In the United States, a federal law known as the Electronic Signatures in Global and National Trade Act (ESIGN) was passed in 2000. The ESIGN Act establishes a legal foundation for the use of electronic signatures on contracts, agreements, and other legal documents in the majority of commercial activities. As long as they comply with specified standards, the Act provides that electronic signatures have the same legal validity and enforceability as conventional, ink-signed papers.
Any sort of electronic record or signature that is generated, saved, or communicated during a transaction in interstate or international commerce is covered by the ESIGN Act. This applies to documents and signatures made electronically using computers, mobile devices, and other technologies.
This broad definition allows for a wide range of electronic signature technologies, including certificate-based signatures, biometric signatures, and hash-based signatures. The Act defines an electronic signature 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 ESIGN Act provides a number of prerequisites in order for electronic signatures to be enforceable and legally binding. These prerequisites consist of:
- Display in a way that is obvious that the electronic signature is connected to the paper being signed.
- Created by a person: A human being, not an automated system, must create the electronic signature.
- The electronic signature must be physically attached to or logically linked to the signed record, such as a PDF file or email, in order for it to be valid.
- Verifiable: An electronic signature must be able to be validated, which means it must be possible to establish both the signer’s identity and the signature’s authenticity.
The ESIGN Act also grants customers who utilize electronic signatures certain rights and protections in addition to these obligations. For instance, the Act mandates that companies inform customers of their rights and responsibilities in accordance with the Act and give them the option to obtain a paper copy of any electronic data.
In conclusion, the ESIGN Act is a federal law that establishes a legal foundation for the use of electronic signatures in the majority of business transactions in the United States. According to the Act, electronic signatures are equally enforceable and valid as traditional ink signatures as long as they adhere to a number of conditions, such as being clearly visible, created by a person, attached to or logically related to the signed record, and verifiable. The Act also grants users of electronic signatures certain rights and protections.