In recent years there has been an undeniable shift towards digital and electronic platforms to optimize and transform antiquated systems of business transactions. With the passing of the Electronic Signatures and the Global National Commerce Act, commerce between international companies became easy and increasingly productive.
On June 30, 2000 Congress enacted the Public Law 106-229 stating that electronic signatures or, e-signatures, be considered as a valid and binding contract between two parties. The law was instated to facilitate the use of electronic records and signatures in both foreign and interstate commerce. Concord Worldwide utilizes electronic signature technology to help companies become more efficient in the maintenance of their legally binding contracts. Through their online contract management system, Concord honors this Public Law and offers the use of the e-signature to increase convenience of legal communication.
The Act begins by stating that any contract, record or signature executed electronically does not lose any legality, validity or enforceability with the parties involved. Electronic contracts have the same legal effect that hard copy contracts do. The consumer in a binding electronic contract is to be provided with clear and conspicuous information prior to providing an electronic contract. Such information includes: the right to receive any electronic information in paper form, a description of the withdrawal procedures, how to gain access to the legal information and the notification of changes. The law makes note that oral communication or the recording of oral communication does not qualify as being legally binding.
The platform on which an electronic contract is either generated or signed must have the capability to retain and accurately reproduce the record at any time for any persons or parties involved. That said, if a contract is produced on a separate operating system, all parties involved must have access to it for the electronic record to be considered as legally binding.
The Secretary of Commerce has promoted both the acceptance and use of electronic signature technology with the purpose of facilitating the growth and development of both foreign and domestic commerce. Twelve months following the passing of this law, the Secretary of Commerce submitted a report to Congress on the efficaciousness of this Public Law. The Secretary stated that the benefits outweighed the burdens of electronic signature technology and supported the continuing of electronic legal records.
Concord complies with these important regulations to ensure exact legality. The online system through which they operate allows parties to draft, eNegotiate, sign, execute and optimize their contracts. With the e-signature feature, contract management becomes simple and productive for the conducting of one’s business.
3-4-2016 | by Emily Sanders