Electronic signatures, commonly referred to as digital signatures, are a quick and safe way for people and organizations to authenticate and sign documents online. To ensure that electronic signatures are valid and enforceable, it is crucial to comprehend the legal context in which they are used.
The Electronic Signatures in Global and National Trade Act (ESIGN), passed in 2000, is the law that controls electronic signatures in the US. 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.
According to the ESIGN Act, electronic signatures must:
1. Prominently displayed
The electronic signature needs to be made clear that it’s connected to the document being signed.
2. Made by a person
A person, not an automated system, must create the electronic signature.
3. Logically associated with or attached to the signed record
The electronic signature must be logically linked to or attached to the signed record, such as a PDF file or email.
4. Verifiable
An electronic signature must be able to be verified, which means it must be possible to establish both the signer’s identity and the signature’s authenticity.
Some states have their own legislation governing the use of electronic signatures in addition to the ESIGN Act. For instance, 47 states have ratified the Uniform Electronic Transactions Act (UETA), which offers additional instructions on the use of electronic signatures.
It is significant to remember that electronic signatures are not always recognized and could not be enforceable in all countries. While some nations, including Canada and Australia, have rules that are similar to the ESIGN Act, others, like Germany and France, have more stringent regulations limiting the use of electronic signatures. Before employing electronic signatures for any kind of contract or agreement, it is crucial to review the relevant laws and regulations in your country.
In conclusion, electronic signatures provide a quick and safe way to validate and sign documents online. In the United States, the ESIGN Act provides a legal foundation for the use of electronic signatures in most business transactions, but it is crucial to examine the unique rules and requirements in your country before employing electronic signatures.