Legal Definitions - Uniform Electronic Transactions Act

The Uniform Electronic Transactions Act (UETA) is a model law created in 1999 to support electronic commerce. Its purpose is to provide a legal framework for recognizing and retaining electronic records, establishing how parties can bind themselves in an electronic transaction, and allowing governmental agencies to use electronic records.

UETA applies to electronic records and digital signatures, but only if all parties agree to do business electronically. This means that if you want to sign a contract electronically, both parties must agree to use electronic signatures.

Here are some examples of how UETA might apply:

• You want to sign a lease for an apartment online. The landlord sends you a digital copy of the lease, and you sign it using an electronic signature. Both you and the landlord agree to use electronic signatures, so UETA applies.
• You want to buy a car from a dealership. The dealership sends you a contract to sign electronically, but you prefer to sign a paper copy. In this case, UETA does not apply because both parties have not agreed to do business electronically.

These examples illustrate how UETA provides a legal framework for electronic transactions, but only if both parties agree to use electronic records and signatures.