UETA (Uniform Electronic Transactions Act)

What is UETA (Uniform Electronic Transactions Act)?

The Uniform Electronic Transactions Act (UETA) is a model law drafted by the Uniform Law Commission in 1999 to provide a consistent legal framework for electronic transactions across U.S. states. It has been adopted by 49 states (all except New York, which has its own Electronic Signatures and Records Act). UETA establishes that electronic records and signatures carry the same legal weight as their paper and ink counterparts.

UETA applies only when both parties to a transaction have agreed to conduct business electronically. This consent requirement ensures that no one is forced into electronic transactions against their will. The agreement to transact electronically can be inferred from the circumstances — for example, if both parties regularly exchange documents via email.

Key principles of UETA include: a record or signature may not be denied legal effect solely because it is in electronic form; if a law requires a record to be in writing, an electronic record satisfies that requirement; and if a law requires a signature, an electronic signature satisfies that requirement. The law also addresses issues like attribution (determining who created an electronic record) and the effect of changes or errors in electronic records.

In practice, UETA and the federal ESIGN Act together create the legal backbone for electronic commerce in the United States. Most e-signature platforms rely on these laws to assure their users that electronically signed agreements are legally enforceable.