Thursday, April 14, 2011

Electronic Contracts

Good news! 15 USCS 7001(a)(1) says that a signature, contract, or other record relating to such transaction may not be denied legal effect, validity, or enforceability solely because it is in electronic form; and 15 USCS 7001(a)(2) declares that a contract’s validity may not be denied legal effect solely because an electronic signature or electronic record was used for its formation.

Naldi v. Grunberg (908 N.Y.S.2d 639 (2010)) interprets this statute according to NYS law, that electronically subscribed contract be given the same legal effect as a contract subscribed on paper, whether or not the transaction affected interstate or foreign commerce.

This means that contracts, including real estate contracts, may be signed and sent by either electronic mail or facsimile.