Electronic Contracts & Electronic Signatures in NSW

Electronic Contracts and Signatures in NSW

Contracts and other agreements can often be formed and signed electronically in New South Wales.

Electronic contracting is now widely used in commercial transactions, property matters, banking, finance and other legal arrangements.

How Can an Electronic Contract Be Accepted?

Depending on the circumstances, a person may indicate agreement electronically in a number of ways, including:

• clicking a checkbox or button confirming agreement;
• typing a name or confirmation into an online form;
• signing a document using a stylus, touchscreen or electronic signature;
• using an electronic signing platform such as DocuSign; or
• otherwise communicating acceptance electronically.

Are Electronic Contracts Legally Binding?

An agreement made electronically can be legally binding where the ordinary requirements for a valid contract are satisfied.

These requirements can include matters such as offer, acceptance, consideration, intention to create legal relations and sufficient certainty of the agreed terms.

Electronic Signatures

The Electronic Transactions Act 2000 (NSW) provides a legal framework for electronic communications and electronic signatures.

Whether an electronic signature is effective will depend on the document, the method used, the intention of the person signing and any specific legal requirements applying to that transaction.

Electronic Contracts for Property Transactions

Electronic contracts are commonly used in NSW property transactions and can make contract preparation, signing and exchange more efficient.

Property transactions may also involve electronic settlement through platforms such as PEXA, together with verification of identity and client authorisation requirements.

Learn more about PEXA and electronic property settlement.

Learn more about Verification of Identity.

When Is Legal Advice Important?

Not every document can necessarily be signed or executed in the same way. Particular documents may have formal witnessing, execution or registration requirements.

Legal advice should be obtained where there is uncertainty about whether an electronic method is appropriate for a particular contract, deed or transaction.

Speak to Russell Kelly & Associates

Russell Kelly & Associates can assist with electronic contracts, commercial agreements and property transactions in New South Wales.

Contact us to discuss your matter.

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This information is general in nature and should not be relied upon as legal advice. The validity and execution requirements of a particular electronic document depend on the circumstances and applicable law.