Skip to main content

Insight article

January 30, 2020

Don’t put your footer in it when it comes to contracts

Companies are being urged to review their electronic procedures following a court ruling that an automatic email signature could suffice to conclude a binding contract.

Although legislation to align e-signature standards across the EU was introduced by the Electronic Identification Regulation in 2016 and the Electronic Communications Act 2000, there remains confusion.

Head of Corporate and Commercial Victoria Holland explains:

“As a general rule, no contract made under English law needs to be signed, or even be in writing, unless the contract is a guarantee for payment by someone else, or it relates to land or is made by deed. People often think they must sign on the dotted line to seal a deal but in many situations all that is needed is a clear agreement and intention.

With the increased use of electronic communications in contractual negotiations, it is important for companies to understand all the different circumstances in which an exchange may form a binding contract.”

Last year, the Law Commission published a report on the electronic execution of documents to tackle this uncertainty. The Law Commission confirmed that e-signatures could be used to execute documents as an alternative to wet ink signatures in most circumstances and relied upon as evidence.

The recent case of Neocleous v Rees signals a further shift in the approach to e-signatures with implications for anyone involved in electronic, contractual negotiations.

The court ruled that including the writer’s name in the automatic email footer amounted to an electronic signature and was sufficient to conclude a binding contract for transferring an interest in land.

The judge said that the email sender knew that his name would be added as a footer and, although it was an automatic process, it represented a conscious decision, combined with the name and contact details being in the conventional style of a signature, at the end of the document.

Head of Dispute Resolution, M. Qaiser Khanzada, explains:

“This case related to a fairly rare type of property transaction but has an important message for day-to-day communications. If companies are to avoid inadvertently entering into a contract with suppliers or customers, they should incorporate a clear disclaimer designed to prevent the accidental formation of a contract and not simply rely on an automatic proviso to their e-signatures.”

It follows that, as well as email footers, other methods that could create a valid signature include:

  • secure passwords
  • tick-boxes
  • PIN numbers

Ink signatures are still required for the execution of deeds, as the signature must be witnessed, and the law does not presently allow for remote witnessing. However, live video witnessing is under discussion.

For contract enquiries, speak to Victoria Holland today. For contract disputes, call M. Qaiser Khanzada today.

Note: This is not legal advice; it provides information of general interest about current legal issues.

Stay in touch

Subscribe to our newsletter

Stay in touch

By completing your details and submitting this form you confirm you are happy for us to send you marketing communications and that you agree to our Website Privacy Policy and Legal Notice and to us using Mailchimp to process your data.


Sending

News/Insight

  • The Employment Rights Act is a call to action for employers 
    A new year, a new employment framework: what employers need to know about the Employment Rights Act passed by parliament in December 2025.


    Read more
  • Dilapidations explained: What commercial tenants and landlords need to know
    Dilapidations are a common source of dispute at the end of a commercial lease. They can involve significant sums of money and often come as an unwelcome surprise to tenants who believed they had left a property in reasonable condition. Understanding


    Read more
  • The role of due diligence in corporate transactions
    In corporate transactions, due diligence is a key stage that usually follows agreement of Heads of Terms, allowing the Buyer to investigate the target company or its assets before committing to the deal.


    Read more
  • Love in later life and the inheritance tax trap
    Increasingly, lawyers are seeing couples who have chosen to live together rather than marry, sometimes for many years, without fully appreciating how differently the law treats them, particularly when it comes to inheritance tax and financial protect


    Read more
  • Understanding Heads of Terms in corporate transactions
    Heads of terms are a crucial first step in corporate transactions. Learn what they include, why they matter, and how they shape successful deals.


    Read more

What they say...

  • Amish Bristol, January 2026
    Absolutely brilliant, fast, professional, clear and delivered a robust service “Recent mortgage oversight from Ben Marks and Anne was superbly dealt with, and I intend on moving all my business to them. For a big firm, they really do pay attent

  • Client, January 2026
    Excellent experience “The process of my work was quick and effective.”

  • Vicky, January 2026
    Clear, friendly, helpful “Very efficient and helpful with arrangements for my will.”

  • R Cook, December 2025
    Settlement Sorted “Grayson Stuckey was great. Efficient and friendly with all aspects of the support provided. We worked well together and achieved a positive outcome. Recommended.”

  • Ivan Naisbitt, December 2025
    More than just a service “Michael Davies has been representing me for about 35 years, and I cannot recommend him or RIAA Barker Gillette (UK) highly enough. Aside from the normal conveyancing, he is always on hand to advise and guide you throug

Read more
Send this to a friend