A recent federal law makes electronic signatures as legal as the pen-and-ink variety--at least for contracts that fall within federal jurisdiction. But to be binding, an e-signature must have built-in features proving that you applied it and that the document has not been changed since.
OnSign does the job with a minimum of fuss and no cash outlay whatsoever. We tested a pair of betas--one for Word 97 and 2000, and the other for Outlook 98 and 2000 and for Outlook Express 5 or later. Final (still free) versions should be available for download from OnSign's site by the time you read this.
The first time you run the software, it asks you to scan an image of your signature into your PC and uses this to create your e-persona--a file combining the image with RSA public/private-key encryption technology. If you can't provide a scanned image of your signature, the software gives you a form to sign and fax to OnSign, which will return your e-persona file by e-mail.
After installing your e-persona, you can start e-signing, either by clicking a new toolbar button in Word or by selecting an Outlook menu item (you must also use HTML or RTF formatting to use OnSign with Outlook). The software prompts you for your selected password before the signature appears in either case.
Recipients who have OnSign see your signature; if the document has been changed, it's marked invalid. Recipients without OnSign can click a link to install a viewer. The process isn't too difficult with Outlook, but the viewer didn't work in our tests with Word. An OnSign spokesperson said the problems could have any of several causes and recommended installing the full app instead of using just the viewer.
Also, you can't apply more than one e-signature to a single document; to do that, you need Silanis Technology's corporate-level ApproveIt ($149 per person). Since the majority of legal documents require multiple signatures, this restriction limits OnSign's real-world usefulness. Still, it's a free introduction to a technology that may someday save quite a few trees.
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