Legal Question in Business Law in California

Re: fax signatures

The short answer is, often but not always.

The type of instrument involved may be significant, with more formal documents such as wills and court filings more likely to be unacceptable unless bearing original signatures. However, remember that in order for there to be a facsimile signature at one end of the phone line, there must have been an original bearing an original signature at the other end. So, the real question maybe whether the FAXed copy is admissible evidence that the original exists. Usually it is. See Evidence Code section 1521.

The Civil Code now authorizes electronic commerce in rather broad terms, allowing electronic signatures and even electronic notarization, if the parties consent beforehand. Civil Code sections 1633.1 and 1789 et seq.

The role of a signature on a document is to show the agreement of the signer and his or her intention to be bound by the instrument signed. Modern courts have a rather liberal and relaxed view on what is an adequate signature to show intent and/or agreement. Even use of a pre-printed letterhead has been held to satisfy the requirement that an instrument be signed (but I would not count on this holding up in all situations!).

Customs in a particular industry also govern what is a binding signature. In modern-day residential real estate transactions, offers and counteroffers are commonly FAXed back and forth between buyers, sellers and their agents and brokers. These are binding. Rubber stamp and preprinted signatures are common on checks and stock certificates. Look at the front of a dollar bill for an example of preprinted signatures.

All in all, I would say that FAXed signatures are much more likely than not adequate to prove an agreement or bind the signer.