Electronic signatures have become a cornerstone of modern business operations in the United States, backed by a robust legal framework that ensures their validity and enforceability. Understanding this legal foundation is crucial for businesses looking to implement eSignature solutions with confidence.
The ESIGN Act
The Electronic Signatures in Global and National Commerce Act (ESIGN), enacted in 2000, is the federal law that established the legal validity of eSignatures:
- Ensures contracts cannot be denied legal effect solely because they're electronic
- Applies to most business and consumer transactions
- Requires clear intent to sign electronically
- Mandates consent to conduct business electronically
- Requires accurate record-keeping of transactions
The UETA Framework
The Uniform Electronic Transactions Act (UETA) provides additional state-level guidance:
- Adopted by most states
- Reinforces the validity of electronic signatures
- Emphasizes party consent to electronic transactions
- Provides consistent standards across state lines
- Complements federal ESIGN regulations
Legal Requirements for Validity
For an eSignature to be legally binding, it must meet these key criteria:
- Clear intent to sign
- Consent to conduct business electronically
- Association of signature with the record
- Retention of accurate records
- Accessibility of the signed document
Common Use Cases
eSignatures are legally valid for most business transactions, including:
- Business contracts and agreements
- Employment documents
- Consumer agreements
- Real estate transactions
- Financial documents
Limited Exceptions
While eSignatures are widely accepted, some documents still require traditional signatures:
- Wills and testamentary trusts
- Certain court documents
- Specific family law documents
- Some healthcare documents
- Certain state-specific requirements
The MyeSign Advantage
MyeSign ensures compliance with all legal requirements by providing:
- Secure and verifiable signatures
- Detailed audit trails
- Tamper-evident documents
- Long-term record retention
- Compliance with ESIGN and UETA
Ready to implement legally compliant eSignatures?
MyeSign provides the security and compliance features you need to conduct business with confidence.
Get started today or request a demo to see how MyeSign can help your business.