One of the developing area of contract law are Electronic contracts and electronic signatures. Many people are surprised to learn that these are just as legal and enforceable as paper contracts due to Federal legislation enacted in 2000, known as the Electronic Signatures in Global and International Commerce Act (ESGICA)
This 2000 legislation is great news for companies that conduct business online, particularly companies that provide financial, insurance, and household services to consumers. The law also benefits B2Bs (business-to-business websites) who need enforceable agreements for ordering supplies and services. This law also helps small businesses conduct business entirely online.
What Are Electronic Contracts:
This is agreement created and "signed" online without any paper being involved. For example, you write a contract on your computer and email it to a business associate, and the business associate emails it back with an electronic signature indicating acceptance. One form of electronic contract is a "Click to Agree" contract, this type of contract is usually used when downloaded software is involved: The user clicks an "I Agree" button on a page containing the terms of the software license before the transaction can be completed.
On electronic contracts, people use several types of signature, these include typing the signer's name into the signature area, pasting in a scanned version of the signer's signature, clicking an "I Accept" button, or using cryptographic "scrambling" technology.
Even if electronic contracts have been involved at some point, there is always the option of switching to paper contracts if doing so becomes more desirable.
Even though electronic signatures are now widely accepted there are still some areas where people CANNOT use electronic signatures in order to prevent possible abuse. These include:
1. documents relating to adoption, divorce, and other family law matters
2. wills, codicils, and testamentary trusts
3. notices of cancellation or termination of utility services
4. court orders, notices, and other court documents such as pleadings or motions
5. notices of default, repossession, foreclosure, or eviction
6. notices of cancellation or termination of health or life insurance benefits
7. product recall notices affecting health or safety, and
8. documents required by law to accompany the transportation of hazardous materials.
This 2000 legislation is great news for companies that conduct business online, particularly companies that provide financial, insurance, and household services to consumers. The law also benefits B2Bs (business-to-business websites) who need enforceable agreements for ordering supplies and services. This law also helps small businesses conduct business entirely online.
What Are Electronic Contracts:
This is agreement created and "signed" online without any paper being involved. For example, you write a contract on your computer and email it to a business associate, and the business associate emails it back with an electronic signature indicating acceptance. One form of electronic contract is a "Click to Agree" contract, this type of contract is usually used when downloaded software is involved: The user clicks an "I Agree" button on a page containing the terms of the software license before the transaction can be completed.
On electronic contracts, people use several types of signature, these include typing the signer's name into the signature area, pasting in a scanned version of the signer's signature, clicking an "I Accept" button, or using cryptographic "scrambling" technology.
Even if electronic contracts have been involved at some point, there is always the option of switching to paper contracts if doing so becomes more desirable.
Even though electronic signatures are now widely accepted there are still some areas where people CANNOT use electronic signatures in order to prevent possible abuse. These include:
1. documents relating to adoption, divorce, and other family law matters
2. wills, codicils, and testamentary trusts
3. notices of cancellation or termination of utility services
4. court orders, notices, and other court documents such as pleadings or motions
5. notices of default, repossession, foreclosure, or eviction
6. notices of cancellation or termination of health or life insurance benefits
7. product recall notices affecting health or safety, and
8. documents required by law to accompany the transportation of hazardous materials.
