Can Tradeline Brokers Use Digital Signatures to Sign Contracts?

Tradeline Supply Company, LLC accepts legitimate digital signatures that are compliant with California state law. However, brokers need to be aware of what constitutes a legally binding digital signature and use proper methods to digitally sign documents.

What Is a Digital Signature?

A digital signature, per California law, is an electronic stand-in for a manual signature intended to have the same force and effect as a manual signature. According to the CA Secretary of State, “digital signatures can be used for many transactions that currently require a hand written signature.”

How Do Digital Signatures Work?

A digital signature is only legitimate if:

    • It is unique to the person using it.
    • It can be verified.
    • It is solely controlled by the person using it.
    • “It is linked to data in such a manner that if the data are changed, the digital signature is invalidated.”
    • It complies with Secretary of State regulations.

For these reasons, digital signatures must be issued by a digital signing service that has been legally approved by state authorities.

What Does This Mean for Tradeline Brokers?

If you are a tradeline broker working with Tradeline Supply Company, LLC, you cannot legally sign a contract by simply typing in your name using a standard word processing or design software. This does not comply with state regulations and therefore it does not qualify as a legally valid digital signature.

To execute legitimate, legally binding digital signatures, you must use a digital signature provider, such as Adobe, that also provides authorized digital signature certificates to validate the signatures.

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