further detailed guidance on ensuring your contracts are legally binding, view our article on What Makes a Contract Legally Binding.
Sprintlaw’s E-Signature Tool
If you’re on the lookout for an e-signature tool for your business, you’ve come to the right place. Based on extensive client feedback, we developed our very own E-Signature Tool available exclusively as part of our Sprintlaw Membership.
So, what does this mean for you? Using our E-Signature Tool allows you to store all your documents in our secure online portal and send them to your contacts seamlessly. This system lets you track key contracts and details such as signing dates, ensuring that both parties have copies of the final, signed document.
Essentially, our tool helps your business keep on top of your legals by providing an efficient method to send and securely sign documents electronically. You can rest assured that your e-contracts meet the stringent requirements of 2025 – get in touch with our friendly team today to learn more.
Next Steps
If you need assistance determining whether E-Signatures are right for your business contracts, or if you require guidance through the process, we’re here to help!
Get in touch with our team at 1800 730 617 or team@sprintlaw.com.au.
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