Introduction

In short, yes! Electronic signatures are the most common way to sign documents online today. To learn more about electronic signatures, read on.

Electronic signatures are legally binding in the United States under certain conditions that include an intent to sign, consent to electronic transaction, association of electronic signature with the agreement or record, clear attribution, and retention of records. The Uniform Electronic Transactions Act (UETA) and the Electronic Signature in Global and National Commerce (ESIGN) Act are two laws governing electronic signatures in the United States. ESIGN and UETA confirm that electronic signatures constitute legally binding documents if all parties choose to sign digitally. Electronic signatures are valid in all U.S. states and are granted the same legal status as handwritten signatures under state laws. The security features of electronic signatures make them more reliable and admissible in court than traditional paper-based signatures.

When is a signature legally binding?

U.S. law recognizes valid electronic signatures when they comply with certain standards:

1. Intent to sign: The validity of electronic signatures, like traditional signatures, depends on the intention of the parties involved to adopt the terms associated with the signature. In other words, it is not legally binding if one party tricks the other into signing something they had no intention of signing
2. Consent to electronic transaction: The use of electronic signatures and records requires the consent of both parties, which must be given after receiving adequate information about the process, such as the statement "By clicking here, you agree to the terms of this document."
3. Linking the electronic signature and the agreement: The electronic signature must be linked explicitly with the corresponding record, contract or agreement
4. Attribution: The signature must be identifiable to the individual who created it.
5. Document Retention Policies: Each party involved in an electronically-signed agreement or statement must have access to its records and possess the capability to produce an accurate reproduction of the document(s) for future reference

What laws govern electronic signatures?

In the United States, two laws govern electronic signatures: the Uniform Electronic Transactions Act (UETA) and the Electronic Signature in Global and National Commerce (ESIGN) Act. The UETA is a model law that most states have adopted, while New York has its own statutes. The UETA covers business, commercial, and governmental matters but not wills, trusts, or family law matters. The ESIGN Act affirms the legal validity of electronic signatures and sets the requirements for them to be legally binding. However, it also only covers business, commercial, and governmental matters, meaning that ink signatures may still be required for certain legal procedures, such as estate and family law matters, court documents, foreclosure notices, and safety recall notices.

Are there exceptions to electronic signatures?

Yes, there are certain documents that cannot be signed electronically or require wet signatures. As outlined by the National Telecommunications Information Administration (NTIA), electronic signatures are not legally valid when signing: 

• Wills and trusts related to inheritance
• State laws regulating family-related matters such as divorce and adoption
• Court orders or documents that are legally binding
• Notification of service termination for utilities
• Notice of foreclosure, eviction, or default for an individual's primary residence
• Termination notice for life or health insurance policies
• Recall notices for products that may pose significant health or safety risks
• Any legal document required for transportation of toxic substances or pesticides.

When in doubt, please contact a lawyer for any legal advice or assistance.