Are electronic signatures legal?

The two laws behind e-signatures

The ESIGN Act is federal law, signed in 2000. It covers any transaction in or affecting interstate or foreign commerce, which reaches most of what businesses do. UETA is a model state law, approved by the Uniform Law Commission in 1999 and adopted by every state except New York. New York has its own law, the Electronic Signatures and Records Act, which gives an electronic signature the same validity as one signed by hand.

That definition is broad on purpose. A typed name, a drawn signature or a click on a sign button can all count. What makes it a signature is the intent to sign, not the method. Our guide to electronic vs digital signatures covers how that differs from certificate-based signing.

What makes an e-signature hold up

The laws settle that the medium doesn't matter. They don't settle whether a particular person signed a particular document. That still comes down to evidence. Four things carry the weight:

• Intent to sign. The signer took a deliberate action, like adopting a signature and pressing a button that says they're signing.
• Agreement to do business electronically. UETA applies only between parties who agreed to it, and a party who agreed once can refuse the next time (UETA Section 5).
• Attribution. A signature belongs to a person if it was their act, which "may be shown in any manner," including the security procedure used (UETA Section 9). Access codes, emailed links and a log of each step help here.
• A record that keeps. Where a law requires keeping a record, an electronic copy works if it accurately reflects the information and stays accessible for later reference (UETA Section 12).

Consumer consent under ESIGN

When a law requires you to give a consumer information in writing, ESIGN adds a step before an electronic copy counts. The consumer has to affirmatively consent, after a clear notice that explains:

• their right to get the record on paper, and how to ask for a paper copy and whether there's a fee;
• their right to withdraw consent, and what happens if they do;
• whether the consent covers one transaction or a broader category of records;
• how to withdraw consent and update their contact information;
• the hardware and software they need to open and keep the records.

They also have to consent electronically in a way that shows they can actually open the records. See consent to electronic records for more.

What you can't sign electronically

ESIGN doesn't apply to these, and most states exclude similar documents under UETA:

• Wills, codicils and testamentary trusts.
• Adoption, divorce and other family law matters.
• Most of the Uniform Commercial Code (sales and leases of goods under Articles 2 and 2A stay covered).
• Court orders, notices and official court documents.
• Notices of utility shutoff; default, repossession, foreclosure or eviction on a primary residence; cancellation of health or life insurance; and product recalls that risk health or safety.
• Documents that must travel with hazardous materials.

States add their own exclusions, and some documents need a notary whatever the signature method. Check e-signature laws by state, and see remote online notarization for documents that need a notary.

Outside the US

The European Union's eIDAS Regulation sets three levels: simple, advanced and qualified electronic signatures. Only a qualified electronic signature, made with a qualified certificate and device, automatically has the same legal effect as a handwritten one. Other countries have their own rules, so check before you sign across borders.

How SignMaster keeps the evidence

No tool can promise that a signature will hold up in a dispute. What a tool can do is collect the evidence the law cares about. Each document you send with SignMaster goes out as an envelope: one or more documents going to one or more signers.

• Consent first. Before signing, each signer checks a box agreeing to use electronic records and signatures, with a link to the full e-signature disclosure. They can decline instead.
• A clear act of signing. Signers draw, type or upload their signature, then select Adopt and sign, which states that it's their electronic signature.
• Optional access codes. Require a code you share, or a one-time code sent to the signer's email, before they can open the document.
• A certificate of completion. It records each signer's name, email, IP address, device, and when they viewed, consented and signed, plus a SHA-256 fingerprint of each original file.
• A copy for everyone. Every signer gets the signed PDF by email when the last person signs.