Is an electronic signature on this document as good as ink in North Carolina?
Yes, within the Uniform Electronic Transactions Act's scope and only between parties who agreed to transact electronically. N.C.G.S. § 66-317 provides that a record or signature may not be denied legal effect or enforceability solely because it is in electronic form; that a contract may not be denied legal effect or enforceability solely because an electronic record was used in its formation; that if a law requires a record to be in writing an electronic record satisfies the law provided it complies with the Article; and that if a law requires a signature an electronic signature satisfies the law on the same condition. The gate is agreement: § 66-315(b) provides that the Article 'applies only to transactions between parties each of which has agreed to conduct transactions by electronic means', and that whether the parties so agreed 'is determined from the context and surrounding circumstances, including the parties' conduct'. 'Electronic signature' is defined by § 66-312(9) as an electronic sound, symbol or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.
The trap
The scope section is where North Carolina deals differ from the federal picture. Section 66-313(b) takes a transaction out of the Article to the extent it is governed by a law governing the creation and execution of wills, codicils or testamentary trusts; by Chapter 25 of the General Statutes, the Uniform Commercial Code, OTHER THAN G.S. 25-1-306, Article 2 and Article 2A; or by Article 11A of Chapter 66. So a sale of goods or a lease of goods is inside the Act, while a negotiable instrument, a secured transaction record or a letter of credit under the rest of Chapter 25 is outside it as to what those Articles govern, and only to that extent, because § 66-313(c) puts a record or signature excluded by (b) back inside the Article to the extent it is governed by a law other than the ones (b) specifies. Section 66-313(e) then lists five things the Article does not apply to at all, no matter who agreed to what: four of them notices, of the cancellation or termination of utility services including water, heat and power; of default, acceleration, repossession, foreclosure or eviction, or of the right to cure, under a credit agreement secured by, or a rental agreement for, an individual's primary residence; of the cancellation or termination of health insurance or benefits or life insurance or benefits, excluding annuities; and of the recall of a product or a material product failure that risks endangering health or safety, and the fifth not a notice at all but any document required to accompany the transportation or handling of hazardous materials, pesticides or other toxic or dangerous materials. So the e-notice provision in a residential loan or lease does not get the Act's blessing. And § 66-315(c) gives a party who agreed to transact electronically the right to refuse to conduct OTHER transactions electronically, and says that right 'may not be waived by agreement' (the one thing in § 66-315 that an agreement cannot touch, since (d) otherwise lets the effect of the Article's provisions be varied by agreement), so a blanket consent-to-electronic-everything clause cannot bind a counterparty for the future. One North Carolina cross-reference worth knowing: § 6-21.6(b)(1) makes a reciprocal attorneys' fees clause in a business contract enforceable on an electronic signature 'as defined in G.S. 66-312' only where the signature originates from an affirmative action such as typing or drawing the party's signature, and 'business contract' is defined by § 6-21.6(a)(1) as a contract entered into primarily for business or commercial purposes, which does NOT include a consumer contract, an employment contract or a contract to which a government or a governmental agency of this State is a party.
12 authorities
- statuteN.C.G.S. § 66-317enactment date not established
The words that state the rule
A record or signature may not be denied legal effect or enforceability solely because it is in electronic form. (b) A contract may not be denied legal effect or enforceability solely because an electronic record was used in its formation. (c) If a law requires a record to be in writing, an electronic record satisfies the law provided it complies with the provisions of this Article.
- statuteN.C.G.S. § 66-315enactment date not established
The words that state the rule
(a) This Article does not require a record or signature to be created, generated, sent, communicated, received, stored, or otherwise processed or used by electronic means or in electronic form. (b) This Article applies only to transactions between parties each of which has agreed to conduct transactions by electronic means. Whether the parties agree to conduct a transaction by electronic means is determined from the context and surrounding circumstances, including the parties' conduct.
- statuteN.C.G.S. § 66-313enactment date not established
The words that state the rule
(a) Except as otherwise provided in subsections (b), (c), and (e) of this section, this Article applies to electronic records and electronic signatures relating to a transaction. (b) This Article does not apply to a transaction to the extent it is governed by: (1) A law governing the creation and execution of wills, codicils, or testamentary trusts. (2) Chapter 25 of the General Statutes other than G.S. 25-1-306, Article 2, and Article 2A. (3) Article 11A of Chapter 66 of the General Statutes.
- statuteN.C.G.S. § 66-313enactment date not established
The words that state the rule
(c) This Article applies to an electronic record or electronic signature otherwise excluded from the application of this Article under subsection (b) of this section to the extent it is governed by a law other than those specified in subsection (b) of this section. (d) A transaction subject to this Article is also subject to other applicable substantive law.
- statuteN.C.G.S. § 6-21.6enactment date not established
The words that state the rule
Reciprocal attorneys' fees provisions in business contracts are valid and enforceable for the recovery of reasonable attorneys' fees and expenses only if all of the parties to the business contract sign the contract by hand or with one of the following:
- statuteN.C.G.S. § 66-317enactment date not established
The words that state the rule
(d) If a law requires a signature, an electronic signature satisfies the law provided it complies with the provisions of this Article.
- statuteN.C.G.S. § 66-312enactment date not established
The words that state the rule
(9) "Electronic signature" means an electronic sound, symbol, or process attached to, or logically associated with, a record and executed or adopted by a person with the intent to sign the record.
- statuteN.C.G.S. § 66-313enactment date not established
The words that state the rule
This Article shall not apply to: (1) Any notice of the cancellation or termination of utility services, including water, heat, and power. (2) Any notice of default, acceleration, repossession, foreclosure or eviction, or the right to cure, under a credit agreement secured by, or a rental agreement for, a primary residence of an individual. (3) Any notice of the cancellation or termination of health insurance or benefits, or life insurance or benefits, excluding annuities. (4) Any notice of the recall of a product, or material failure of a product that risks endangering health or safety. (5) Any document required to accompany the transportation or handling of hazardous materials, pesticides, or other toxic or dangerous materials.
- statuteN.C.G.S. § 66-315enactment date not established
The words that state the rule
A party that agrees to conduct a transaction by electronic means may refuse to conduct other transactions by electronic means. The right granted by this subsection may not be waived by agreement.
- statuteN.C.G.S. § 66-315enactment date not established
The words that state the rule
(d) Except as otherwise provided in this Article, the effect of any of its provisions may be varied by agreement. The presence in certain provisions of this Article of the words "unless otherwise agreed", or words of similar import, does not imply that the effect of other provisions may not be varied by agreement. (e) Whether an electronic record or electronic signature has legal consequences is determined by this Article and other applicable law.
- statuteN.C.G.S. § 6-21.6enactment date not established
The words that state the rule
(1) An electronic signature, as defined in G.S. 66-312, if the party's electronic signature originates from an affirmative action on the part of the party to evidence acceptance and execution such as typing the party's signature or writing the party's signature with a finger or stylus on a touchscreen to indicate acceptance and execution. (2) A manual signature that is delivered by an electronic reproductive image thereof.
- statuteN.C.G.S. § 6-21.6enactment date not established
The words that state the rule
(1) Business contract. - A contract entered into primarily for business or commercial purposes. The term does not include a consumer contract, an employment contract, or a contract to which a government or a governmental agency of this State is a party.
“Defective” means that reading found something to correct. What you are reading is the rule as it stands after that reading.