What does the Electronic Signatures in Global and National Commerce Act aim to ensure?

The Electronic Signatures in Global and National Commerce Act (ESIGN) aims to ensure that electronic signatures are legally recognized in the same way as traditional handwritten signatures. The purpose of this act is to promote the use of electronic transactions and signatures, thereby facilitating online commerce and communication. By establishing that electronic signatures hold the same validity and enforceability as paper signatures, the act enhances the legitimacy of electronic agreements, making it easier for individuals and businesses to enter into contracts without needing to rely on paper documentation.

This recognition is crucial in a digital age where many transactions occur online, providing assurance to both parties involved in electronic transactions that their agreements are legally binding and trustworthy. The act does not stipulate that all electronic transactions must be notarized, nor does it limit electronic signatures to government contracts. Additionally, it does not suggest that paper contracts are inherently more reliable; rather, it regards electronic signatures as equally legitimate. This framework is essential for promoting efficiency and security in e-commerce and digital interactions.