Introduction

Signing a contract is a big moment in any business deal—itʼs when both sides shake hands (figuratively or literally) and lock in the terms for real. But how exactly do you sign a business contract, and what are your options? With all the tech advancements and new legal rules, there are now more ways than ever to get that signature down.

In this article, weʼll explore the most popular methods, their perks, and when each one might be the best fit for your business.

Read: Do I need to sign a contract for it to be valid?

Traditional wet signature

The most old-school way to sign a contract is with a wet signature —basically, putting pen to paper and scribbling your name the old-fashioned way. Wet signatures have been the go-to method for centuries, and theyʼre still going strong, especially for documents that need that personal touch or when the law insists you break out the pen

Why wet signatures are still relevant

Even in our digital age, wet signatures havenʼt completely vanished. Theyʼre still required for certain documents, like wills, deeds, and some types of financial agreements. Wet signatures can feel more personal and tangible, and they provide a sense of security for people who might be skeptical about digital alternatives.

Pros of wet signatures

Widely accepted

Wet signatures are accepted just about everywhere. Whether you're signing a business deal, a lease, or a contract with a client across the world, everyone gets it—putting pen to paper means itʼs official.

Security and authenticity

Signing in person makes it pretty tough to fake. You know exactly whoʼs signing, and itʼs harder to dispute later.

Suitable for high-value contracts

For significant transactions—such as mergers and acquisitions, real estate deals, or large financial agreements—a wet signature provides a tangible sense of security and finality. Having a physical document with original signatures offers peace of mind to all parties involved, as it symbolizes commitment and seriousness.

Read: How to review a statement of work like a pro

Cons of wet signatures

Time-consuming

Getting everyone to physically sign can be a hassle. Either youʼre meeting in person, or mailing documents back and forth, which can drag things out and slow down the process.

Storage issues

Paper documents take up space and need to be stored securely. Plus, when you need to find that one contract from two years ago, itʼs like looking for a needle in a haystack.

Electronic signatures

Electronic signatures (e-signatures) are having a moment, thanks to the boom in remote work and digital transactions. An e-signature is like a digital stand-in for your handwritten signature, and it comes in all shapes and sizes—from typing your name in a box, clicking a “Sign Hereˮ button in an email, to doodling your name with a stylus or finger on a touchscreen.

Pros of electronic signatures

Convenience and speed

E-signatures let you sign contracts without everyone needing to be in the same room—or even the same country. Perfect for remote teams or international clients, you can get deals signed off in minutes instead of waiting for documents to be mailed back and forth.

Cost-effective

No more spending on printing, postage, or filing cabinets. E-signatures save on all those costs by keeping everything digital. Plus, you wonʼt need to dig through stacks of paper to find a signed contract.

Legally recognized

E-signatures are considered legally binding in many places, like the U.S., UK, and EU, thanks to regulations like the ESIGN Act and eIDAS. So, you can trust that your digital signature carries the same legal weight as a traditional one.

Cons of electronic signatures

Potential security risks

Even though e-signatures are generally secure, theyʼre not immune to cyber threats. Without strong encryption and authentication, there's a risk of hacking or unauthorized access, which could compromise your documents.

Not always accepted

E-signatures arenʼt a one-size-fits-all solution. Some countries or specific types of documents still insist on a traditional, wet signature. Before going digital, itʼs wise to check if electronic signatures are legally valid for your specific needs and location.

Read: 7 common contract mistakes that could cost your business thousands

Digital signatures

Digital signatures are a more secure version of e-signatures that use encryption to confirm who signed and make sure the document hasnʼt been altered. Theyʼre often used for sensitive or high-stakes contracts where keeping things locked down is a priority.

Pros of digital signatures

Enhanced security

Digital signatures go a step beyond e-signatures by using encryption to ensure your document stays exactly as signed, without any sneaky edits or alterations. This added protection helps you sleep better at night knowing your contract hasnʼt been tampered with.

Identity verification

With digital signatures, itʼs not just about clicking “signˮ—they often come with verification steps like digital certificates or two-factor authentication. This makes it much tougher for anyone to forge your signature or sign on your behalf without your consent.

Audit trail

Digital signatures create a detailed log showing who signed the document, along with the exact time and location. This built-in audit trail not only boosts security but also keeps everyone accountable, providing a clear record in case of any disputes later on.

Cons of digital signatures

Initial setup

Getting started with digital signatures isnʼt as simple as just downloading an app. Youʼll need a digital signature platform, and there could be some upfront costs for software or digital certificates. Itʼs a bit of an investment before you can start signing away. Learning curve

Compared to basic e-signatures, digital signatures can be a bit trickier to set up and use. You might have to figure out things like encryption keys and digital certificates, which can feel like learning a new language if youʼre not tech-savvy.

A hybrid approach

A hybrid approach is like a signature buffet—you get a bit of everything.

Depending on the situation, a business might use wet signatures for super sensitive deals, e-signatures for the usual day-to-day stuff, and digital signatures when they want that extra layer of security.

Read: The top 5 contracts every small to medium-sized businesses should have

Pros of hybrid signatures

Flexibility

Hybrid signatures give you the best of both worlds. You can mix and match wet and electronic signatures based on what works best for the contract and the people signing it. Need a wet signature for a high-stakes deal but an e-signature for a quick approval? No problem—hybrid signatures let you choose whatʼs right for each situation.

Tailored approach

With hybrid signatures, youʼre not stuck with a one-size-fits-all solution. You can create a signing process thatʼs just right for your needs, balancing speed and convenience with security and compliance. Itʼs like having a custom-made suit for your contracts.

Cons of hybrid signatures

Increased complexity

Juggling different types of signatures can be a headache. If your team isnʼt clear on when to use wet, electronic, or digital signatures, things can get confusing fast. Itʼs like trying to play three sports at once—someoneʼs bound to drop the ball.

Higher costs

Using a mix of signature methods can mean investing in digital tools and physical storage, which can add up. You might find yourself paying for both a fancy digital platform and a filing cabinet, which isn't ideal if youʼre watching your budget.

Inconsistent procedures

Switching between signature methods can lead to inconsistencies in how documents are handled and secured. One contract might follow strict security protocols, while another gets printed out and signed in a rush—this inconsistency can cause compliance headaches.

Time-consuming

Coordinating multiple signature methods for a single contract can drag things out. If one party needs a digital signature, another needs a wet signature, and someone else wants an e-signature, youʼre looking at a potential slowdown that could have been avoided with a single approach.

Read: When should I hire a lawyer for my contract?

Conclusion

So, how are contracts usually signed? It depends on what the business needs, the type of contract, and how much security is needed. Wet signatures are still popular for traditional, high-value deals, while e-signatures and digital signatures bring speed, convenience, and security to most other business transactions. A hybrid approach combines all these methods, giving businesses the flexibility to pick the best option for each situation.

Knowing these choices will help you decide the right signing method for your contracts and make sure they are legally binding and secure.

How Cobrief can help with contract review

Reading your business contracts can feel overwhelming as an owner-manager of a small to medium-sized business. Thatʼs where Cobrief comes in. Cobrief helps business owners and operators review their business-to-business contracts for legal risks.

Upload your contract to Cobrief's AI contract review software, click review and youʼll get a list of all the risks, in plain English. This helps you decide whether to sign, negotiate or reject the terms of your contract, or hire a lawyer. Think of it as a heat map for your contracts.

Get started here.