E-Sign Act

In one sentence

Federal law allowing electronic signatures to have the same legal effect as handwritten ones.

Plain English

The E-Sign Act, passed in 2000, says that you can sign contracts electronically and they're just as valid as if you'd signed them with a pen. This applies to most contracts involving interstate commerce, though a few exceptions exist (like wills and divorce papers). The law basically removes the requirement that signatures be on paper, making digital business transactions legally binding.

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Example

When you click 'I agree' on a software license or sign a mortgage application online, the E-Sign Act ensures that electronic signature is legally enforceable and has the same weight as your handwritten signature would.

Used in a sentence

“The E-Sign Act allows companies to conduct business entirely online without requiring customers to print and mail physical documents.”

Related terms

Executed Contract

A contract where both parties have fully performed all their obligations.

Contractual Intent

The parties' mutual intention to be legally bound by their agreement.

Governing Law

The state or jurisdiction whose laws will interpret and enforce a contract.

Mutual Consent

Both parties freely agree to the same terms of a contract without pressure or misunderstanding.

Merger Clause

A contract statement that the written agreement supersedes all prior negotiations and understandings.

Offer

A proposal to enter into a binding agreement on specific terms.

Acceptance

Agreeing to the exact terms of an offer, creating a binding contract.

Consideration

Something of value exchanged by each party to make a contract binding.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.