How to create an e-signature in Microsoft Word

Method 1: Insert a Signature Line

Word's Signature Line feature creates a formal signature block — the same one you'd see at the bottom of a printed contract.

1. Open your Word document and place the cursor where the signature should appear.
2. Go to Insert › Signature Line › Microsoft Office Signature Line.
3. Fill in the suggested signer's name, title and email.
4. Click OK — Word inserts a signature line with an "X".
5. To sign, double-click the line and either type your name or click Select Image to insert a scanned signature.

This works well for low-risk internal documents, but it doesn't produce an audit trail and the signature can be removed by anyone with edit access to the file.

Method 2: Use the Draw tab

If you have a touchscreen, stylus or trackpad, the Draw tab lets you sign directly on the document.

1. Open the document and click the Draw tab in the ribbon.
2. Pick a pen and ink colour.
3. Sign in the appropriate spot.
4. Save as PDF (File › Save As › PDF) so the ink can't be erased.

Drawing produces a more personal-looking signature, but the file is still editable until you export it, and there's no record of who signed or when.

Are Word signatures legally valid in Australia?

Yes — under the Electronic Transactions Act 1999 (Cth)an electronic signature is valid if it identifies the signer, shows their intent, and the method is reliable for the purpose. A typed name or drawn signature can satisfy this for most everyday documents.

The problem is proving it later. Word doesn't capture the signer's IP address, device, timestamp, or a tamper-evident hash — the things a court or auditor wants to see if a signature is ever disputed.

When to use a dedicated e-signature platform instead

For employment contracts, leases, NDAs, supplier agreements and anything you'd be uncomfortable defending in court without evidence, a purpose-built e-signature tool is the safer choice. KoalaDoc adds:

• Tamper-evident PDFs with an audit trail on every envelope
• UTC timestamps, IP capture and signer identity verification
• Sequential signing order, witnesses and SMS access codes
• Sydney data residency and ETA 1999 compliance out of the box
• A Certificate of Completion you can hand straight to a lawyer or auditor

KoalaDoc is pay-as-you-go at $1.50 per envelope — no subscription, no per-seat fees, and the first 7 days are free.

Word vs KoalaDoc at a glance