Electronic signatures are legally valid across the United States. But unlike the UK's relatively unified framework, the US has a layered system of federal and state law. Here's a clear breakdown.
The Two Laws You Need to Know
ESIGN (federal, 2000) — The Electronic Signatures in Global and National Commerce Act established the legal validity of electronic signatures across the US. Core principle: a signature, contract, or record may not be denied legal effect solely because it is in electronic form.
UETA (state-level) — The Uniform Electronic Transactions Act has been adopted by 49 states plus DC. Where a state has adopted UETA, it governs electronic signatures for transactions within that state. ESIGN acts as a federal backstop.
What Both Laws Require
For a valid electronic signature: (1) intent to sign, (2) consent to do business electronically, (3) the signature must be logically associated with the document being signed, and (4) the signed record must be capable of being retained and reproduced.
What Can and Cannot Be Signed Electronically
Can: Commercial contracts, employment agreements, real estate purchase agreements and leases, loan agreements, insurance policies, NDAs, settlement agreements.
Cannot: Wills and codicils, adoption and divorce documents (most states), court orders, notices of cancellation of utility services, life/health/accident insurance cancellations (some states).
State Variations
New York — did not adopt UETA, has ESRA instead. Verify compliance with ESRA for New York transactions.
California — adopted UETA with modifications. Consumer contracts have specific disclosure requirements.
Illinois — adopted UETA with specific requirements for some real estate transactions.
Federal agencies — ESIGN allows electronic signatures with federal agencies, but individual agencies set their own requirements.
Consumer Disclosures
Under ESIGN, before obtaining a consumer's electronic consent you must: disclose the right to have records on paper, disclose the right to withdraw consent, provide hardware/software requirements, and disclose procedures for updating contact information. Most e-signature platforms handle these automatically.
The Audit Trail in US Litigation
Courts ask: can you prove who signed, when, and that they intended to sign? A comprehensive audit trail answers all three. Your platform should capture: email address, IP address, device information, exact timestamp, authentication method, and a cryptographic hash of the signed document. SignFlow Now's Certificate of Completion captures all of these.
The Bottom Line
Electronic signatures are legally binding throughout the US for the vast majority of commercial transactions. The framework has been upheld in courts for over two decades. If your platform complies with ESIGN, it meets requirements across all 50 states.