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US law

ESIGN Act and UETA Explained for Business Teams

The ESIGN Act and UETA are the two US laws that give electronic signatures the same legal effect as handwritten ones. A contract cannot be denied validity only because it was signed electronically, provided four requirements are met.

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The two laws

A federal act and a uniform state law

The Electronic Signatures in Global and National Commerce Act, known as the ESIGN Act, was signed on June 30, 2000 and took effect on October 1, 2000. It is codified at 15 U.S.C. 7001 and the sections that follow, and it applies to transactions in or affecting interstate or foreign commerce.

The Uniform Electronic Transactions Act, UETA, was approved by the Uniform Law Commission in 1999. It has been adopted by 49 states, the District of Columbia, Puerto Rico and the US Virgin Islands. New York relies on its own Electronic Signatures and Records Act (ESRA).

Both laws rest on the same rule. A signature, contract or record may not be denied legal effect or enforceability solely because it is in electronic form.

Operations manager reviewing a carrier contract on a laptop while a colleague checks a printed copy

Definition

Electronic signature
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.

Source, 15 U.S.C. 7006(5). UETA section 2(8) uses almost the same words.

ESIGN Act compared with UETA
Point ESIGN Act UETA
Type of law Federal statute Uniform state law, enacted state by state
Year 2000 1999
Where it applies Interstate and foreign commerce across the United States 49 states, the District of Columbia, Puerto Rico and the US Virgin Islands
Citation 15 U.S.C. 7001 to 7031 The statute of each adopting state
Core rule No denial of legal effect solely because a record or signature is electronic The same rule, in section 7
Agreement of the parties Does not require anyone to use electronic records Applies only when the parties agreed to transact electronically, judged from context
Consumer disclosures Detailed consent procedure in section 7001(c) Left to other state consumer law
Record retention Section 7001(d), accurate and accessible for later reference Section 12, accurate and accessible for later reference
Where a state has enacted UETA as approved by the Uniform Law Commission, section 7002 of the ESIGN Act lets that state law apply in place of the general federal rule.

Requirements

The four requirements for a valid electronic signature

ESIGN Act and UETA requirements and how the product records them
Requirement What the law asks What SignElectronically records
Intent to sign The person must mean to sign, as with a pen An explicit Sign action on a field assigned to that signer, logged with a UTC timestamp
Consent to do business electronically The parties agree to use electronic records, with extra disclosure steps for consumers A separate consent step before signing, stored as its own event
Attribution The signature must be attributable to the person, shown by any reasonable means A personal signing link per email address, IP address and browser, and a one time code on Plus and above
Record retention The record must stay accurate and be reproducible for everyone entitled to it A sealed PDF with the audit certificate sent to all parties and kept in your account

The certificate that carries this evidence is described on the electronic signature audit trail page, and any recipient can check a sealed file on the verify page without an account. Every plan on pricing includes both.

Exclusions

Documents the ESIGN Act does not cover

  • Wills, codicils and testamentary trusts
  • Adoption, divorce and other matters of family law
  • Court orders, notices and official court documents such as briefs and pleadings
  • Most of the Uniform Commercial Code, other than sales and leases under Articles 2 and 2A
  • Notices of cancellation or termination of utility services
  • Notices of default, acceleration, repossession, foreclosure or eviction for a primary residence
  • Notices of cancellation of health insurance or life insurance benefits
  • Product recall notices and documents that must accompany hazardous materials

These exclusions are listed in 15 U.S.C. 7003. UETA has a shorter list of its own, and other state or federal rules may still allow or require a particular form for these documents.

Ordinary business paperwork sits outside the exclusions. Sales contracts, NDAs, offer letters, statements of work, vendor agreements, purchase orders and most leases can be signed electronically.

This page is general information and not legal advice. If a document is unusual or high value, ask your counsel which form the governing law expects.

Beyond the United States

Signing with parties in other countries

European Union

The EU uses the eIDAS Regulation with three signature levels. Read the eIDAS guide for how they map to our plans.

Is it binding

For the short answer by document type and region, see is an electronic signature legally binding.

Technical measures

Sealing, hashing and access control are described on the security page, without certificates we do not hold.

Questions

ESIGN Act and UETA FAQ

The ESIGN Act is a federal statute from 2000 that covers transactions in interstate and foreign commerce. UETA is a model state law from 1999 that each state adopts on its own. They say nearly the same thing, and where a state has adopted UETA as written, that state law governs in place of the general ESIGN rule.

Sign a PDF and read the certificate

Use the demo on the homepage to sign one document and see the consent step, the audit trail and the seal.