About eSigning

The ESIGN Act is a federal U.S. law passed in 2000 which confirmed that electronic signatures are legal and binding for nearly every business and transaction, provided that they meet a few basic requirements. Below, we've summarized these requirements and described how Outlaw helps you ensure that they are met in your contracts. And if you want access to the U.S. legislation in its entirety, we've reproduced the full contents of the law on the "Full" tab.

Consent to do business electronically

When signing an electronic document, you must explicitly agree to do so in the first place. Outlaw requires this box to be checked prior to eSigning, which is probably how you made your way to this page!

(1)

CONSENT TO ELECTRONIC RECORDS— Notwithstanding subsection (a), if a statute, regulation, or other rule of law requires that information relating to a transaction or transactions in or affecting interstate or foreign commerce be provided or made available to a consumer in writing, the use of an electronic record to provide or make available (whichever is required) such information satisfies the requirement that such information be in writing if—

(A) the consumer has affirmatively consented to such use and has not withdrawn such consent;

(B) the consumer, prior to consenting, is provided with a clear and conspicuous statement—

(i) informing the consumer of (I) any right or option of the consumer to have the record provided or made available on paper or in nonelectronic form, and (II) the right of the consumer to withdraw the consent to have the record provided or made available in an electronic form and of any conditions, consequences (which may include termination of the parties’ relationship), or fees in the event of such withdrawal;

(ii) informing the consumer of whether the consent applies (I) only to the particular transaction which gave rise to the obligation to provide the record, or (II) to identified categories of records that may be provided or made available during the course of the parties’ relationship;

(iii) describing the procedures the consumer must use to withdraw consent as provided in clause (i) and to update information needed to contact the consumer electronically; and

(iv) informing the consumer (I) how, after the consent, the consumer may, upon request, obtain a paper copy of an electronic record, and (II) whether any fee will be charged for such copy;

Intent to sign

Electronic signatures, like pen-and-paper signatures, are valid only if you intended to sign and the signing process was clearly understood. On Outlaw, a signer must first click "Sign" in order to express this intent and expose the eSigning interface.

(ii) consents electronically, or confirms his or her consent electronically, in a manner that reasonably demonstrates that the consumer can access information in the electronic form that will be used to provide the information that is the subject of the consent; and

(5)

ELECTRONIC SIGNATURE— The term ‘‘electronic signature’’ means an electronic sound, symbol, or process, attached to or logically associated with a contract or other record and executed or adopted by a person with the intent to sign the record.

Association of the signature with the record

The system used to capture the transaction must keep an associated record that reflects the process by which the signature was created, or generate a textual or graphic statement (which is added to the signed record) proving that it was executed with an electronic signature. Outlaw lets you sign a document by either drawing your signature (via touchscreen or mouse) or by typing it. In both cases, a read-only snapshot of the signature is stored as part of the document being signed, and included on the final, fully executed PDF.

(4)

ELECTRONIC RECORD— The term ‘‘electronic record’’ means a contract or other record created, generated, sent, communicated, received, or stored by electronic means.

(9)

RECORD— The term ‘‘record’’ means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.

Attribution

The electronic signature must be attributable to the person who is signing. When you sign a document on Outlaw, you receive a copy of your signed document and we keep a full audit trail, including signer email ID, device IP and signature timestamp.

(h)

ELECTRONIC AGENTS— A contract or other record relating to a transaction in or affecting interstate or foreign commerce may not be denied legal effect, validity, or enforceability solely because its formation, creation, or delivery involved the action of one or more electronic agents so long as the action of any such electronic agent is legally attributable to the person to be bound.

Record retention

The electronically signed document must be capable of retention and accurate reproduction for reference by all parties. Outlaw holds the original, signed documents securely for its users using industry-standard encryption at rest and SSL encryption during transit. You can download the signed document as a PDF on your device or store it in your Outlaw account.

(1)

ACCURACY AND ACCESSIBILITY— If a statute, regulation, or other rule of law requires that a contract or other record relating to a transaction in or affecting interstate or foreign commerce be retained, that requirement is met by retaining an electronic record of the information in the contract or other record that—

(A) accurately reflects the information set forth in the contract or other record; and

(B) remains accessible to all persons who are entitled to access by statute, regulation, or rule of law, for the period required by such statute, regulation, or rule of law, in a form that is capable of being accurately reproduced for later reference, whether by transmission, printing, or otherwise.

(2)

EXCEPTION— A requirement to retain a contract or other record in accordance with paragraph (1) does not apply to any information whose sole purpose is to enable the contract or other record to be sent, communicated, or received.

(3)

ORIGINALS— If a statute, regulation, or other rule of law requires a contract or other record relating to a transaction in or affecting interstate or foreign commerce to be provided, available, or retained in its original form, or provides consequences if the contract or other record is not provided, available, or retained in its original form, that statute, regulation, or rule of law is satisfied by an electronic record that complies with paragraph (1).

(4)

CHECKS— If a statute, regulation, or other rule of law requires the retention of a check, that requirement is satisfied by retention of an electronic record of the information on the front and back of the check in accordance with paragraph (1).

Important note

The ESIGN Act does not apply to certain types of documents. If you're unsure about whether you can eSign a particular document, we recommend consulting a lawyer!

(a)

EXCEPTED REQUIREMENTS— The provisions of section 101 shall not apply to a contract or other record to the extent it is governed by—

(1) a statute, regulation, or other rule of law governing the creation and execution of wills, codicils, or testamentary trusts;

(2) a State statute, regulation, or other rule of law governing adoption, divorce, or other matters of family law; or

(3) the Uniform Commercial Code, as in effect in any State, other than sections 1–107 and 1–206 and Articles 2 and 2A.

(b)

ADDITIONAL EXCEPTIONS— The provisions of section 101 shall not apply to—

(1) court orders or notices, or official court documents (including briefs, pleadings, and other writings) required to be executed in connection with court proceedings;

(2) any notice of—

(A) the cancellation or termination of utility services (including water, heat, and power);

(B) default, acceleration, repossession, foreclosure, or eviction, or the right to cure, under a credit agreement secured by, or a rental agreement for, a primary residence of an individual;

(D) recall of a product, or material failure of a product, that risks endangering health or safety; or

(3) any document required to accompany any transportation or handling of hazardous materials, pesticides, or other toxic or dangerous materials.

(c)

REVIEW OF EXCEPTIONS—

(1) EVALUATION REQUIRED— The Secretary of Commerce, acting through the Assistant Secretary for Communications and Information, shall review the operation of the exceptions in subsections (a) and (b) to evaluate, over a period of 3 years, whether such exceptions continue to be necessary for the protection of consumers. Within 3 years after the date of enactment of this Act, the Assistant Secretary shall submit a report to the Congress on the results of such evaluation.

(2) DETERMINATIONS— If a Federal regulatory agency, with respect to matter within its jurisdiction, determines after notice and an opportunity for public comment, and publishes a finding, that one or more such exceptions are no longer necessary for the protection of consumers and eliminating such exceptions will not increase the material risk of harm to consumers, such agency may extend the application of section 101 to the exceptions identified in such finding.