This means that if people may have to file a legal document with a government agency, they must receive original signed copies. However, copies by fax or email are acceptable if the reason for creating the document is to enforce a contract. (b) Is the certificate or “electronic signature” accepted as a formal condition of acceptance of a contract? Decades ago, when fax machines and PCs were much rarer, so many jurisdictions (courts) refused to accept fax signatures that very few companies accepted them as acceptable originals. As technology became more mainstream, this rule changed, industry by industry. But it wasn`t until Utah acted (1995) that electronic documents and signatures began to be accepted as authentic. If the only reason for creating the document is the execution of the contract, a copy by fax or e-mail is acceptable. Digital signatures allow borrowers to review, sign, and send documents online, eliminating the need to print the document and add “wet” signatures. Facsimile copies of documents are neither a copy of the original nor the original, so it is not entirely certain whether the faxed documents are legally binding or not.3 min read For government agencies, faxed copies are generally unacceptable when a legal document is to be filed. Indeed, deposit or registration agencies only accept documents containing original signatures. The legality of a faxed document is usually determined by the parties involved in the legal/business transaction. You may decide that a faxed copy of the document is just as legal as the original and serves the same purpose. If a faxed document is legally binding, many entrepreneurs ask the question. Fax machines are widely used means of communication in the legal and commercial sectors.
Facsimile copies of documents are neither a copy of the original nor of the original itself. Therefore, it is not entirely certain whether the faxed documents are legally binding or not. If the validity of the signature is in question, the original document can help verify the correspondence of the faxed or copied signature. However, a copied or faxed signature may not be appropriate in all cases. For example, a registry office or county clerk usually needs original signatures on a lease or deed before they can submit such documents. Electronic signatures, especially those that comply with e-signature laws, have built-in anti-fraud technologies that help protect against the theft, appropriation or misuse of electronic signatures. In some cases, however, faxed or copied signatures are not appropriate – for example, the office of a county registrar or registrar usually requires an original signature on a deed or lease before the same “registration” is filed. Therefore, the only way to create trusted contracts is to use secure digital signatures that include anti-fraud technology components that create complete verifiable leads. The most important question when signing a faxed or scanned document is whether it can be proven that the party who allegedly signed the contract actually signed it. Since the parties were not common when they signed, fraud is slightly more likely than when signing original contracts jointly.
Now that technology has established its future-proofing, the use of electronic documentation has crossed the threshold of legal reliability. There remain questions of proof or evidence that do not lead to the fundamental validity of electronic contract processing. Whether sent using a traditional fax machine or over the Internet, messages are transmitted over a telephone line, meaning that potential criminals would need to know the exact time of a fax message if they were to interfere with its transmission. For this reason, the fax is rightly regarded as one of the most legally concrete documents available to a lawyer. The improbability that a faxed document was forged during its transmission time means that its authenticity is hardly in question. In most states, legal agreements or contracts containing a facsimile or photocopied signature are valid and enforceable. These documents may be used to prove the existence of a contract in administrative proceedings or in court. A common misconception is that only an “original” signature is admissible in court.
However, when it comes to faxed documents, this is not the case. If your business currently relies on traditional technology, now is the perfect time to move to cloud faxing – the modern way of faxing. There are also important differences between electronic records and electronic signatures. While this notice generally applies to electronic documents, much of the advice also applies to signatures. If a legal document is to be filed with a government agency (for any purpose), facsimile copies are generally unacceptable. Most recordkeeping or filing agencies require original signatures on the legal documents they accept. Similarly, in jurisdictions where Cognovits banknotes are valid, the note submitted to the court for judgment must generally include the original signature of the manufacturer of that banknote. Many people still mistakenly believe that only an “original” signature is enforceable. This would require an original of the contract signed by the parties and not a copy, fax or scan of the contract.
However, the rules of evidence have always resolved this issue by criminalizing any party who loses original documents (this is part of the 2010 uproar about mortgage foreclosures by robot-signatories who do not have access to the original documents). Copies of electronic contracts, faxed versions of contracts, and scanned or electronically stored versions are all “good” contracts and enforceable: although they can always be rejected if they prove to be unreliable. Today, contracts are very often executed (or signed) electronically, at least partially, by fax or scanned copy, with a person signing the contract and then transmitting it in one form or another to the other, who then signs it and returns a countersigned version. If you need help finding out if a faxed document is legally binding, you can post your legal need on the UpCounsel marketplace. UpCounsel only accepts the top 5% of lawyers on its website. UpCounsel lawyers come from prestigious law schools such as Yale Law and Harvard Law and typically have 14 years of legal experience, including working on behalf of or with companies such as Airbnb, Menlo Ventures, and Google. Again, electronic records (with the laws of each state) should not be confused with electronic signatures (which vary greatly by industry). There are laws and – often recognized in the contract – private agreements between the parties to allow the electronic signature (e.g. by computer or via the Internet) of many documents. Contractual formalities still need to be completed, as well as certain technical capabilities (e.g. encryption software).
The “real” question is generally not whether a facsimile contract is legal, but fax machines do allow for a number of important processes, including the transmission of legally binding documents that are admissible in court. When the validity of a signature is at stake, the original document may be useful in verifying compliance with the copied or faxed signature. Again, however, the copied or faxed document should be sufficient to prove the existence of a contract. Scanned or faxed copies of originals may not be accepted by certain entities, agencies or institutions. This applies to processes or transcriptions performed by government agencies. A contract or legal agreement that includes a photocopied or faxed signature is considered valid and enforceable in most states.