What are "wet ink" and "electronic signatures"?
“Wet ink signature”, in relation to entering into a contract, refers to the
practise of each party firstly preparing two paper copies of a document
each containing all of the terms to be agreed, secondly, signing both
copies using “wet ink” hand-written signatures, and, finally, adding the
date. The result is two identical originals of a contract. Each party keeps
one copy. Sometimes instead, each party signs one original, the other signs
the other original, and they date and give their original copy to the other
party (“exchange of contracts”). In each case a contract comes into
existence at that point.
It is now also common practice for an “electronic signature” to be used in
a range of commercial contracts and other transactions, and this trend is
likely to continue. For example, it might consist of a party’s name typed
into a contract or email containing the contract terms, or a scanned image
of a signature in a contract signature block, or a name inserted in a
document using a web-based e-signature platform, or use of a tablet to add
a name in the contract using a finger or e-pen.
The relevant law recognises that if an electronic signature is intended to
render a party bound by the document in question, it has the same legal
status as a wet-ink signature.
The Guidance Note: Electronic Signature of Deeds and Contracts expands on
what is meant by “electronic signatures” and how they can be used. It also
explains what is meant in law by the expressions “signature”, “in writing”
and “under hand”.