Electronic Signature Act
How HelloSign complies with the Electronic Signature Act
Electronic Signatures have been around longer than the iPhone or Gmail. This legally binding technology is constantly improving the way things get done. Just as email has replaced traditional mail for most business communications, traditional pen and paper signatures are quickly being replaced by electronic signatures.
It’s been over 10 years since the ESIGN Act was put in place, giving eSignatures the same legal weight as traditional signatures. Put simply, an electronic signature is an electronic marker that indicates that a person is agreeing or approving a contract or the contents of a document.
According to the Electronic Signatures in Global and National Commerce Act, otherwise known as the "ESIGN Act", electronic signatures have the same legal standing as signatures using pen and paper. A contract or document cannot be denied its legal effect, validity, or enforceability because it’s it electronic form.
This is great news because it means that people no longer have to sign documents in-person. Using eSignatures, a person could be halfway around the world and sign a legally binding document. eSignatures have been a huge modern-day convenience for many individuals.
Laws that govern eSignatures
any customers using HelloSign can rest assured their documents are legally binding and admissible as evidence in legal proceedings. In addition to compliance with the ESIGN Act, HelloSign is also compliant the Uniform Electronic Transactions Act (UETA) and the Electronic ID and Trust Services (eIDAS) regulation designed to replace the EU Directive and set to take effect on July 1, 2016.
Under eIDAS, there will be a consistent legal framework for the acceptance of electronic signatures across all countries in the European Union for the first time in history. All eSignatures through HelloSign are considered advanced electronic signatures under eIDAS and are widely accepted as legally compliant by all 28 countries in the EU.
What's not covered?
It’s important to note that eSignatures have some limitations. There are specific exceptions in the ESIGN Act that you should be aware of. The following types of records and documents that aren’t covered include:
- Adoption and divorce paperwork
- Court orders and notices
- Wills, codicils, and trusts
- Cancellations of utility services (includes power, water, and heat)
- Notices of repossession, foreclosure, eviction, or the right to cure
- Product recalls or material failure
- Documentation that accompanies hazardous materials, pesticides, or other toxic or dangerous materials
So rest assured, eSignatures are perfectly legal in most cases, and is protected by federal law. Don’t hesitate the next time you get an eSignature request! Get started with HelloSign today!