Every time you click “I agree” on a website, sign a contract with your finger on a tablet, or notarize a document through a video call, you are relying on two laws you have probably never heard of. These laws are the Uniform Electronic Transactions Act (UETA) and the Electronic Signatures in Global and National Commerce Act (ESIGN Act).
Together, these two pieces of legislation form the legal foundation that makes digital notarization and electronic signatures possible in the United States. Without them, that e-signed lease agreement or remotely notarized power of attorney would have no legal standing.
This guide explains both laws in simple terms, shows you how they work together, clarifies when each one applies, and walks through what this means for everyday consumers and businesses using electronic notarization.
The Problem These Laws Solved
Before 1999, American law had a significant gap. Traditional contract law was built around paper documents and handwritten signatures. If a law said a contract had to be “in writing” or required a “signature,” courts interpreted that to mean actual paper and actual ink.
This created chaos as the internet grew. Businesses wanted to conduct transactions online, but there was no clear answer about whether electronic contracts would hold up in court. Different states had different rules. Some states passed their own electronic signature laws. Others had no rules at all. A contract valid in California might be questioned in New York.
The mortgage industry, financial services, and basic commerce all needed clarity. Two laws emerged to fix this: UETA in 1999 and the ESIGN Act in 2000.
Understanding UETA: The State-Level Framework
The Uniform Electronic Transactions Act was completed in 1999 by the National Conference of Commissioners on Uniform State Laws, the same organization that creates model laws like the Uniform Commercial Code. UETA is a “uniform” or “model” law, meaning it was drafted as a template for states to adopt.
The core principle of UETA is straightforward: an electronic signature or electronic record cannot be denied legal effect simply because it is electronic. If a law requires a written document, an electronic record satisfies that requirement. If a law requires a signature, an electronic signature satisfies that requirement.
How Many States Have Adopted UETA?
As of 2025, 49 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands have adopted some version of UETA. Only New York has not adopted UETA, though New York has its own similar law called the Electronic Signatures and Records Act (ESRA) that serves the same purpose.
Illinois and Washington were late adopters. Washington enacted UETA effective June 11, 2020, replacing its earlier digital signature statute. Illinois has its own Electronic Commerce Security Act from 1998, which takes a similar approach but includes some notable differences, such as distinguishing between types of electronic signatures and designating “secure electronic signatures” as having higher evidentiary weight.
Here is an important detail: while UETA is called “uniform,” the versions adopted by different states are not identical. States can modify UETA when they adopt it, and many have added provisions or exceptions specific to their jurisdictions.
What UETA Actually Says
UETA’s key provisions establish several principles that govern electronic commerce:
Legal Recognition (Section 7) – A record or signature cannot be denied legal effect or enforceability solely because it is electronic. A contract cannot be denied legal effect solely because an electronic record was used in its formation. If a law requires a writing, an electronic record satisfies that law. If a law requires a signature, an electronic signature satisfies that law.
Consent Requirement (Section 5) – UETA only applies when all parties have agreed to conduct the transaction electronically. This agreement can be explicit or inferred from the circumstances and the parties’ conduct.
Attribution (Section 9) – An electronic signature is attributable to a person if it was the act of that person. This can be shown through security procedures or other evidence.
Notarization Provision (Section 11) – This is crucial for digital notarization. Section 11 states that if a law requires a signature or record to be notarized, acknowledged, verified, or made under oath, that requirement is satisfied if the electronic signature of the authorized person (the notary), together with all other required information, is attached to or logically associated with the record. This effectively allows notaries to act electronically and removes traditional stamp and seal requirements when proper electronic equivalents are used.
Record Retention (Section 12) – If a law requires a record to be retained, an electronic record satisfies that requirement as long as it accurately reflects the information and remains accessible.
Understanding the ESIGN Act: The Federal Framework
The Electronic Signatures in Global and National Commerce Act was signed into law by President Clinton on June 30, 2000, and took effect on October 1, 2000. Unlike UETA, which is state law, ESIGN is federal law codified at 15 U.S.C. Sections 7001-7031.
ESIGN was created to resolve potential disputes between different state laws and to ensure that electronic signatures would be valid for interstate and foreign commerce. Congress wanted to remove barriers to electronic commerce on a national level.
Core Principles of the ESIGN Act
The ESIGN Act’s fundamental rules mirror those of UETA:
A signature, contract, or other record relating to a transaction in or affecting interstate or foreign commerce cannot be denied legal effect, validity, or enforceability solely because it is in electronic form.
A contract relating to such a transaction cannot be denied legal effect, validity, or enforceability solely because an electronic signature or electronic record was used in its formation.
The ESIGN Definition of Electronic Signature
Under ESIGN, an electronic signature is defined 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.”
This definition is intentionally broad. It covers typing your name in an email, clicking an “I Accept” button, drawing your signature with a mouse or stylus, using a scanned image of your signature, or using sophisticated digital certificates with encryption.
ESIGN’s Notarization Provision
Section 101(g) of the ESIGN Act directly addresses notarization: “If a statute, regulation, or other rule of law requires a signature or record relating to a transaction in or affecting interstate or foreign commerce to be notarized, acknowledged, verified, or made under oath, that requirement is satisfied if the electronic signature of the person authorized to perform those acts, together with all other information required to be included by other applicable statute, regulation, or rule of law, is attached to or logically associated with the signature or record.”
This provision is critical. It establishes at the federal level that electronic notarization satisfies legal requirements for notarization in transactions affecting interstate or foreign commerce.
How UETA and ESIGN Work Together
Many people assume that because ESIGN is federal law, it always takes precedence over state law. The reality is more nuanced.
When ESIGN Applies
ESIGN applies specifically to transactions “in or affecting interstate or foreign commerce.” This includes most business transactions that cross state lines, international commerce, and transactions involving companies doing business across multiple states.
When UETA Applies
UETA, as adopted by individual states, applies to transactions within that state, including purely local transactions that do not involve interstate commerce.
The Preemption Rules
Here is where things get interesting. ESIGN contains specific provisions about its relationship with state law.
If a state has adopted UETA as approved by the National Conference of Commissioners on Uniform State Laws (without substantial modification), then UETA governs transactions in that state, and ESIGN defers to UETA.
However, if a state law is inconsistent with UETA or ESIGN’s core principles, ESIGN can preempt that state law. The key is that no state can deny the validity of electronic signatures simply because they are electronic.
In practice, this means that if there is a conflict between a state law and ESIGN regarding the validity of electronic signatures in interstate commerce, the ESIGN Act takes precedence. But if the state has properly adopted UETA, UETA governs most day-to-day transactions.
The practical effect is that businesses operating across state lines can rely on ESIGN as a safety net, while UETA handles the details for transactions within any given state.
The Four Requirements for Valid Electronic Signatures
Both UETA and ESIGN establish similar requirements that must be met for an electronic signature to be legally valid:
1. Intent to Sign
Just like with traditional signatures, an electronic signature is only valid if the signer intended it to be their signature. This seems obvious, but it matters legally. A person accidentally clicking a button is not signing. A deliberate act showing intent is required.
2. Consent to Do Business Electronically
The parties must agree to conduct the transaction electronically. For business-to-business transactions, this consent can often be inferred from conduct, such as routinely exchanging contracts via email. For consumer transactions, ESIGN has more specific requirements, including providing consumers with certain disclosures and obtaining their affirmative consent.
3. Association of the Signature with the Record
The electronic signature must be attached to or logically associated with the electronic record being signed. This means there must be a clear connection between the signature and the document. The system capturing the signature must create a record showing how and when the document was signed.
4. Record Retention
All parties must be able to access and retain the signed document. The electronic record must be capable of being reproduced accurately. If a party cannot save or print the document, the signature may not be valid.
Documents Excluded from ESIGN and UETA
Not everything can be signed electronically. Both laws contain important exceptions.
Documents Excluded from Both ESIGN and UETA
Wills, Codicils, and Testamentary Trusts – All states and the federal government exclude these estate planning documents from electronic signature laws. The formalities around wills are considered too important to allow electronic execution without additional safeguards.
Certain Uniform Commercial Code Transactions – While ESIGN and UETA generally apply to the sale of goods under UCC Article 2 and leases under UCC Article 2A, other UCC transactions may not be covered.
Additional Documents Excluded from ESIGN Only
The ESIGN Act excludes several additional categories that UETA does not explicitly exclude:
Family Law Matters – Documents relating to adoption, divorce, and other family law matters are excluded from ESIGN. States may have their own rules about whether electronic signatures are acceptable for these documents.
Court Orders and Official Court Documents – Court orders, notices, and official court documents are excluded.
Utility Service Cancellation Notices – Notices of cancellation or termination of utility services cannot rely on ESIGN for validity.
Default and Foreclosure Notices – Notices of default, acceleration, repossession, foreclosure, or eviction under credit agreements secured by a primary residence are excluded.
Health and Life Insurance Notices – Notices of cancellation or termination of health insurance or life insurance benefits are excluded.
Product Recalls – Product recall notices affecting health or safety are excluded.
Documents Required to Accompany Hazardous Materials – Certain documents related to the transportation of hazardous materials are excluded.
It is important to understand that these exclusions do not mean electronic signatures are automatically invalid for these document types. It means ESIGN does not provide federal authority for their validity. These documents are governed by other bodies of law that may or may not permit electronic signatures.
How These Laws Enable Digital Notarization
The UETA and ESIGN Act created the legal foundation that makes today’s remote online notarization possible. Here is how they connect:
The Foundation They Established
Before UETA and ESIGN, there was genuine uncertainty about whether notaries could act electronically at all. Traditional notary laws required physical seals, ink stamps, and handwritten signatures in notarial journals.
Section 11 of UETA explicitly permits notaries and other authorized officers to act electronically. It states that seal requirements are satisfied when the notary’s electronic signature, along with all other required information, is attached to or logically associated with the record.
ESIGN reinforced this at the federal level for interstate commerce.
What They Do Not Do
While UETA and ESIGN allow electronic notarization, they do not authorize remote online notarization by themselves. RON requires additional legislation because it changes the fundamental nature of notarization from an in-person act to a remote act.
Traditional notary laws in every state require the signer to “personally appear” before the notary. UETA and ESIGN address the electronic nature of signatures and records, but they do not change the personal appearance requirement.
This is why individual states have had to pass specific RON legislation. UETA and ESIGN provide the foundation for electronic signatures and electronic notarization in general, but state RON laws provide the authority for notaries to conduct notarizations via audio-video technology when the signer is not physically present.
The Evolution to RON
Think of it this way: UETA and ESIGN established in 1999-2000 that electronic signatures and electronic notarial acts are legally valid. That enabled in-person electronic notarization, where the signer appears physically before the notary but signs electronically.
State RON laws, which began with Virginia in 2012 and accelerated dramatically during the COVID-19 pandemic, take the next step by allowing the “personal appearance” to occur via live video rather than in the same physical location.
As of early 2025, 45 states and the District of Columbia have enacted permanent RON legislation. California joined this list with SB 696, which took effect January 1, 2024, though full implementation will roll out over several years. Massachusetts and Illinois also went live with RON on January 1, 2024. The legal validity of the electronic signatures used in RON transactions traces directly back to the authority established by UETA and ESIGN.
Practical Implications for Consumers
If you are a consumer who needs to sign documents electronically or get something notarized online, here is what the law means for you:
Your Documents Are Legally Valid
When you e-sign a lease, a car loan agreement, or a healthcare consent form, that signature is just as legally binding as if you signed with pen on paper. UETA and ESIGN guarantee this.
You Have the Right to Paper
Under ESIGN, consumers have the right to receive documents in paper form if they prefer. Before a business can provide required disclosures electronically, they must inform you of your right to receive paper records, tell you how to request paper copies, and obtain your affirmative consent to receive disclosures electronically.
If you withdraw your consent to electronic records, the business must provide paper alternatives (though they may charge reasonable fees for this).
Know What Cannot Be Done Electronically
If you need to execute a will, sign divorce papers, or handle certain family law matters, electronic signatures may not be permitted. Always consult an attorney for these sensitive documents.
Remote Notarization Depends on State Law
Even though UETA and ESIGN allow electronic signatures on notarized documents, whether you can get a document notarized remotely via video depends on your state’s RON law. Most states now allow it, but some have restrictions on certain document types.
Practical Implications for Businesses
For businesses, understanding UETA and ESIGN is essential for compliance and risk management.
Multi-State Operations
If your business operates across state lines, the ESIGN Act provides a federal baseline ensuring your electronic contracts are valid throughout the country. However, you should also understand each state’s version of UETA because that governs purely intrastate transactions.
Consumer Transactions Require Extra Steps
ESIGN imposes specific requirements for consumer transactions that do not apply to business-to-business dealings. Before providing required disclosures to consumers electronically, you must provide clear disclosures about their rights, ensure they can access the electronic records, and obtain their consent in a way that demonstrates they can actually access the records.
For example, if disclosures will be provided through a secure website, the consumer must be given access during the consent process to demonstrate they can use the system.
Industry-Specific Regulations
Beyond UETA and ESIGN, certain industries have additional requirements. Healthcare organizations must comply with HIPAA. Financial institutions may need to meet requirements of 21 CFR Part 11 or other regulatory standards. Government contracts have specific rules under the Federal Acquisition Regulation.
Audit Trail Documentation
Both laws require records that can demonstrate the process by which documents were signed. This means your e-signature solution should create comprehensive audit trails showing who signed, when they signed, from what location or IP address, and how their identity was verified.
Documents That Still Need Paper
Understand which documents your business handles that fall outside ESIGN and UETA. Wills, court documents, certain insurance notices, and family law documents may require traditional signatures regardless of how convenient electronic processing would be.
Choosing Between Electronic and Traditional Notarization
With the legal foundation established, how do you decide whether to use electronic or traditional notarization?
When Electronic Notarization Makes Sense
Electronic notarization, whether in-person electronic notarization (IPEN) or remote online notarization (RON), offers significant advantages for most business transactions.
Real estate closings benefit enormously from electronic notarization. Documents can be reviewed in advance, signed from any location, and recorded electronically in many jurisdictions. The mortgage industry has embraced electronic notarization to reduce closing times and errors.
Financial services documents like loan agreements, account openings, and beneficiary changes can be processed faster with electronic notarization.
Legal documents including affidavits, powers of attorney, and contracts are well-suited to electronic notarization in most states.
Healthcare documents like consent forms and HIPAA authorizations can be notarized electronically with proper compliance safeguards.
When Traditional Notarization May Be Better
Certain situations may still call for traditional in-person notarization with paper documents.
Documents requiring apostilles for international use often need traditional notarization. Many foreign authorities and apostille-issuing offices still require physical seals and wet-ink signatures.
Some estate documents like wills have specific formality requirements that vary by state. Even in states that allow electronic wills, the requirements may be more complex than for other documents.
DMV documents in some states still require traditional notarization because the department’s systems are not configured to accept electronically notarized documents.
Signers uncomfortable with technology may prefer the familiarity of traditional notarization. There is no legal requirement to use electronic methods.
Looking Forward
The legal framework established by UETA and ESIGN continues to evolve. Several states, including Arizona, Nevada, and Tennessee, have amended their electronic transaction laws to address blockchain technology and smart contracts. These amendments clarify that signatures and records secured through blockchain are covered by electronic signature laws.
Federal legislation like the SECURE Notarization Act has been proposed to create minimum national standards for remote online notarization, building on the foundation that UETA and ESIGN created.
As technology continues to advance, these foundational laws remain the bedrock upon which new innovations are built. Understanding them helps you navigate the current landscape and prepare for what comes next in digital commerce and notarization.
Conclusion
The UETA and ESIGN Act might not be household names, but they touch nearly every digital transaction in modern American commerce. These two laws work together to ensure that electronic signatures carry the same legal weight as traditional pen-and-ink signatures, while providing a framework for electronic notarization that enables today’s remote online notarization industry.
For consumers, these laws mean you can confidently sign documents electronically knowing they are legally binding. For businesses, they provide the legal certainty needed to operate in the digital age.
Understanding which law applies to your situation, knowing the exceptions, and recognizing when traditional methods might be preferable will help you make informed decisions about electronic and traditional notarization.
Frequently Asked Questions
What is the main difference between UETA and the ESIGN Act?
UETA is a model state law adopted by 49 states that governs electronic transactions within each state. The ESIGN Act is a federal law that governs electronic signatures in interstate and foreign commerce. ESIGN provides a national baseline, while UETA handles state-level details. When state laws conflict with ESIGN regarding the validity of electronic signatures in interstate commerce, ESIGN takes precedence.
Can a will be signed electronically under UETA or ESIGN?
No. Both UETA and ESIGN specifically exclude wills, codicils, and testamentary trusts from their coverage. This means electronic signatures on wills cannot rely on these laws for validity. Some states have passed separate electronic wills legislation, but the requirements are typically more stringent than for ordinary electronic signatures.
Do UETA and ESIGN authorize remote online notarization?
Not directly. UETA and ESIGN authorize electronic signatures and electronic notarization in general, but they do not change the traditional requirement that a signer must personally appear before a notary. Individual states have had to pass specific RON legislation to allow notarization via video technology. However, UETA and ESIGN provide the foundation for the electronic signatures used in RON transactions.
What happens if my state has not adopted UETA?
Only New York has not adopted UETA, though New York has its own electronic signature law called ESRA. Additionally, the federal ESIGN Act applies to transactions affecting interstate commerce regardless of state law. This means electronic signatures are valid throughout the United States, though the specific governing rules may vary.
Are electronic signatures accepted in court as evidence?
Yes. Both UETA and ESIGN explicitly provide that electronically signed documents cannot be denied admission as evidence in court solely because they are electronic. The strength of that evidence depends on the quality of documentation supporting the signature, including audit trails, identity verification records, and proof of the signing process.
What consumer protections does ESIGN provide?
ESIGN requires businesses to provide consumers with specific disclosures before obtaining consent to electronic records. Consumers must be informed of their right to receive paper records, how to obtain paper copies, and any fees involved. Consumers must affirmatively consent to electronic delivery and demonstrate they can access electronic records. Consumers can withdraw consent at any time.
Can I be forced to accept electronic documents instead of paper?
For consumer transactions, no. ESIGN protects the right of consumers to receive paper documents if they prefer. However, a business may charge reasonable fees for providing paper alternatives or may choose not to do business with customers who refuse electronic processes.
Which law governs if I am signing a contract with a company in another state?
The ESIGN Act applies to transactions “in or affecting interstate or foreign commerce,” which includes most contracts between parties in different states. ESIGN provides the federal framework ensuring validity. However, state law (typically UETA) may govern procedural details and any issues not addressed by ESIGN.
Does typing my name in an email count as an electronic signature?
Potentially, yes. Under both UETA and ESIGN, typing your name can constitute an electronic signature if you intend it as your signature and the other requirements are met. However, this type of signature may be harder to prove in court compared to a signature captured through a formal e-signature platform with audit trails.
Can I refuse to sign electronically?
In consumer transactions, yes. ESIGN protects your right to paper records. However, the business may charge reasonable fees for paper alternatives or may choose not to do business with you if you refuse electronic processes.
Is an e-signed contract as strong as a paper contract in court?
Yes, if properly executed. Courts routinely accept e-signed contracts as evidence. The key is having good documentation showing the signature process, the signer’s intent, and the integrity of the document.
Do both parties have to use the same e-signature system?
No. As long as each party’s signature meets the legal requirements, they can use different systems. However, using a single platform typically provides better audit trails and easier document management.
What if I signed something electronically by accident?
Intent is a requirement for a valid signature. If you can demonstrate you did not intend to sign (for example, you clicked a button without understanding it was a signature), the signature may be invalid. However, proving lack of intent can be difficult.
