United States Legal Framework: ESIGN and UETA

The United States established comprehensive electronic signature laws through two complementary acts. The Uniform Electronic Transactions Act (UETA), developed in 1999 and adopted by 47 states, provides uniform rules for electronic signatures in state law transactions. The Electronic Signatures in Global and National Commerce Act (ESIGN), enacted federally in 2000, ensures electronic signatures are valid for interstate and international commerce. Together, these laws create a consistent framework across the United States.

Both ESIGN and UETA establish four key requirements for valid electronic signatures. First, all parties must consent to conduct business electronically—this consent can be implicit through conduct or explicit through agreement. Second, the signature must be attributable to the person signing, whether through passwords, cryptographic keys, or other authentication methods. Third, the signed record must be retained in a form that accurately reflects the agreement and remains accessible to all parties. Fourth, the signature method must be appropriate for the transaction's circumstances.

Certain transactions remain excluded from electronic signature laws, requiring traditional wet signatures. These exceptions include wills and testamentary trusts, family law matters like divorce and adoption, court orders and official court documents, notices of foreclosure or eviction, cancellation of health or life insurance, and documents required to accompany transportation of hazardous materials. These exceptions reflect policy decisions about transactions requiring special formality or consumer protection.