Here's an engaging story inspired by a true case to answer a key question for successful business owners:
Is a customer’s electronic signature binding if the customer was not given enough time to review the contract?
The Deal That Closed Too Fast
Mark Weaver was a successful small business owner in the heart of Riverton. He had spent years building his custom furniture business from the ground up, and when an energy consultant offered him a way to cut his electricity bills by installing solar panels, he was intrigued. The consultant, Greg, was smooth-talking, confident, and seemed to know everything about the energy business. He made promises of massive savings and environmental benefits, all packaged in a way that sounded like a no-brainer for Mark.
One bright Tuesday morning, Greg arrived at Mark's workshop with a sleek tablet in hand. "This won't take long at all," Greg assured, flashing a smile that didn’t quite reach his eyes. "We have a standard agreement—just routine stuff. You sign this today, and we'll have the panels up by the end of the week."
Mark was busy. Orders were piling up, and he needed to get back to work. But he was also eager to cut down on those rising energy costs. He barely glanced at the tablet as Greg started scrolling through the document. "It’s just your basic agreement," Greg continued, summarizing each section with a quick word or two. "This part is about the installation, here’s the warranty, and right here’s the payment plan. Simple, right?"
Mark nodded along, trusting Greg’s explanations. The document was long—32 pages, Greg mentioned offhandedly—but Mark didn’t have the time or energy to comb through every detail. And besides, Greg seemed trustworthy enough.
Greg swiped to the final page. "Just sign here," he said, handing the tablet to Mark. Mark scribbled his signature on the screen, and in a flash, Greg took back the tablet. "All done!" Greg announced. "We’ll take care of everything from here. Expect the crew in a few days."
Mark felt a twinge of uncertainty but quickly brushed it aside. He had a business to run, and Greg seemed to have everything under control.
A week later, Mark was shocked when a dispute arose over the installation. The company wasn’t holding up its end of the deal, and when Mark tried to take legal action, he was hit with a roadblock: the contract he’d signed included a mandatory arbitration clause buried in the fine print. The clause meant that any disputes had to be resolved through arbitration, a process heavily skewed in favor of the solar company.
When Mark’s lawyer, Sarah, reviewed the contract, she found something disturbing. Not only had Mark agreed to arbitration, but his signature had been automatically applied to over 25 places in the contract, including sections he had never seen or discussed. And those sections? They were all designed to protect the solar company, leaving Mark with little recourse.
"You signed this?" Sarah asked incredulously.
"Well, yes… I mean, sort of," Mark stammered. "I signed once, but I didn’t know it would be copied everywhere. Greg just said it was standard stuff."
Sarah sighed. "They rushed you, Mark. You weren’t given a real chance to review the document. This agreement is clearly one-sided and unfair."
After a lengthy legal battle, the arbitration clause was eventually thrown out. The judge ruled that the way the agreement was presented—rushed, on a company-owned tablet, with no opportunity for Mark to review the terms properly—was unconscionable. The solar company had taken advantage of Mark’s trust and his busy schedule, and the deal had closed far too fast.
Remember: Before asking your customers to sign a contract electronically, be sure you give them enough time to actually read the contract and ask questions.