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ESIGN & UETA Compliance.

The Electronic Signatures in Global and National Commerce Act: What it is, why it matters, and how Legal Signing helps you be fully compliant.

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Legal Requirements for an Electronic Signature

What is ESIGN?

The Electronic Signatures in Global and National Commerce Act (ESIGN), known as the E-Sign Act of 2000, allows electronic signatures to be legally binding where normally such a signature must be provided in writing. This ensures validity and compliance of any statute, regulation or rule of law.

What is UETA?

The Uniform Electronic Transactions Act (UETA) of 1999 ensures that electronic records and signatures are the legal equivalent of handwritten signatures on paper, making electronic commerce and transactions convenient.

Although very similar, the main difference between ESIGN and UETA is: States can adopt the UETA as they see fit, while ESIGN is federal legislation.

Together, these two electronic signature acts in the United States make e-signatures valid and legal on any forms, contracts or government documents for transactions that affect interstate or foreign commerce. They are important because they protect and legally enforce digital signatures on your contracts. Failure to comply may be treated as a withdrawal of consent and a technical violation of law.

Here's how Legal Signing fulfills the four major requirements for an electronic signature to be recognized as valid under U.S. law.

  1. Consent to Do Business Electronically

    Each Signer is required to complete a consent field that verifies they consent to doing business electronically. We also provide a Consumer Disclosure that can be placed in your Terms of Service.

  2. Association of Signature with the Record

    The activity of each Signer (notification of the need to sign, when they view the form, and their signing of the document) is tracked and associated with both their email address and IP address.

  3. Record Retention

    In addition to tracking the actions of each Signer, a certificate can be generated with the document that lists the activity of each Signer and gives both parties access and the ability to save the signed document.

  4. Intent to Sign

    This requires the site owner to make it clear when creating the form that the user has intent to sign. Legal Signing will word the default consent field checkbox label to cover the Intent to Sign.

    Note: If the user changes the checkbox label, we can’t guarantee that it is still compliant.

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