Regardless of the current law, the parties can freely negotiate the terms of an electronic contract. Therefore, it is only appropriate to use electronic signatures for contracts that have proven to be permissive, and it is necessary to review contracts carefully before electronic signatures are transmitted.
A contract will have the same effect as a wet ink signature or a physical record, as long as it contains language permitting or prohibiting electronic signatures. Parties are generally free to negotiate whether electronic signatures are appropriate for contracts, regardless of applicable law. To confirm whether e-signature and record-keeping are allowed, review the specific terms and conditions of the contract or agreement before exchanging signatures. An agreement can stipulate that a digital or electronic signature or record is equivalent to a physical or wet ink signature. In practice, this lets the parties get their consent. In addition, parties may agree that an electronic version of a contract, or the electronic digital storage of a contract, is valid by including particular contractual language.
The federal and state electronic transaction laws were put forward in 2000; federal legislation is known as the Electronic Signatures in Global and National Commerce Act. It established that most e-contracts and electronic signatures were as legal and enforceable as their paper counterparts. State laws similarly established e-signature validity to federal law, either by adopting the Uniform Electronic Transactions Act (UETA) or passing statewide e-signature laws. Since most e-contracts and e-signatures are already subject to federal and state laws, they are valid regardless of where the parties reside or the contract is to take effect. The United States ESIGN act has four requirements for e-signatures, which are as follows:
The intent of parties to sign
Consent of conducting business on an electronic platform
Association of the signature to the record
possession of records
An e-contract or agreement has a factor, which determines the validity of an e-contract:
Laws governing the contract or agreement.
The parties to the contract agree to e-signatures and the delivery of terms of the contract or agreement.
The subject matter includes negotiating instruments, investment in securities, wills, adoptions, divorces, transfers of real estate, and court orders between parties.
Authority of the parties in the documents.
Applicability according to the requirement of norms of government agencies.
Therefore, the requirement of the validity of an e-contract or agreement is the same as a regular contract.
Methods for transactions
Methods for conducting transactions that constitute a valid e-contract or agreement in the United States are as follows:
Signing and scanning approach
Commercial third-party applications
Attaching picture of the signature
Indication of intention through emails or other electronic platforms
Therefore, all these methods constitute a valid e-contract or agreement between the parties.
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