The Electronic Signatures in Global National Commerce Act (ESIGN) is a U.S. federal law law that gives equal value to electronic signatures and handwritten signatures in contracts. The Electronic Signatures Act came about in response to the ever-increasing use of electronic records. As a result of this law, contracts can be signed and executed electronically. This legally binds the individual signing an electronic contract to the same responsibilities as if it had been hand-signed. By pressing the “I Accept” button, individuals also acknowledge that they understand they are signing a legal contract, and commit to all requirements outlined therein. The validity of electronic signatures is also outlined within the Electronic Signatures Act.This term is also known as the Electronic Records and Signatures in Commerce Act.
With a digital signature and a pen-and-ink signature, former President Bill Clinton signed the Electronics Signatures Act into law in 2000. Since that time, safeguards have been put into place throughout the U.S. marketplace, including personal identifiers to be used in conjunction with electronic signatures, to guard against fraudulent signatures. The Electronic Signatures Act does not require individuals to electronically sign legal contracts. Individuals may print out contracts and handwrite their signatures. Through cryptography, digital signatures are tied to an electronic contract by unique electronic identifiers correlating with the individual’s electronic signature. While written signatures can easily be duplicated, digital signatures require much more sophistication and cunning due to the electronic tie-ins. However, one of the weaknesses of ESIGN is that it lacks a clear definition of electronic signature.
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