ESIGN

Electronic Signatures in Global and National Commerce Act

Commonly known as the E-Sign Act, this was a United States federal law passed by Congress in 2000. The main provisions of the E-Sign Act include:

• Legal validity: The Act grants legal validity to electronic signatures (eSignature), contracts, and other records related to interstate or foreign commerce, ensuring they have the same legal standing as their paper counterparts.
• Electronic signature definition: An electronic signature is an electronic sound, symbol, or process attached to or logically associated with a contract or other record and executed or adopted by a person intending to sign the record.
• Consumer consent: The Act requires businesses to obtain consumer consent before engaging in electronic transactions and to provide consumers with certain disclosures about the transaction.
• Retention of contracts: It allows the retention of electronic contracts and records, as long as they accurately reflect the information set forth in the contract or record and remain accessible to all parties.
• Preemption of state laws: The E-Sign Act preempts state laws that are inconsistent with its provisions, although states may modify, limit, or supersede the Act’s provisions in certain circumstances.

The E-Sign Act has played a significant role in facilitating the growth of e-commerce and the use of electronic signatures in business transactions. It has provided a legal framework for the validity and enforceability of electronic signatures and records, promoting the adoption of digital technologies in commercial transactions.

• Abbreviation: ESIGN