The legal implications of electronic signatures have drawn public and legal attention as more parties contract over the Internet, agreeing to terms with the single click of a mouse.
In 2000 Congress passed the Electronic Signatures in Global and International Commerce Act (ESGICA), under Title 15 U.S.C. Chapter 96 (sections 7001-7031), which made electronic signatures as binding as traditional signatures. By making “e-signatures” legally equivalent to paper signatures, ESGICA introduced a new mode of conducting business – the “e-contract.” California, along with 46 other states, has adopted the Uniform Electronic Transactions Act, under California Civil Code §§ 1633.11-1633.17, which governs state law surrounding electronic contracts.
An electronic contract, often called an “e-contract,” exists entirely in electronic form. Parties create and sign the agreement online, without the need to produce hard copies. For example, two parties may correspond over email to create the terms of an agreement and sign the contract after finalization.