Are Electronic Signatures Legally Binding?

One of the most common questions we receive is: Are electronic signatures legally binding? The short answer is yes.

The ESIGN Act and UETA

In the United States, the Electronic Signatures in Global and National Commerce (ESIGN) Act of 2000 and the Uniform Electronic Transactions Act (UETA) establish that electronic records and signatures carry the same weight and legal effect as traditional paper documents and handwritten signatures.

What makes an e-signature valid?

• Intent to sign: The signer must demonstrate clear intent to sign the agreement.
• Consent to do business electronically: All parties must agree to conduct the transaction electronically.
• Association of signature with the record: The system used to capture the transaction must keep an associated record that reflects the process by which the signature was created.

When to use paper instead

While 99% of business transactions can be done electronically, certain documents like wills, codicils, and certain court documents still require wet-ink signatures and notarization in some jurisdictions.