E-Sign Of The Times

<B> E-Sign Of The Times</B>

By Cheryl Rosen

New technology brings new questions--and the NBTA Hotel RFP session opened the issue of exactly what kind of signature is necessary to make an electronic bid binding.

Johnson & Johnson "is asking one person from the hotel company to sign the RFP one time," said travel services manager Wendy Nathan.

Prudential Insurance has been requiring paper backup with a signature, but "this year we're saying an electronic submission implies a contract offer and acceptance," said one travel staffer in the audience.

"I send a letter after the fact to each hotel in the program saying I accept your bid at such and such a rate," said another.

On the supplier side, a representative of Hotel Bid Express said the Federal Trade Commission has passed legislation saying online contracts are binding. Nonetheless, RFP Express keeps a repository of images of all RFPs it processes.

Preferred Hotels uses an electronic signature, said national accounts manager Joe Carino.

Even the lawyers differ in their opinions. Said Jonathan Howe of Howe & Hutton Ltd. in Chicago and Washington, "The person who makes the offer controls the method by which it can be accepted. That means you can do an electronic signature as long as you say in the contract that such a signature is acceptable. If I say, 'You will signify your acceptance of this contract by waving a flag on the rooftop,' that's my prerogative. The bottom line is you can say, 'Here's my offer--e-mailing it back to me will signify your acceptance.' "

But Jeffrey Miller of Ellicott City, Md., disagreed. "You do need a signature on a contract, though it doesn't have to be an original signature; a faxed one will do," he said. "I would advise clients against accepting e-mail for contracts unless you can show the e-mail is from the person responsible for signing the contract. What if their assistant sent it? Would that be a binding contract? So I recommend getting a signature--how long does it take to get a fax? And if you ever have to go to court, I think you'll need it.