Classification of Law
eSignature Legality Summary
The adoption of the Uniform Electronic Transactions Act (UETA) in most states and the passage of Electronic Signatures in Global and National Commerce Act (ESIGN) at the federal level in 2000, solidified the legal landscape for use of electronic records and electronic signatures in commerce. Both ESIGN and UETA establish that electronic records and signatures carry the same weight and legal effect as traditional paper documents and handwritten signatures, stating that a document or signature cannot be denied legal effect or enforceability solely because it is in electronic form. The Federal Rules of Evidence and the Uniform Rules of Evidence generally allow for electronic records and their reproductions to be admissible into evidence. This applies to electronic signatures stored in a computer or server, so that any printout or output readable by sight, shown to reflect the data accurately, is considered an original. In the case of an electronic signature, then, it is important to demonstrate to the satisfaction of the courts that the appropriate level and amount of information surrounding the signing process was retained, and that the system used to retain the information is itself reliable.
Use Cases That Are Not Typically Appropriate for Electronic Signatures or Digital Transaction Management
Use cases that are specifically barred from digital or electronic processes or that include explicit requirements, such as handwritten (e.g. wet ink) signatures or formal notarial process that are not usually compatible with electronic signatures or digital transaction management.
- Wills, codicils, and testamentary trusts
- Adoption, divorce agreements
- Court orders or notices, or official court documents
- Contracts or Documents governed by the Uniform Commercial Code (“UCC”)
- Notices of default, acceleration, repossession, foreclosure, or eviction regarding primary residence
- Termination of health or life insurance benefits
- Health or safety recall or material failure notices of a product
- Documentation for transportation or handling of hazardous or toxic materials
Local Technology Standards
As part of its open, technology-neutral approach to electronic signature, there are no federal laws requiring the use of specific technology for a legally enforceable electronic signature, either for digital certificates or otherwise. Some states have local requirements for state-approved digital certificates for use when transacting with that state government's institutions. Use of and enforcement of these requirements is either low or unclear, depending on the state.
DISCLAIMER: The information on this site is for general information purposes only. You use this information at your own risk. For legal advice or representation, contact a licensed attorney in your area. Laws may change quickly, so DocuSign, Inc. cannot guarantee that all the information on this form is current or correct. DOCUSIGN DOES NOT GIVE ANY EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY, SUITABILITY, OR COMPLETENESS OF THIS INFORMATION. TO THE EXTENT PERMITTED UNDER APPLICABLE LAW, NEITHER DOCUSIGN, NOR ITS AGENTS, OFFICERS, EMPLOYEES, OR AFFILIATES, ARE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES (INCLUDING PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES, LOSS OF USE OR PROFITS, OR BUSINESS INTERRUPTION), EVEN IF DOCUSIGN HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, ON ANY THEORY OF LIABILITY, WHETHER IN CONTRACT, STRICT LIABILITY, OR TORT, ARISING IN ANY WAY OUT OF THE USE OF OR INABILITY TO USE THIS INFORMATION
Last updated: May 15, 2017
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