Electronic Signatures and Legal Requirements
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What is an electronic signature?
An electronic signature or e-signature is defined as an electronic sound, symbol, or process, attached to or associated with any document and executed by a person with the intent to sign the document. An electronic signature provides the same legal standing as a handwritten signature as long as it adheres to the requirements of the specific regulation under which it was created.
What are the key laws governing eSignatures?
- Uniform Electronic Transactions Act (UETA) 1999
- Electronic Signatures in Global and National Commerce Act (ESIGN) 2000
- UETA applies to 48 US states, the District of Columbia, Puerto Rico and the Virgin Islands. Illinois and New York have similar state statutes validating electronic signatures.
- Both the United States Electronic Signatures in Global and National Commerce (ESIGN) Act, and the Uniform Electronic Transactions Act (UETA), have the following major requirements for an electronic signature to be recognized as valid under U.S. law
- Electronic Transactions Act 1999
- The EU Regulation No. 910/2014 (the eIDAS Regulation)
What are the underlying principles of these laws?
Intent to sign
Consent to do business electronically
Association of the signature with the record
e-signature
Record retention
Attribution
Identification Requirement
Reliability Requirement
The eIDAS Regulation defines three types of electronic signatures – simple, advanced, and qualified electronic signatures:
Simple Electronic Signature
Advanced electronic signature
- Is uniquely linked to the signatory.
- Is capable of identifying the signatory.
- Is created using electronic signature creation data that the signatory can, with a high level of confidence, use under his sole control.
- Is linked to the data signed therewith in such a way that any subsequent change in the data is detectable.
Qualified electronic signature
Qualified Electronic Signatures (QES)