Are Electronic Signatures Legal for Contracts and Estimates? (US and Canada)

Short answer: Yes, for most business documents. In the United States, the federal ESIGN Act says a contract or signature cannot be denied legal effect just because it is electronic. In Canada, federal and provincial laws, such as Ontario's Electronic Commerce Act, 2000, say the same thing in their own words. Estimates, quotes, work orders, service agreements and change orders can usually be signed online. A short list of documents, such as wills and some powers of attorney, still needs special handling. This is general information, not legal advice.

Key points

• In the US, the ESIGN Act (15 U.S.C. 7001) says a signature, contract or record "may not be denied legal effect, validity, or enforceability solely because it is in electronic form". In addition, 49 states have adopted the Uniform Electronic Transactions Act (UETA).
• In Canada, each province has its own electronic commerce law. Ontario's says an electronic signature is the functional equivalent of an original signature, with some exclusions.
• Both countries exclude certain documents, such as wills. The exact lists differ.
• "Legal" is not the same as "easy to prove". What makes an e-signature hold up is evidence: who signed, when, what they saw, and that the document was not changed afterwards.
• An e-signature does not remove other rules. Consumer protection laws on estimates, cancellation rights and written contracts still apply.
• A good e-signature tool records an audit trail and gives every signer a copy of the signed document.

By Gravun Team · Published October 16, 2026 · Last updated October 16, 2026.

What is an electronic signature?

An electronic signature is any electronic way of showing that a person agrees to a document. It does not have to look like a handwritten signature.

All of these can be electronic signatures:

• Typing your name into a signature box.
• Drawing your signature with a finger on a phone screen.
• Clicking an "I accept" or "Approve estimate" button.
• Checking a box that says "I agree to these terms" and pressing Sign.

The US ESIGN Act defines an electronic signature as an "electronic sound, symbol, or process, attached to or logically associated with a contract or other record" and executed or adopted by a person with the intent to sign it. Ontario's Electronic Commerce Act, 2000 describes it as electronic information that a person creates or adopts in order to sign a document. In both cases, intent is the heart of it. The person must mean to sign.

Electronic signature vs digital signature

People often mix up the two terms.

For a small business sending estimates, service agreements and change orders, a standard electronic signature with a good audit trail is normally what you need.

Are electronic signatures legal in the United States?

Yes. Two laws work together.

The ESIGN Act (federal, 2000). It covers transactions in or affecting interstate or foreign commerce. Its core rule is in section 7001(a):

• A signature, contract or other record "may not be denied legal effect, validity, or enforceability solely because it is in electronic form".
• A contract "may not be denied legal effect, validity, or enforceability solely because an electronic signature or electronic record was used in its formation".

The Uniform Electronic Transactions Act (UETA, state level). UETA is a model law that 49 states, plus the District of Columbia, have adopted in their own statutes. The New York City Bar describes New York as the only state without a version of UETA; it relies on its own Electronic Signatures and Records Act (ESRA) instead. The practical result is similar across the country: electronic signatures are valid for most business transactions.

Consumer disclosures

ESIGN adds an extra step when another law requires that information be given to a consumer "in writing". In that case, an electronic record satisfies the requirement only if the consumer agreed to receive electronic records first, after being told about their right to paper copies, their right to withdraw consent, and the hardware and software needed. The consumer must also confirm electronically that they can open the format being used.

For a typical estimate or service agreement that is not legally required to be "in writing", this step may not apply. But many e-signature tools show a short consent screen anyway. It costs the signer one click and removes a possible argument later.

What ESIGN does not cover

Section 7003 lists documents that ESIGN does not apply to. They include:

• Wills, codicils and testamentary trusts.
• Adoption, divorce and other family law matters.
• Most of the Uniform Commercial Code, with some exceptions.
• Court orders, notices and official court documents.
• Notices that utility service (water, heat, power) is being cut off.
• Notices of default, foreclosure, repossession or eviction for a person's main home.
• Notices that health or life insurance is being cancelled.
• Product recall notices for safety risks.
• Documents that must travel with hazardous materials.

Other laws may still allow some of these to be electronic. The point is that ESIGN itself does not make them valid.

Are electronic signatures legal in Canada?

Yes, for most business documents. Canada handles it at both levels of government.

Provincial laws cover most private contracts, including estimates and service agreements. Every province and territory has an electronic commerce or electronic transactions law. In Ontario, it is the Electronic Commerce Act, 2000. Section 11 makes an electronic signature the functional equivalent of an original signature, as long as the requirements in the Act are met, such as the signature being reliable for identifying the person and reliably associated with the document.

Federal law (Part 2 of PIPEDA) deals with electronic documents under federal statutes. A "secure electronic signature" under the Secure Electronic Signature Regulations is only needed where a federal law specifically calls for it, such as certain statutory declarations.

What Ontario excludes

Ontario's Act lists documents it does not apply to, including:

• Wills and codicils.
• Trusts created by wills or codicils.
• Powers of attorney.
• Negotiable instruments.
• Documents of title, with some exceptions.

An exclusion from the Act does not always mean ink is required. It means the Act does not help you, and you must look at other laws. Other provinces have similar but not identical lists, and Quebec has its own framework. If you work in more than one province, check each one.

Can a customer sign an estimate or quote online?

Yes. For most estimates, quotes, proposals, work orders and service agreements, an electronic signature is valid in both countries.

What matters more is whether the document itself is complete and fair. An e-signature does not fix a vague estimate. Our guide to estimates vs quotes explains what to put in each, and from quote to paid walks through the full process from estimate to payment.

Remember that consumer protection rules still apply on top of the signature. A few examples from Ontario's guidance for home renovation businesses:

• You must have a written agreement for any consumer contract worth more than $50.
• If an estimate is part of the contract, you cannot charge more than 10% above it, unless the customer asked for extra or different work and you have a signed change to the contract.
• A customer who signs a contract at their home generally has a 10-day cooling-off period.

An e-signed contract must still follow these rules. Other provinces and US states have their own consumer rules, so check where you work.

What makes an electronic signature hold up if it is challenged?

A signature is only as strong as the evidence behind it. If a customer later says "I never signed that" or "that is not what I agreed to", you need to show four things.

This record is usually called an audit trail or signature certificate. A good e-signature tool creates it for you and attaches it to the signed document.

Five habits that make your signatures stronger

1. Send the signing link to the customer's own email or phone. Not to a shared or office address.
2. Put the price, scope and terms on the page they sign. Do not make them sign a blank page with "see attached".
3. Lock the document once signed. Any change after that needs a new version and a new signature.
4. Send everyone a copy. The signer should get the signed document by email right away.
5. Use change orders. When the scope changes, get the change signed, too. This is where most disputes start.

Which documents should a small business sign electronically?

Most of the paperwork you handle every day can move online.

How do I get a customer to sign online, step by step?

1. Write the document in your estimate or contract tool, with line items, total, taxes, terms and an expiry date.
2. Add signature fields where the customer needs to sign or initial, and any fields you need them to fill in.
3. Send a signing link by email or text to the customer's own address or number.
4. The customer opens it on any device, reads it, and signs by typing or drawing their name and pressing Sign.
5. The tool locks the document and records the audit trail: who, when, from which link and device.
6. Everyone gets a copy. The signed document and certificate go to the customer and to your records.
7. Move to the next step. Book the job, request the deposit or create the invoice from the signed estimate.

The faster this happens, the better. A customer who signs on their phone the evening you visit is less likely to keep shopping around. For a ready-made example, see our HVAC estimate template.

What are the most common mistakes?

1. Treating a text message "OK" as a signature. It may show agreement, but it is weak evidence of what they agreed to. Use a proper signing step.
2. Editing a document after it is signed. Make a new version and get it signed again.
3. Signing for the customer. Never sign on someone's behalf, even if they tell you to on the phone.
4. Sending PDFs to print, sign and scan. It works, but it is slow, often lost, and the scan proves less than a proper audit trail.
5. Forgetting change orders. The original estimate is signed, but the extra work is not.
6. Using several tools. The estimate in one app, the signature in another, the invoice in a third. Versions drift apart. Our article on the real cost of separate business apps covers this.

What does this look like in a real business?

These are illustrations, not customer stories.

A renovation contractor. After a site visit, the contractor sends the estimate from the truck. The homeowner signs that night on their phone and pays the deposit. A month later, they add a bathroom fan. The contractor sends a change order, which the homeowner signs before the work starts.

A cleaning company. New commercial clients sign a service agreement with the schedule, price and cancellation terms. When the client asks for an extra weekly visit, an updated agreement goes out for signature.

A marketing agency. Each new client signs a statement of work. The agency keeps the signature certificate with the file, so if there is a dispute about scope, the signed version is easy to find.

How do e-signatures work in Gravun?

Gravun is the business operating system for any kind of business. Estimates, signatures, payments and invoices live in one app, next to your contacts and calendar.

What is in it:

• Gravun Sign (e-signatures) for estimates, proposals, contracts and other documents. Signed documents come with a signature certificate, and you get a notification when a document is signed.
• Estimates and proposals with line items, terms, pages such as a cover and terms page, and an accept button for the customer.
• Deposits and payments, so the customer can sign and pay in one visit.
• Invoices created from the signed estimate, so the numbers match.
• Gavin (Gravun's AI receptionist and assistant), which can help draft estimates and follow up.
• Gravun Relay (team chat) so your crew knows the job is signed and booked.
• Email marketing and campaigns, calls and texts in the same app, so every conversation sits on the customer's record.

Price. Scale, the most popular plan, is $99 per user per month, as shown on gravun.com on 16 October 2026. See pricing and the full platform.

Who it fits. Businesses of any kind that send estimates or contracts and want signing, payment and invoicing in one place. Trades and renovation companies are a strong fit.

Who it may not fit. If you only need e-signatures and nothing else, a standalone signature tool may be simpler. If a regulator or lender requires a specific type of certificate-based digital signature, check that requirement first. Gravun is also new, launching in 2026. See /compare.

Frequently asked questions

Are electronic signatures legally binding?

In most cases, yes. In the US, the ESIGN Act says a contract cannot be denied legal effect just because an electronic signature was used. In Canada, provincial laws such as Ontario's Electronic Commerce Act, 2000 treat an electronic signature as the functional equivalent of a handwritten one, with some exclusions.

Is a typed name a valid electronic signature?

It can be. What matters is that the person meant to sign and that you can show who signed and what they signed. A typed name inside a proper signing process with an audit trail is common and widely accepted.

Can a customer sign an estimate on their phone?

Yes. Most e-signature tools work on any phone browser. The customer opens a link, reviews the estimate and signs with a finger or by typing their name.

What documents cannot be signed electronically?

The lists differ by country and province. In the US, ESIGN does not apply to wills, family law matters, most of the UCC, court documents and certain notices. Ontario's Act excludes wills, codicils, trusts created by wills, powers of attorney, negotiable instruments and documents of title. Check the rules where you work.

What is the difference between an electronic signature and a digital signature?

An electronic signature is any electronic way of agreeing to a document. A digital signature is a specific technology that uses cryptographic certificates. Most small business documents need only an electronic signature with a good audit trail.

Do I need the customer's consent to use an electronic signature?

Using an e-signature is voluntary for both sides. In the US, if another law requires information to be given to a consumer in writing, ESIGN requires the consumer's consent to electronic records first, after certain disclosures. A short consent screen before signing covers this.

What is an audit trail?

An audit trail, or signature certificate, is the record of the signing: who received the link, when it was opened and signed, and proof the document was not changed afterwards. It is your evidence if a signature is ever disputed.

Is a signed PDF better than an e-signature?

Not usually. A printed, signed and scanned PDF proves less than an e-signature with an audit trail, and it takes longer. The main reason to use ink is when a law or the other party requires it.

Get your next estimate signed today

Pick one document you send often, such as an estimate or service agreement, and move it online first. Add clear terms, an expiry date and a signature field, and send it from your phone.

If you want estimates, Gravun Sign (e-signatures), deposits and invoices in one app, start the 14-day free trial at gravun.com/free-trial. No credit card, and you can cancel anytime.

Sources

All sources checked on 16 October 2026. This article is general information, not legal advice.

• 15 U.S. Code § 7001, General rule of validity (ESIGN Act), Legal Information Institute, Cornell Law School: https://www.law.cornell.edu/uscode/text/15/7001
• 15 U.S. Code § 7003, Specific exceptions (ESIGN Act), Legal Information Institute, Cornell Law School: https://www.law.cornell.edu/uscode/text/15/7003
• 15 U.S. Code § 7006, Definitions (ESIGN Act), Legal Information Institute, Cornell Law School: https://www.law.cornell.edu/uscode/text/15/7006
• Wikipedia, "Uniform Electronic Transactions Act" (adoption by 49 states, DC and the US Virgin Islands): https://en.wikipedia.org/wiki/Uniform_Electronic_Transactions_Act
• New York City Bar Association, "Why New York Must Modernize Its Electronic Transactions Law: UETA & ESRA": https://www.nycbar.org/issues-policy/advocacy-campaigns/ueta-esra-new-york-electronic-transactions-law/
• Ontario, Electronic Commerce Act, 2000, S.O. 2000, c. 17: https://www.ontario.ca/laws/statute/00e17
• Perlaw, "Validity of Electronic Signatures in Ontario" (summary of sections 11 and 31 of the Act): https://perlaw.ca/?p=6001
• MinuteBox, "Electronic Signatures – Regulations and Best Practices" (PIPEDA Part 2 and secure electronic signatures): https://www.minutebox.com/blog/electronic-signatures-regulations-and-best-practices
• Government of Ontario, "A guide for home renovation and roofing businesses": https://www.ontario.ca/page/guide-home-renovation-and-roofing-businesses