ESIGN Act
The Electronic Signatures in Global and National Commerce Act (ESIGN Act) is a U.S. federal law enacted in 2000 that gives electronic signatures and records the same legal status as handwritten signatures and paper documents in interstate and foreign commerce.
What it means
The ESIGN Act ensures that no federal, state, or local law can deny the legal effect of a contract simply because it was signed electronically. It requires that signers affirmatively consent to conduct transactions electronically and that electronic records are retained in a format that can be reproduced and stored. The law preempts inconsistent state laws except where states have enacted UETA.
Why it matters for e-signatures
The ESIGN Act is the bedrock federal authority that makes SignOwl signatures legally enforceable for interstate business. It also mandates the consent and record-retention practices built into SignOwl's workflow.
Related terms
Frequently asked questions
Does the ESIGN Act cover all documents?
No. Excluded categories include wills, court orders, notices of cancellation of utilities, foreclosure notices, and certain notices related to health and safety.
Do both parties need to agree to use e-signatures under ESIGN?
Yes. The ESIGN Act requires that each party consents to conduct transactions electronically before an e-signature is legally valid under the act.
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