Agreement to Electronic Signature: Understanding the Legality of Digital Signatures

With the increasing use of technology in businesses and society in general, electronic signatures are becoming more prevalent. An electronic signature, also known as a digital signature, is a legal way to sign electronic documents. While electronic signatures may seem new, they have been recognized as legally binding since 2000 by the Electronic Signatures in Global and National Commerce Act (ESIGN) and the Uniform Electronic Transactions Act (UETA).

What is an Electronic Signature?

An electronic signature is a way to sign an electronic document using a digital symbol or code that is unique to the signer. This digital signature is associated with the document and the identity of the person who provided it. Electronic signatures can be created using a variety of methods, including electronic signature software, digital certificates, and biometric authentication like facial recognition or fingerprints.

Legality of Electronic Signatures

In the United States, electronic signatures are legally binding as long as certain requirements are met. These requirements include:

1. Consent: All parties involved must agree to use electronic signatures.

2. Intent to Sign: The signer must have the intention to sign the document.

3. Identification: The signer must be identified and connected to their electronic signature.

4. Record Retention: The electronic signature and the associated document must be retained for a specific period.

5. Reliability: The method used to create the electronic signature must be reliable and secure.

Advantages of Electronic Signatures

One of the most significant advantages of electronic signatures is the speed and convenience they offer. Documents can be signed and executed in a matter of minutes, rather than days or weeks. Additionally, electronic signatures can save money and resources by eliminating the need for paper documents, printing and postage. They also provide a level of security, as electronic signatures are harder to forge or tamper with than traditional signatures.

Challenges and Considerations

While electronic signatures offer many advantages, there are still some challenges and considerations to keep in mind. These include:

1. Security: Digital signatures rely on technology, which can be vulnerable to cyber attacks or data breaches.

2. Compliance: Different industries and jurisdictions may have specific regulations or requirements that must be followed when using electronic signatures.

3. User Experience: Some people may not be familiar with electronic signatures and may need additional training or support to use them effectively.


Agreement to electronic signature is a legal way to sign electronic documents and is recognized as such by the ESIGN and UETA. Electronic signatures offer many advantages including speed, convenience, and cost savings. However, it is important to keep security, compliance, and user experience considerations in mind when implementing electronic signatures. Overall, electronic signatures are a useful tool for businesses and individuals to streamline their document signing processes.