What is an electronic signature?

On October 1, 2000, the Federal Electronic Signature Law took effect. This law basically stated that "digital contracts" that a consumer agrees to online with their electronic signature will have the same legal status as pen-and-paper contracts. The new law made it much easier to complete business transactions online, such as buying an insurance policy, closing a mortgage and other common business agreements. Businesses can simply send the contract via email or have it online on their website with a place for consumers to agree to terms and provide their electronic signature. It has also given businesses the ability to send consumers required notifications electronically, rather than by standard mail. The electronic signature law made things quicker for business owners and consumers, but it is still important to read all the small print and details of a contract before you e-sign.