Being able to send video proposal to your client for an e-signature enables you to close a deal like a breeze.
What is the difference between contract and proposal?
A contract is a binding agreement as well as a legal document between you and your client. A contract must contain four elements to be enforceable:
1. Offer – One of the parties made a promise to do or refrain from doing some specified action in the future.
2. Consideration – Something of value was promised in exchange for the specified action or non-action.
3. Acceptance – The offer was accepted unambiguously.
4. Mutuality – The contracting parties understood and agreed to the basic substance and terms of the contract.
To be enforceable, the Offer and Acceptance must be in writing and signed by the parties agreeing to the contract.
Note: When you are dealing with the transfer or sale of real estate property, all 4 elements above must be in writing.
What is a proposal?
A proposal is a statement of the work or tasks you are offering to perform.
By accepting your proposal, in whatever form you have agreed upon, the client enters into a binding contract with you.
While it is common for both parties to sign the contract, the client can accept your proposal and enter into a legal contract by simply paying you a deposit (the legal term for that is consideration).
Is Proposal a Contract?
A signed proposal is just as legally valid as a signed contract provided that it clearly states your offer and accepted by your client either in writing, via signature, or payment. If you have specific terms you want in your agreement, you can include those directly in your proposal.
You can include a signature area at the bottom of your proposal, preceded by a line saying that by signing the proposal the client is agreeing to the terms within. There is no need to give the client a contract in addition to a proposal. All you need to do is include a signature section at the end of your proposal.
What are electronic signatures and digital signatures?
Digital signature and electronic signature are not the same thing.
They are a subset of e-signatures that has an additional signer authentication element as a proof of who actually has signed the document. Digital signatures include a “digital certificate” that is issued only when the identity of the signer is validated. Public key encryption is used to associate the signer’s identity with a document.
Electronic signatures (e-signatures), on the other hand, cover the full range of technologies and solutions to create signatures electronically. A variety of capture methods can be used, such as:
- Typing your name in a signature box
- A scanned image of the person’s ink signature
- Signing your name on a courier’s digital device
- Using one of the e-signature solutions like Docusign
Are Electronic Signatures Legal?
E-signatures are used in many countries around the world for years.
However, are electronic signatures legal?
The short answer is yes. Electronic signatures are legal.
Can an e-signature create a binding and enforceable contract?
Again, the short answer is yes.
What makes an electronic signature legally binding?
In the U.S. and other industrialized countries, electronic signatures and records can carry the same weight and legal effect as traditional handwritten signatures and paper documents.
The Electronic Signatures in Global and National Commerce Act (ESIGN) and the Uniform Electronic Transactions Act (UETA) in the United States, the Electronic Identification and Trust Services Regulation (eIDAS) in the European Union and other similar laws throughout the world were enacted to recognize the enforceability of e-signatures.
Are electronic signatures valid in all states?
Yes, electronic signatures are valid in all U.S. states and are granted the same legal status as handwritten signatures under state laws. Only three states (New York, Illinois and Washington) maintain their own independently developed laws, but all of them are consistent with UETA.
Is an electronic signature as legal as a paper signature?
Yes! Electronic signatures are federally protected by the ESIGN Act of 2000. They are also protected on a statewide basis by the UETA Act. Internationally, eSignatures are protected by various acts and legislations.
Can legal documents be signed electronically?
Electronic documents and signatures are broadly enforceable for business and personal transactions in industrialized countries around the world. Many court filings can also be signed electronically. However, there are some use cases that are not typically appropriate for e-signature and you should seek legal advice.
Our software can create and send proposals to your clients for e-signature. You can even add a video in the proposal to further clarify details of the proposal.
For more details, please contact us via our contact form or email us at email@example.com