Internet Fax And Digital Signatures Laws

Many business owners do not opt for online fax services because they reckon that signing papers the old fashioned way and faxing them over a fax device works better and is a more solid evidence of contract fulfillment. They would rather print the document, sign it and then send it by courier.

Well, this is the old-fashioned way of doing business and is resorted to because these folks have not yet heard about ESIGN. For those not in the know, ESIGN is the abbreviation of Electronic Signatures in Global and National Commerce Act.

ESIGN is a federal US law that was enacted on 30 June, 2000. It was passed by the US Congress because it felt the need to facilitate usage (and validity) of electronic records and electronic signatures in America and around the world. It came as a boon and has facilitated many online and offline global and national deals since then.

The Internet has brought with it many conveniences and made the world a smaller place. It has facilitated business like no other technology ever has. Now, with ESIGN, you can fax contracts with electronic signatures around the world and these would be perfectly valid in America. This works to the advantage of many American business owners.

There’s no more signing documents the old fashioned way and faxing them page per page over an antiquated fax device. All you have to do is sign up with an Internet fax service and email-to-fax your documents with a single click.

Today, every state in USA has at least one law that pertains to electronic signatures. This is why doing business in USA has become simpler, even though the economy has yet to fully recover.
ESIGN lays down the rules for interstate commerce.

According to section (101.a) of ESIGN, a contract or signature “may not be denied legal effect, validity, or enforceability solely because it is in electronic form.” This puts electronic signatures on par with physical signatures and therefore, the law must treat them as equals.

Section 101 (sub-section (b) and (c)) of ESIGN, preserves the right of individuals to opt for paper signatures instead of electronic signatures. Therefore, every form that requires an electronic signature must contain consent that states that the signatory has agreed to use the electronic format.

Section 101 (d) of ESIGN allows a business to retain electronic records (instead of physical records) so long that electronic record accurately reflects the essence of the contract and remains accessible to people who are allowed and entitled to access it. The electronic record must be capable of being accurately reproduced at a later date whether by printing or transmission or any other means.

So, this is what ESIGN is all about.
If you are considering switching over from a fax device to an online fax service but are afraid of document validation, don’t be. ESIGN has made business life a lot simpler and productive, and it is time you junked your Jurassic fax device and moved over to Internet fax.

Joshua A. Streep

About the Guest Author:

Joshua A. Streep is a blogger and technical advisor from Maryland.