On June 30, 2000, Congress enacted the Electronic Signatures in Global and National Commerce Act (the “Act”), to facilitate the use of electronic records and signatures in interstate commerce by ensuring the validity of contracts entered into electronically. The Act went into effect in October of 2000. At EZdigs, we’ve been using electronic signatures for several years now.

The Act provides that “a signature, contract, or other record related to such transaction may not be denied legal effect, validity, or enforcement solely because it is in electronic form.” 15 USC 7001 § 101(a)(1). In addition, “a contract, relating to such transaction may not be denied legal effect, validity, or enforceability solely because an electronic signature or electronic record was used in its formation.” 15 USC 7001 § 101(a)(2).

The Act defines an electronic signature as “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.” 15 USC 7001 § 106(5).

NWMLS’s purchase and sale agreements provide: “The parties acknowledge that a signature in electronic form has the same legal effect and validity as a handwritten signature.” This provision is simply an acknowledgment of the existing law to provide the buyer and the seller with notice that the agreement may be signed electronically. The Act does not require that the parties agree to use electronic signatures for those signatures to be valid.