The U.S. Electronic Signatures in Global and National Commerce Act of 2000 was passed in order to better secure and regulate interstate and foreign commerce.
According to the act, an electronic signature holds legal significance if it satisfies the following conditions:
- A signature cannot be denied legal effect, validity or enforceability just because it is in an electronic form.
- The signing parties should have an intent to sign the document.
- The two parties must consent to do business through electronic transactions.
- The consumer must provide affirmative consent, meaning that it cannot be assumed that a consumer has given consent simply because he/she has not chosen the option to deny consent, or has not responded to an option to grant consent.
Retention of Contracts and Records
- A retained business record accurately reflects the substance of the original record in an unalterable format.
- The record should be accessible to people who are entitled to access it.
- It should be in a form that is capable of being accurately reproduced for later reference, whether by transmission, printing or otherwise.
- It should be retained for the legally required period of time.