Electronic Signatures in Global and National Commerce Act


The Electronic Signatures in Global and National Commerce Act is a United States federal law passed by the U.S. Congress to facilitate the use of electronic records and electronic signatures in interstate and foreign commerce by ensuring the validity and legal effect of contracts entered into electronically. In 2010, both Houses of Congress passed a resolution at the request of industry leaders, recognizing June 30 as "National ESIGN Day."
Although every state has at least one law pertaining to electronic signatures, it is the federal law that lays out the guidelines for interstate commerce. The general intent of the ESIGN Act is spelled out in the very first section, that a contract or signature “may not be denied legal effect, validity, or enforceability solely because it is in electronic form”. This simple statement provides that electronic signatures and records are just as good as their paper equivalents, and therefore subject to the same legal scrutiny of authenticity that applies to paper documents.

Sections from the ESIGN Act

Definitions

Sec 106 of the ESIGN Act defines:

General Intent

Consumer disclosure

Section 101 of the ESIGN Act, sub-section, preserves the rights of individuals to NOT USE electronic signatures. Here the law provides that individuals reserve the right to use a paper signature. Sub-section is in direct support of by requiring a “Consumer Disclosure” that the signatory has consented to use an electronic format.
The consumer must provide affirmative consent, meaning that it cannot be assumed that a consumer has given consent simply because he/she has not chosen the option to deny consent, or has not responded to an option to grant consent.

Retention of contracts and records

Section 101 "accurately reflects" the substance of the original record in an unalterable format, 2) is "accessible" to people who are entitled to access it, 3) is "in a form that is capable of being accurately reproduced for later reference, whether by transmission, printing or otherwise", and 4) is retained for the legally required period of time.