Why this matters.
In the UK most commercial contracts can be signed electronically. The Electronic Communications Act 2000 and the UK eIDAS Regulation (retained as the Electronic Identification and Trust Services for Electronic Transactions Regulations 2016) give electronic signatures legal admissibility, and the Law Commission’s 2019 report confirmed that an electronic signature can satisfy a statutory requirement for a signature if the signatory intended to authenticate the document. The practical risk is not whether e-signing is allowed but whether you can prove who signed, when, and that the document was not altered afterwards.
Some documents need extra care. Deeds must be signed in the presence of a witness under the Law of Property (Miscellaneous Provisions) Act 1989, and certain documents, such as some wills, powers of attorney and property transfers, have specific formality rules. Businesses using a free or ad hoc e-signature tool, or typed names in an email, may find a contract hard to enforce when challenged. Reliable audit trails, identity checks proportionate to the risk and sensible retention also matter for UK GDPR compliance, because signature data is personal data.