Electronic contract: what makes it valid and how to sign one
Based on the ESIGN Act (15 U.S.C. 7001) · Reviewed in October 2026
An electronic contract is an agreement created and signed in electronic form instead of on paper. In the US the ESIGN Act says a contract cannot be denied legal effect only because it is electronic. Most business and consumer contracts can be signed this way.
Forms an electronic contract can take
| Form | Example | How agreement is shown |
|---|---|---|
| Signed PDF | A lease signed from a phone | A drawn or typed electronic signature |
| Clickwrap | Terms accepted when buying online | A click on «I agree» |
| Email exchange | An offer and an acceptance by email | The words and the sender name |
| Contract platform | A service agreement in a signing tool | A signature plus an audit trail |
What makes an electronic contract valid
An electronic contract needs the same things as a paper one. An offer, an acceptance, something of value exchanged, parties able to contract and a lawful purpose.
On top of that, the electronic form has to show four things well. Each one is what a court looks at if the contract is ever disputed.
- 1Intent to sign. The person took a clear action to sign or agree.
- 2Consent to do business electronically. The parties agreed to use electronic records.
- 3Attribution. The signature can be linked to the person.
- 4Record retention. The signed record can be kept and reproduced accurately.
The law that recognizes electronic contracts
The ESIGN Act applies to transactions in interstate and foreign commerce. Most states also adopted the Uniform Electronic Transactions Act, and New York has its own Electronic Signatures and Records Act.
For consumers, ESIGN adds a step. Before giving required information electronically, the business must get the consumer consent and tell them how to get paper copies and withdraw consent.
Documents excluded from ESIGN
15 U.S.C. 7003 lists documents the Act does not cover. They follow other rules, usually paper.
- Wills, codicils and testamentary trusts.
- Adoption, divorce and other family law matters.
- Court orders, notices and official court documents.
- Notices of utility cutoff.
- Notices of default, foreclosure, repossession or eviction on a primary residence.
- Cancellation of health or life insurance.
- Product recall notices that affect health or safety.
- Documents that must travel with hazardous materials.
Electronic contracts in other countries
| Country | Law |
|---|---|
| United Kingdom | Electronic Communications Act 2000, section 7 |
| European Union | eIDAS Regulation |
| Philippines | Electronic Commerce Act, RA 8792 |
| India | Information Technology Act 2000, with excluded documents |
| Mexico | Commercial Code, articles 89 to 114 |
See the validity guide by country for the details of each one.
Electronic signature and digital signature
An electronic signature is any electronic sign of agreement, such as a drawn signature or a click. A digital signature uses a certificate from a certification authority to seal the file.
Most electronic contracts use electronic signatures backed by an audit trail. That is what SignSolú provides.
How to make an electronic contract hold up
- Send the full text, not a summary, and let the signer read it before signing.
- Use a clear action to sign, such as drawing a signature and pressing a button.
- Record the consent to sign electronically.
- Keep an audit trail with who signed, when and from where.
- Seal the file so changes can be detected.
- Give every signer a copy of the signed contract.
The first clauses of a general contract
- 1Parties. This agreement is made on [date] between [party A] and [party B].
- 2Purpose. Party A will [deliver or perform], and Party B will pay [amount] on [terms].
- 3Electronic signatures. The parties agree to sign this agreement electronically and that electronic signatures have the same effect as handwritten ones.
- 4Counterparts. This agreement may be signed in counterparts, each of which is an original.
Use the full contract template
How to sign an electronic contract online
Upload an electronic contract to SignSolú or start from a template. Add each signer with a name and a phone number or email.
Each signer gets a link by WhatsApp or email. On a phone they tap the brown bar at the bottom that says «Sign as …».
They draw their signature once with a finger and press «Sign and Send». Every place in the document that needs it gets filled.
A line next to that button records their consent to sign electronically, with a link to the disclosure.
The signed PDF ends with an audit certificate. It shows each signer, the time, the IP address and a SHA-256 hash of the file.
For a one-off letter or form, you can also sign it online for free from a PDF or a photo of the paper.
Common mistakes
- 1Pasting a signature image. It proves little about who placed it.
- 2No record of consent. Consumers must agree to electronic records.
- 3Using it for an excluded document. A will signed this way may fail.
- 4Losing the file. A contract you cannot reproduce is hard to enforce.
What courts look at in a dispute
When someone says they never signed, courts look at how the link reached the person, what they saw before signing, what action they took and whether the file changed after.
An audit certificate answers each of those questions with dates, times, an IP address and a hash, which is why it matters more than the image of the signature.
An example
A landlord in Florida rents to a tenant who is still living in another state. The landlord sends the lease from SignSolú, and the tenant signs it from a phone that night.
Months later the tenant disputes a clause on pets. The landlord opens the signed PDF, which shows the version signed, the time and the tenant phone number. The question ends there.
Electronic contracts for consumers
When a business must give a consumer information in writing, ESIGN asks for consent before using electronic records. The consumer must also learn how to get paper copies and how to withdraw consent.
SignSolú shows the consent next to the «Sign and Send» button, with a link to the disclosure, so each signer sees it before signing.
Keeping electronic contracts
A contract is only useful if you can produce it later. Keep the signed PDF with its certificate in one archive, not in personal email.
People also ask
Is an electronic contract legally binding?
Yes, for most contracts. The ESIGN Act and state UETA laws give it the same effect as paper.
What are examples of electronic contracts?
Leases signed online, terms accepted at checkout, service agreements signed on a platform and offers accepted by email.
Can an email be a contract?
Yes, if it shows an offer, an acceptance and the other elements of a contract. A signature block can count as a signature.
Which contracts cannot be signed electronically?
Wills, family law documents, court orders and some consumer notices listed in 15 U.S.C. 7003.
How do you prove an electronic contract was signed?
With the audit trail: who signed, when, from which address, and a hash showing the file did not change.
Do electronic contracts need a notary?
Most do not. A few documents, such as some real estate and estate planning papers, need a notary under their own rules, and many states allow remote online notarization.
What is the difference between an e-contract and a paper contract?
Only the form. The same contract rules apply, and the e-contract adds the need to show intent, consent, attribution and a reliable record.
Can a contract be signed by email?
Yes, if the email shows agreement to the terms. A signing platform gives stronger evidence than an email reply.
Do electronic contracts need two signatures?
They need the signatures the contract calls for, the same as on paper. Each party signs from their own link.
Can I use an electronic contract outside the US?
Yes, in most countries. Check the local law for documents that need paper, a notary or a qualified signature.
Is an electronic contract valid without a date?
A missing date does not void a contract, but the audit trail records the exact time each person signed.
Are electronic signatures legally binding in all states?
Yes. ESIGN applies nationwide, and almost every state also has UETA or its own e-signature law.
Can a minor sign an electronic contract?
The same rules apply as on paper. Many contracts with minors can be cancelled by the minor.
Is a scanned signature an electronic signature?
It can be, but it proves little alone. An audit trail ties a signature to the person who made it.
Related templates and guides
Sources
- ESIGN Act, 15 U.S.C. 7001 and 15 U.S.C. 7003, on govinfo.gov
Frequently asked questions
Are electronic contracts legal?
Yes. The ESIGN Act recognizes them for most transactions in the US.
Does an electronic contract need a witness?
Usually no. Some documents need witnesses or a notary under their own rules.
Can I sign a contract on my phone?
Yes. Draw your signature and press «Sign and Send».
Is a typed name a valid signature?
It can be, if it shows intent to sign. A drawn signature with an audit trail is stronger.
How long should I keep an electronic contract?
As long as you would keep the paper version, and at least until claims under it expire.
Can both parties sign at different times?
Yes. Each signs from their own link when they are ready.