Legal Definitions - UETA

The Uniform Electronic Transactions Act (UETA) is a law adopted by most U.S. states that provides a legal framework for the validity of electronic signatures and electronic records. Its primary purpose is to ensure that transactions conducted electronically are given the same legal effect as those conducted using traditional paper documents and handwritten signatures. Essentially, UETA prevents a contract or other legal record from being denied legal effect or enforceability solely because it is in electronic form or because an electronic signature was used, provided certain conditions are met regarding intent and attribution.

Here are some examples of how UETA applies:

• Online Lease Agreement: A college student finds an apartment and receives the lease agreement via email. They review the document and sign it using an electronic signature service, which then sends the signed copy back to the landlord.

  How this illustrates UETA: UETA ensures that this electronically signed lease agreement is just as legally binding and enforceable as if the student had printed, physically signed, and mailed a paper copy of the lease. The electronic signature holds the same legal weight as a handwritten one.

• Digital Service Contract: A small business owner subscribes to a new cloud-based accounting software. During the sign-up process, they click an "I Agree" button to accept the terms and conditions of service, which are displayed on the screen.

  How this illustrates UETA: UETA validates this electronic acceptance. By clicking "I Agree," the business owner forms a legally binding contract with the software provider, even though no physical document was signed. UETA ensures that this electronic record of agreement is enforceable.

• Electronic Invoice and Payment Authorization: A freelance graphic designer sends an invoice to a client via email. The client responds by email, authorizing payment and instructing their bank to transfer funds electronically, confirming their agreement to the invoice terms.

  How this illustrates UETA: UETA supports the legal validity of these electronic communications. The email exchange constitutes a valid record of the transaction and the client's authorization, making the agreement to pay legally enforceable, even without a physical signature on a paper invoice or a written payment authorization form.