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Recent Answers to Stock Subscription Agreement Law Questions

Is a stock subscription agreement legally binding if it was signed electronically?

View Darryl S.
5.0 (135)

Enforcement

Stock Subscription Agreement

Texas

I recently entered into a stock subscription agreement with a company, which involved me purchasing a certain number of shares. The agreement was signed electronically using an online platform. However, I am now unsure if this electronic signature is legally binding and if the agreement is enforceable. I would like to seek legal advice on the validity of the agreement and the enforceability of the terms.

Darryl S.

Answered Sep 16, 2025

Electronic signatures are generally legally valid and enforceable in most jurisdictions, but the specific enforceability of your stock subscription agreement depends on several factors: a) did you have an intent to sign b) were securities laws followed in this offering. You'll want to engage a litigator with experience in these topics, esp. securities laws.

Is a stock subscription agreement legally binding if it was not signed by both parties?

View Jerome L.
5.0 (2)

Contracts

Stock Subscription Agreement

Georgia

I recently entered into a stock subscription agreement with a company, where I agreed to purchase a certain number of shares in exchange for a specific amount of money. However, I just realized that the agreement was only signed by me and not by the company. I am now concerned about the legality and enforceability of the agreement, and I would like to know if it is still binding even though it was not signed by both parties.

Jerome L.

Answered Apr 15, 2025

This is an important concern, and the enforceability of a stock subscription agreement without both parties' signatures depends on several factors, including the intent of the parties, performance under the agreement, and state law governing the contract. 1. Signatures and Enforceability Generally, for a contract to be legally binding, there must be mutual assent—that is, both parties must agree to the terms. While a signature is the most common way to show assent, a written signature by both parties is not always required to create a binding contract. If you signed the agreement and the company later accepted payment, issued shares, or otherwise began performing under the terms of the agreement, that conduct may be enough to demonstrate acceptance and create a binding agreement—even without the company’s signature. 2. Evidence of Mutual Assent Key things to consider: Did the company accept your payment or issue any form of acknowledgment? Have you received confirmation of share allocation, receipts, or account statements? Was there any written or verbal communication confirming the company’s agreement to the terms? These facts may establish that a contractual relationship exists, even if the formal document was not fully executed. 3. Risk Without Signature If the company has not yet taken any action—and there is no other evidence of acceptance—you may be in a more uncertain position. Without both parties’ signatures or performance, a court may view the agreement as incomplete or non-binding. Next Steps: Review all communication and transaction records for evidence of the company’s intent to be bound. If no performance has occurred, you may want to seek confirmation or a countersignature before proceeding further. If needed, a legal review of the agreement and context can help determine whether the contract is enforceable and what remedies may be available if there’s a dispute. I would be happy to assist with reviewing your agreement and advising you on how best to move forward.

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