UETA predates ESIGN, but both lay out requirements for electronic signatures and electronic records to be afforded the same treatment as that of their paper counterparts – UETA at the state level, and ESIGN at the federal level.Ĭlicking a button or checking a box in order to indicate your assent fulfills the requirement that “intent to sign” is demonstrated by the signer. The Uniform Electronic Transactions Act (UETA) was adopted by the National Conference on Uniform State Laws in 1999 and has since been adopted by 47 states. The Uniform Electronic Transactions Act (UETA) ESIGN laid out several requirements, or standards, used to determine the validity and legal enforceability of electronic agreements in these circumstances. The law was intended to facilitate the use of electronic signatures and other electronic records as they pertained to interstate and foreign business transitions. The federal Electronic Signatures in Global and National Commerce Act (ESIGN) was enacted on June 30, 2000. There are a few key pieces of legislation that specifically outline the regulation of clickwrap agreements. Yes, clickwrap agreements (provided they are designed, presented, and tracked in compliance with best practices) are just as enforceable as both traditional wet ink signatures and electronic signatures in the US. The success rates of all three have declined over the years as the courts have become more sophisticated in their assessment of these agreements and in the evidentiary support required to enforce them. In 2020, clickwrap agreements had a 70% success rate, compared to 64% for sign-in-wrap, and 14% for browsewrap agreements. Unlike clickwrap, sign-in-wrap and browsewrap agreements are “accepted” when the user performs another action: sign-in, register, login, or just using the website (browsewrap).Ĭompared to sign-in-wrap and browsewrap, clickwrap agreements have maintained the highest success rate in court. A clickwrap agreement eSignature is a collection of key data points that comprise an audit trail, confirming that a user “actively assented” to an agreement through an action, such as clicking a button.Ĭlickwrap agreements are much more prevalent in B2C businesses where companies are selling products and services exclusively online, but have become a much more common, legally binding way to enter into a contract with another party in B2B as well.īecause clickwrap agreements require users to affirmatively assent to a contract by checking a box or clicking a button, a clickwrap is the most commonly enforced type of online agreement. What makes clickwrap agreements different from an eSignature option is the electronic “signature” (that barely legible, squiggly line you draw with your mouse or finger) that is placed on a document to memorialize your signature. Contract acceptance is an important stage in the contract management process.
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