Electronic signatures: they're legally binding--so think carefully before you click.

Many people don't realize that the term "electronic signature" can actually include any electronic sound, symbol or process associated with an agreement or transaction. Clicking a button can constitute an electronic signature.

Courts, meanwhile, have found that a wide range of things qualify as electronic signatures. Typed names on e-mails and so-called "click-through" agreements are among them. Spoken recordings are not far behind.

As a result, businesses and individuals need to be aware of electronic signature laws and how to protect themselves against entering into unintended agreements.

With few exceptions, electronic records and signatures meet any requirement of law that an agreement be in writing or signed. For example, parties can document contracts for the sale of goods for $1,000 or more (which, by law, must be in writing) by e-mail or other electronic record with electronic signatures.

The easiest way to use electronic records and signatures without fear is to think of them as having the same effect as paper-and-ink documents. Treat every e-mail the same way you would treat signed paper correspondence. This also goes for "click-wrap" agreements. When confronted with the opportunity to click "I Agree" and proceed with installing software or using a service on the Web, recognize that clicking the button is just as effective as printing out the agreement and signing it in ink.

6 rules for e-mail correspondence

You can reduce the risk of inadvertently entering into a binding agreement through e-mail by following these rules:

1. Don't say (or consent to) anything in an e-mail that you would not write down on a piece of paper and sign with a pen. Remember: It is practically the same thing.

2. Do say (or consent to) things to which you do want to be bound, and talk to a competent e-commerce lawyer about how to make sure the other party is bound. Take advantage of the technology by understanding how to use it.

3. Automatically include a footer on every outgoing e-mail that disclaims electronic signatures. For example: "In the absence of an express statement to the contrary, nothing in this e-mail constitutes an electronic signature." You can still electronically sign the e-mail (such as by including the notation "My electronic signature" near your typed name), but the footer removes any ambiguity about whether the e-mail is electronically signed.

4. Agree early in any contractual relationship who on each side can send and receive binding e-mail communications (like purchase orders and notices). Give this responsibility only to people you trust to do paper transactions of similar import.

5. Decide who in the organization will be permitted to enter into or approve click-wrap agreements and require that these people be consulted before anyone clicks "I Accept." Keep printed copies of all click-wrap agreements.

6. Adopt and maintain a policy regarding electronic records and signatures and have a competent e-commerce lawyer review it periodically.

Stephen L. Tupper is a member of the E-Commerce and Technology law team at Detroit-based Dykema Gossett PLLC, a Silver-level member of the Detroit Regional Chamber.