Electronic signatures are legally binding digital records that can be used to identify parties to an agreement and verify the participants in a transaction. This means that digital documents signed with electronic signatures have the same validity and legal effect as those signed on paper. Common uses for electronic signatures include contracts between businesses, purchase orders, invoices, and tax documentation. To meet the legal requirements of an electronic signature, multiple conditions must be met: the signer must authenticate themselves to the system; they must consent to signing electronically; and the signature record must be kept securely and be verifiable by all parties. With these safeguards in place, businesses can trust that every document exchanged is secure and legitimate.