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[BUSINESS] · United States · 2 sources

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Electronic signatures are legally binding in the US

Electronic signatures are legally binding for most business agreements in the United States under federal and state frameworks. The federal Electronic Signatures in Global and National Commerce (ESIGN) Act ensures that a contract or record cannot be denied legal effect solely because it is electronic. At the state level, the Uniform Electronic Transactions Act (UETA) has been adopted by most states, while New York operates under the Electronic Signatures and Records Act (ESRA).

For an electronic signature to be enforceable, four primary conditions must be met: the signer must intend to sign, both parties must consent to transact electronically, the signature must be associated with the specific record, and the signed record must be capable of being retained and accurately reproduced. While electronic signatures are valid for documents such as NDAs, sales agreements, and employment paperwork, they must still meet standard contract requirements regarding capacity, authority, and lawful purpose.

The digital signature market is experiencing significant growth. Grand View Research values the global market at $6.9 billion in 2025, with projections reaching $121.0 billion by 2033. North America is expected to account for 32.3% of the market revenue in 2025.

Entities

Electronic Signatures in Global and National Commerce Act · Grand View Research · Uniform Electronic Transactions Act · United States