The E-Sign Act has established major requirements for e-Signature validity. For e-Signature validity, businesses or financial institutions and their consumers must enter into an agreement. This agreement, implied or explicit, pertains to conducting business electronically.
Conducting business electronically may require consumers to provide their e-Signatures. E-Signatures, as stated by the E-sign Act, are valid if there is an intent to sign by the consumer. The consumer also has the option to decline the signature request.
The signature request is fulfilled by the consumer who signs the signature. The signature, according to the E-sign Act, must make a visible mark or statement on the document. The document must show the association of the signature with the record.
The record is attributed to the signature of the consumer. The consumer’s signature or unique mark, as stated in the E-Sign Act, must be attributable to the consumer signing and only linked to the consumer.
The consumer affixes the signature on the electronic documents. The electronic documents signed by the consumer are required by the E-Sign Act to be saved, viewed, or printed by the business institution or the consumer and stored for future reference.
E-Sign works similarly to handwritten signatures. Handwritten signatures are unique to each consumer or signer. When the consumer or signer provides the electronic signature on a document, the signature is created using the signer’s private key. The signer’s private key is securely kept by the signer.
The signer’s signed document is matched digitally using the mathematical algorithm. The mathematical algorithm acts as a cipher that creates a hash. A hash is a set of data that matches the signed document and is encrypted to form the E-Signature. E-Signature is also marked with the time of the signing of the document. If the document changes after the signing, the E-Signature is invalid.