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.
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.
| 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 |
Requirements
The four requirements for a valid electronic signature
| 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
Is it binding
Technical measures
Questions
ESIGN Act and UETA FAQ
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.