Electronic Signatures and the Law

The rule in electronic signatures law, namely in the U.S. Code states, is that electronic signatures are legally recognized where an individual is indicating that they consent to the terms and information contained in the contents of an electronic message. 

What is an Electronic Signature?

An electronic signature is defined in the U.S. Code as "an electronic sound, symbol, or process, attached to or logically associated with a contract or other record and executed or adopted by a person with the intent to sign the record."  The electronic signature policy is aimed at the intent of the parties and is less dependant on the exact way or words used to express that intent.

Enforcing E Signatures

Generally speaking, an electronic signature however signed, is binding and enforceable under the electronic signatures policy, namely the Electronic Signatures Act.  Especially in situations where there is supporting documentation (such as an email showing intent to sign), the totality of the circumstances and documentation makes it clear under electronic signatures law that the parties have agreed to the terms and intend to be bound by the contract.

Electronic Signature Act and the Law

The Uniform Electronic Transactions Act (UETA), also referred to as the Electronic Signature Act, has been enacted by nearly every state (except Washington, Illinois and New York) and is aimed at standardizing and recognizing the validity of electronic signatures, making electronic contracts enforceable.  As with all contracts, enforceability often depends on the intent of the parties, which is often understood in context with the surrounding documentation.  If electronic communications between two parties indicate that the parties intended to create and sign a contract electronically, electronic signatures law stipulates that both the electronic signature and the contract itself are just as binding as any written contract would be.

Legal Problems with Electronic Signatures

With electronic digital signatures, common legal issues tend to arise around what kind of writing constitutes an actual signature for legal contract purposes. The electronic signature policy that has emerged in the US essentially states that any symbol, code or electronic record that is intended to be a signature will, in fact, constitute a signature sufficient to satisfy electronic signature policy in nearly every US state.

Getting Legal Help

The laws of contracts can be difficult to navigate with respect to traditional paper contracts, and that difficulty can be highlighted when electronic signatures law comes into play.  If you have questions or concerns regarding a contract and electronic signature, you should consider seeking the assistance of an attorney in your area for advice on your rights and liabilities.  By making sure you understand your rights and your responsibilities under a contract that has been electronically signed, you will be in the best position to avoid problems down the road.