Are Electronic Signatures Legally Binding for Supplier Contracts in the UK?

An electronic signature (or e-signature) is a digital method of signing a document that replaces the need for a wet ink signature. It shows a person’s intent to agree to the content of a document and can take several forms — from a simple click on a button to a verified digital certificate.

Electronic signatures are legally recognised in the UK and across many jurisdictions when they meet certain criteria, such as authenticity, integrity, and intent to sign.

There are three main types of electronic signatures, each offering a different level of security and legal strength:

Yes — electronic signatures are legally valid in the UK and can be used to execute most types of business contracts, including supplier agreements.

The legal recognition of electronic signatures in the UK is based on several key laws and regulatory guidelines that establish when and how e-signatures can be considered legally binding.

1. Electronic Communications Act 2000

This foundational law confirms that electronic signatures are legally admissible in the UK, provided there is:

• A clear intent to sign
• Agreement between parties on using electronic means

2. eIDAS Regulation (EU No. 910/2014)

Although the UK has left the EU, the eIDAS framework was retained in UK law. It defines the different types of electronic signatures (simple, advanced, qualified) and their legal effects.

• Qualified Electronic Signatures (QES) are granted the same legal status as handwritten signatures.
• Advanced and Simple Electronic Signatures are also valid if supported by sufficient evidence of the signer’s intent.

3. Law Commission Guidance (2019)

The UK Law Commission confirmed that:

“An electronic signature is capable in law of being used to execute a document (including a deed) provided that the person signing intends to authenticate the document.”

This guidance reassures businesses that e-signatures are enforceable, especially when combined with a robust audit trail and identity verification.

Most supplier contracts fall under standard commercial agreements, where no special form is required by law. As a result:

• Simple electronic signatures are generally sufficient
• No need for wet ink signatures unless required by statute (e.g. certain real estate transactions under the Law of Property Act 1989)

Supplier contracts are often time-sensitive, involve multiple stakeholders, and require a clear audit trail. Using electronic signatures offers numerous advantages that go beyond just eliminating paper. It transforms how businesses manage their supplier relationships — saving time, reducing risk, and improving compliance.

• Faster turnaround: Contracts can be reviewed and signed within minutes, not days.
• Remote signing: Stakeholders in different locations can sign instantly — no need for in-person meetings.
• Automated reminders: E-signature platforms send automatic follow-ups to avoid delays.

• Frictionless onboarding: Quickly onboard new suppliers by sending agreements for digital signature.
• Professional experience: Demonstrates a modern, reliable business process.
• Fewer errors: Avoid missing fields or incomplete signatures through guided signing workflows.

• Legally binding: E-signatures are valid under the Electronic Communications Act and eIDAS.
• Audit trail: Every signed document includes a time-stamped trail of actions (viewed, signed, IP address).
• Tamper-proof files: Signed documents are locked and encrypted to prevent post-signature changes.

• Lower administrative costs: Eliminate printing, scanning, shipping, and physical storage.
• Centralised document management: Keep all supplier contracts in a secure, searchable platform.
• Less back-and-forth: Reduce time wasted chasing signatures or managing paper files.

By integrating e-signatures into your supplier workflows, you not only accelerate operations but also strengthen compliance and supplier trust — essential for scaling efficiently in today’s market.

Implementing electronic signatures into your supplier contract workflows is a straightforward process — and it doesn’t require a complete overhaul of your systems. With the right tools and procedures, your business can move from paper-based agreements to fully digital, legally compliant workflows in just a few steps.

1. Choose a trusted electronic signature platform: Look for a provider that is eIDAS-compliant, offers audit trails, and meets your business's security standards like Yousign.
2. Upload your supplier contract: Import your PDF or Word document into the platform.
3. Define the signers and signing order: Specify who needs to sign (supplier, internal approver, legal team) and in what order, if necessary.
4. Place signature fields and other required inputs: Add fields for signature, date, name, title, or checkboxes as needed.
5. Send the contract for signature: The platform will email the signing link to all relevant parties.
6. Track progress in real time: See who has opened, viewed, or signed the document. Send reminders with one click.
7. Store the final signed document securely: Once signed, the file is encrypted, sealed, and stored with a detailed audit trail.

• Supplier agreements
• Service level agreements (SLAs)
• Purchase orders
• Nondisclosure agreements (NDAs)
• Contract amendments or extensions
• Termination notices
• Payment terms and delivery schedules

By digitising your supplier contract process, you not only reduce manual errors and save time, but you also create a secure and compliant workflow that’s easy to scale across departments or regions.

When it comes to choosing an electronic signature platform in the UK, it’s essential to select a solution that is not only legally compliant, but also easy to use, secure, and adapted to your business needs — especially for managing supplier contracts.

Among the options available, Yousign stands out as a trusted European solution that combines simplicity, compliance, and efficiency.

Yousign is a fully eIDAS-compliant electronic signature solution designed for businesses that need to manage legally binding documents with confidence. Here’s why it’s an ideal choice for UK companies:

• Legally binding under UK law: Yousign meets all requirements of the Electronic Communications Act 2000 and post-Brexit eIDAS UK framework.
• Secure and GDPR-compliant: All data is hosted in Europe and protected by end-to-end encryption. Each signature includes a full audit trail (timestamp, IP address, signer identity, etc.).
• Designed for business workflows: Easily manage multi-party supplier contracts, approval chains, and recurring agreements — all from a single, intuitive interface.
• Fast implementation and user-friendly UI: No training required. Teams can start signing within minutes thanks to Yousign’s clean, easy-to-navigate platform.
• Ideal for remote and hybrid teams: Suppliers and internal stakeholders can sign documents from anywhere, on any device.

• Signature workflows with defined roles and permissions
• Reusable templates for frequently signed contracts
• Real-time tracking and automated reminders
• Easy document retrieval and digital archiving

Implementing electronic signatures in your organisation — especially for supplier contracts — requires more than just choosing the right platform. To ensure legal compliance, security, and operational efficiency, businesses should follow a set of proven best practices.

Here’s how to do it right:

• Use a solution that complies with the UK eIDAS framework and the Electronic Communications Act 2000.
• Clearly establish the intent to sign, such as through a checkbox or signature declaration.
• For higher-risk documents, opt for advanced electronic signatures (AES) or qualified electronic signatures (QES) when appropriate.

• While simple electronic signatures are legally valid for most contracts, you should still validate signer identity where required (e.g. high-value supplier agreements).
• Use two-factor authentication (2FA) or email confirmation to enhance security.

• Make sure every signed document includes: Date and time of each action, IP address (if available), Signer details, Document version history.
• Store signed contracts in a secure, access-controlled repository.

• Create reusable templates for frequently signed documents (e.g. NDAs, SLAs, purchase orders).
• Use predefined workflows to assign signer roles, order of signing, and approval steps.
• Automate reminders to reduce delays and follow-ups.

• Provide short onboarding or training for internal users.
• Ensure your suppliers understand that e-signatures are legally binding and secure.
• Share documentation or FAQs that explain the process to external stakeholders.

• Connect your eSignature solution to your CRM, ERP, or procurement tools.
• Enable end-to-end digital workflows, from contract creation to signature and archiving.

By following these best practices, your business can implement electronic signatures with confidence — increasing speed, reducing risk, and improving supplier relationship management.