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E-Signature Technologies

Today, numerous technologies allow electronic documents to be signed. An e-signature has been defined as an electronic sound, symbol, or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.19 Thus, e-signatures include encrypted digital signatures, names (intended as signatures) at the end of e-mail messages, and clicks on a Web page if the click includes some means of identification.

Federal Law on E-Signatures and E-Documents

In 2000, Congress enacted the Electronic Signatures in Global and National Commerce Act (E-SIGN Act),20 which provides that no contract, record, or signature may be denied legal effect solely because it is in electronic form. In other words, under this law, an electronic signature is as valid as a signature on paper, and an e-document can be as enforceable as a paper one. For an e-signature to be enforceable, the contracting parties must have agreed to use electronic signatures. For an electronic document to be valid, it must be in a form that can be retained and accurately reproduced. The E-SIGN Act does not apply to all types of documents. Contracts and documents that are exempt include court papers, divorce decrees, evictions, foreclosures, health-insurance terminations, prenuptial agreements, and wills. Also, the only agreements governed by the UCC that fall under this law are those covered by Articles 2 and 2A (sales and lease contracts) and UCC 1107 and 1206. Despite these limitations, the E-SIGN Act significantly expanded the possibilities for contracting online.