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No doubt exists that the electronic contract has become a key tool in any company’s digital transformation. Today, it’s not just a convenience—it’s an essential asset for business survival.
In this blog post, we will explain what an electronic contract is. We will also look at the different types of electronic contracts that companies can use.
What is an electronic contract?
Put simply, an electronic contract refers to any contract that someone creates and signs electronically.
While it retains all the core features of a traditional contract, it introduces some key changes in format. In essence, it’s still a mutual agreement in which the parties commit to the terms established. However, the differences lie in how the contract is executed:
- The content is stored as a digital file, not on paper
- The parties do not need to be in the same physical location
- Consent is given electronically, usually via electronic signature or another digital acceptance method
Now that we understand the basics, let’s explore the types of electronic contracts recognized in legal frameworks.
Types of electronic contracts
Electronic contracts can be categorized based on several criteria. The most common classifications are:
- By the parties involved: business-to-business or business-to-consumer
- By the method of execution: direct or indirect electronic contracts
- By how consent is given: purely electronic or hybrid contracts
- By the contract’s purpose: delivery of goods or provision of services
Let’s take a closer look at each.
1. Business or consumer electronic contracts
These contracts are distinguished by the type of parties involved:
- A B2B online contract is signed between professionals or companies
- A B2C contract involves at least one party who is a consumer or end user
2. Direct or indirect electronic contracts
This classification is based on how the contract is executed:
- A direct electronic contract is carried out entirely in the digital space. Common examples include subscribing to a streaming service, downloading digital content, or paying for a cloud storage plan.
- An indirect electronic contract needs some physical action. This can include shipping a product or attending a service in person. Examples include purchasing a physical item online or buying a plane ticket.
3. Purely electronic or hybrid contracts
Based on how the parties express consent:
- A purely electronic contract is signed entirely through digital means. Consent might be given via any type of electronic signature
- Clicking an “I agree” checkbox or button
- A two-step verification process, such as clicking a link and entering a code (common in banking services)
- A hybrid electronic contract involves both digital and physical steps. For instance, downloading a form online, signing it manually, and sending it by mail.
4. Delivery or service-based electronic contracts
This category depends on what the contract is for:
- A delivery contract involves the handover of a product, whether digital or physical
- A service contract is for the provision of services, such as web hosting (digital) or a flight (physical)
Are electronic contracts legally valid?
For years, the legal validity of electronic contracts sparked debates. Thankfully, modern legislation and technology have fully recognized their enforceability.
In Spain, Law 34/2002 on Information Society Services and Electronic Commerce confirms that electronic contracts are legally valid. Article 23 states:
“Electronic contracts shall produce all the legal effects provided for by the legal system, provided that consent and other legal requirements are met.”
This means the key to legal validity is clear and provable consent from the parties involved.
How electronic signatures ensure validity?
To guarantee consent and provide legal security, electronic signature solutions play a vital role. These solutions can confirm:
- The identity of the parties
- That both parties explicitly consented to the contract
- That the contract text hasn’t been altered after signing
- The exact time and date of signing
This chain of evidence ensures the binding nature of the electronic agreement.
When is an e-contract considered accepted?
As with paper contracts, acceptance occurs when both parties have signed the document.
The electronic signature confirms:
- Who the signers are
- That each signer agrees to the terms and conditions
Once all parties sign the contract digitally, they consider the electronic contract accepted and enforceable.
💡 FACT: According to the e-signature statistics gathered by the editorial team of LLCBuddy “Electronic signature collection reduces administrative expenses for businesses by 55-78% compared to paper.”
Why your business should embrace digital contracts?
The rapid growth of e-commerce and digital services means businesses must adapt or fall behind. Consumers now expect fast, seamless, and digital interactions.
If you ask clients to download, print, sign (through handwritten signatures), and mail a physical document, you’re creating friction. Meanwhile, your competitors are closing deals instantly online with just a few clicks.
Using tools like Signaturit’s electronic signature solution, along with a contract management software, is quick and easy. Adding online contract signature to your business signing process is about saving time. Plus, it keeps everything legally safe.
“With Signaturit’s electronic signature solution, we’ve streamlined our business processes without compromising the legal guarantees we need as an insurance company.”
— Jordi Rivera, CEO of DAS Seguros
Final thoughts: The future of contracting is digital
Electronic contracts are no longer optional. They’re essential for any company aiming to stay competitive and grow in a digital-first world.
Failing to digitize your contracting process can lead to missed opportunities, inefficiencies, and even lost customers.
Ready to simplify your contracts?
Experience the benefits of fast, secure, and legally binding electronic contracts.
