subject: Legal Significance of Electronic Signatures [print this page] General application of the Statute of Frauds to contractual agreements has been the cornerstone of contract law in United States. With the emergence of e-commerce and other types of contractual relationships, the legal aspects of these new types of contracts bring a host of questions. The most notable obstacle in electronic commerce is regarding what constitutes a valid signature. The problem with the traditional concept of Statute of Frauds is how to determine the enforceability of a contract in e-commerce.
Various forms of legislation define and describe electronic signatures and their enforceability. The Electronic Signatures in Global and National Commerce Act (E-Sign) and The Uniform Electronic Transactions Act (UETA) made electronic signatures legally valid and equivalent in law to traditional paper signatures. The law clearly defines an electronic signature as "an electronic sound, symbol, or process attached to or associated with, an electronic record and executed or adopted by a person with the intent to sign the record." The law outlines a two step process to sign files, documents, or contracts electronically. First, the consumer may receive a disclosure of the consumer's right to use paper, which is followed by consent to the electronic process. The second phase is the actual capture of the electronic signature. An electronically signed document or contract is admissible in court as an evidence.
Apart from the USA, other countries around the globe have also given consent and legal validity to electronic signatures. The use of electronic signature technology has made business processes faster, more secure, and more effective. More and more companies are discovering the benefits of this revolutionary technology and experiencing the benefits. Contracts are finalized quickly, without the use of paper documents, circumventing fax and saving time.
